Development and construction of the 330 MW Sarulla Geothermal Energy Power Plant in North Sumatra – Indonesia

Newly appointed Coordinating Economic Minister Chairul Tanjung said on Wednesday May 28, 2014 that “It will be the largest geothermal power plant in the world and would have a major role in the Goverment’s plan to increase power supply by about 60 gigawatts by 2022”.

A brief profile of Sarulla Geothermal Energy Power Plant (PLTP) :

  • The Sarulla Geothermal Power Project is located in Sarulla – the Tapanuli Utara district, in North Sumatra province, Indonesia.
  • A power –generation capacity of 3×110 megawatts (MW)
  • The PLTP Sarulla 330 MW project is estimated to be worth US$1.6 billion
  • Plant will built and operated by consortium led by publicly listed Medco Power Indonesia
  • The consortium Sarulla Operations Ltd. had begun preparing infrastructure for the project six months ago and would continue with well drilling and other engineering work from June until year-end.

Energy and Mineral Resources (ESDM) Minister Jero Wacik said on Wednesday May 28, 2014 that “Vice President Boediono would most likely inaugarate the project in ground-breaking ceremony at the end of June 2014”.

Medco Power President Director Fasil E. Alfitri said that “The field work for the mega project will begin in early 2015”.

Fasil said Medco and its partners, under the consortium Sarulla Operations Ltd. had secured financial agreement for the first drawdown of the project’s funding on May 23, 2014.

The consortium Sarulla Operations Ltd. comprises:

  • Medco,
  • Japan’s Itochu Corporation and Kyushu Electric Power Co. and
  • US-based Ormat International Inc.

In 2006, Medco in consortium with Itochu Corporation & Ormat Technologies Inc was awarded to develop the 330 MW Sarulla geothermal Power project by PLN. In 2007 Kyushu Electric Power Co Inc. join as a partner. (Source:

The consortium includes PT Medco Energi International (27.5%), US-based Ormat Technologies (12.75%), Japan based Itochu (25%) and Kyushu Electric (25%). It has a joint operating contract (JOC) with the concession holder Pertamina Geothermal Energy (PGE), a subsidiary of the state-owned oil and gas company PT Pertamina. (Source:

Ormat will supply its Ormat Energy Converters to the power plant.

The financial deal enables Sarulla Operations to draw US$1.17 billion from a consortium of financial institutions, which comprise the Japan Bank for International Cooperation, the Asian Development Bank, Bank of Tokyo-Mitsubishi UFJ Ltd., ING Bank NV, Mitzuho Bank Ltd., the National Australia Bank, Societe Generale SA and the Sumitomo Mitsui Banking Corporation.

The project will be built and implemented through energy contract for 30 years with the state electric company PT Perusahaan Listrik Negara (PLN) , a joint operation contract for 30 years with Pertamina Geothermal Energy (PGE), and a guarantee for 20 years from the Ministry of Finance. (Source:


Electricity will be purchased by PLN at a price of U.S. $ 0.0679 per kilowatt hour (kWh) for 30 years.

Sarulla geothermal power plant includes 220 Mw Silangkitang geothermal power plant and 110 Mw Namora geothermal power plant. The first plant will operate in 2016.

(Source: Media Indonesia)

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One response to “Development and construction of the 330 MW Sarulla Geothermal Energy Power Plant in North Sumatra – Indonesia

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