PGE and PLN IP Finalize Tariff Agreement for 15 MW Lahendong Geothermal Project
PGE and PLN IP have agreed on a tariff for the 15 MW Lahendong Bottoming Unit geothermal project, crucial for advancing Indonesia's clean energy agenda. The project is set to enhance geothermal energy efficiency using binary cycle technology, aiming for commercial operation by 2028.
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PT Pertamina Geothermal Energy Tbk (PGE) and PT PLN Indonesia Power have finalized a tariff agreement for the 15 MW Lahendong Bottoming Unit, marking a key step in the Independent Power Producer (IPP) framework. The agreement, signed on April 10, 2026, in Bandung, West Java, will facilitate further project development phases, including joint venture formation and EPCC processes, with a target for commercial operation by 2028.
The project employs binary cycle technology to utilize residual heat from existing geothermal plants, optimizing energy production without new resource exploration. Following this project, a similar tariff agreement for a 30 MW Ulubelu unit was established in late 2025, indicating ongoing collaboration between state-owned enterprises in geothermal energy development, contributing to Indonesia's clean energy goals.
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