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Bali's Thermal Energy

Local Company Exploring Feasibility of Thermal Energy Generation.

(4/5/2004) A local concern, Bali Energy Limited, in collaboration with the state oil company, PT Pertamina have rejuvenated a long-stalled project to explore the feasibility of thermal energy generation in the areas surrounding the Balinese municipality of Bedugul.

The project, halted in the monetary crisis of 1997, is again back on track and targeted to undertake energy production tests in the period between May and July of 2004. If successful, this will be followed by the sinking of drill holes expected to produce energy on a small scale sometime in 2005.

The Bali operation is headed by a veteran tourism businessman now venturing into the energy sector, Mr. Ida Bagus Ngurah Wijaya, who recently told the local press that the project is currently busy socializing the project to surrounding communities in Bedugul, paving the way for their acceptance of a project expected to produce 10 MW of continuous power by April 2006. Subsequent phases of the project are scheduled to produce an additional 55 MW by June 2008; 55 MW more by June 2009; and another 55 MW by June of 2010.

According to Mr. Wijaya, US$ 46.7 million has already been invested in the project covering the cost of geophysical surveys, test drilling, and infrastructure creation.

Nationwide Indonesia has identified 80 potential production centers for geothermal energy production with a potential output of 20,000 MW of electricity. Indonesia is considered the fourth most potential source of thermal energy after the U.S.A., Philippines and Mexico.

As reported in the Indonesian-language Bisnis Indonesia, the work contract between the Government and the local company has a 30 year production lease following the actual commencement of commercial operations with a 4% profit share payable to the Government and a 34% share for Pertamina. The balance of any profits will go to Bali Energy Limited.