By Romel S. Gurky
PT Medco Cahaya Geothermal (MCG), a joint venture between PT Medco Power Indonesia and Ormat Technologies, has officially launched commercial operations at the Ijen Geothermal Power Plant, marking the first geothermal facility in East Java.
This development represents a significant advancement in Indonesia’s renewable energy efforts, supporting the country’s energy transition and renewable energy targets, said Medco Power, a subsidiary of IDX-listed listed PT Medco Energi Internasional Tbk (IDX: MEDC), in a statement on Friday (Feb 7).
The Ijen Geothermal Power Plant has a planned total capacity of 110 MW, with the first phase now operational, contributing 35 MW to the Java electricity grid through a 30-year power purchase agreement (PPA). The project is supported by 83 transmission towers and a 150kV transmission line, which will help stabilize the grid and provide power to approximately 85,000 households within the Java-Bali electricity system.
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In recognition of its commitment to safety, the Ijen project received multiple accolades in 2024, including awards for occupational safety and health from the Directorate General of Renewable Energy and Energy Conservation, as well as a zero-accident award from the East Java provincial government.
Ijen marks Medco Power’s second geothermal facility, following the Sarulla plant in North Sumatra. The company is also exploring other geothermal opportunities in Bonjol (West Sumatra) and Samosir (North Sumatra).
Eka Satria, President Director of Medco Power, said, “The successful development of Ijen Geothermal Phase-1 demonstrates Medco Power’s ability to harness Indonesia’s geothermal resources using cutting-edge technologies. This achievement further underscores our commitment to expanding our renewable energy portfolio and supporting Indonesia’s accelerated transition to clean energy.”
Roberto Lorato, CEO of Medco Energi, added, “The commencement of operations at Ijen Geothermal underscores Medco Energi’s dedication to providing sustainable energy solutions. This project is also a key milestone in our roadmap to achieve Net Zero Emissions for Scope 1 and 2 by 2050, and Scope 3 by 2060, while supporting Indonesia’s energy security and climate goals.”
Editing by Reiner Simanjuntak
