Enel Green Power and Indonesia’s PT Optima Nusantara Energi have been awarded a license to explore geothermal resources and develop the 55MW Way Ratai power project in Lampung province in Indonesia.
Way Ratai will be the first geothermal project developed by Enel in the country, and marks the company’s entry into Indonesia’s renewables market.
Enel will invest up to $30m in the exploration phase of the project, which is part of the investment programme set by the company’s current strategic plan.
Construction of the plant, which will depend on the results of the exploration phase, is expected to be complete in 2022.
EGP and PT will set up a special purpose vehicle for the project, with Enel holding the majority stake.
Electricity generated by the plant will be sold to the national utility PLN under a 30-year power purchase agreement, Enel said.
Enel chief executive officer and general manager Francesco Starace said: “The award is also the starting point from which we intend to build a solid platform for future investment opportunities in the country.”
Image: Enel
