Lumut Balai geothermal plant, Indonesia
The first 55-MW phase of Lumut Balai began operations in 2019. Following its success, PGEO planned a second 55-MW unit to expand the geothermal field’s utilization. In November 2022, PGEO awarded the engineering, procurement, construction, and commissioning (EPCC) contract, with groundbreaking occurring in December 2023. Earlier in 2025, PGEO’s Finance Director set a target for the commercial operations date (COD) between April and May 2025.
Ahmad Yani, PGEO’s Operational Director, stated: “This synchronization is an important step where electricity from the power plant begins to be distributed to the PLN electricity network. This is also an important milestone that shows the progress of the project is on the right track.”
Prior to synchronization, the facility underwent rigorous technical tests to ensure safe and efficient operations. Project Manager Achmad Sri Fadli explained: “This synchronization process is not just about connecting electricity to the PLN network, but involves rigorous system testing to ensure that the power plant operates safely, efficiently, and in accordance with applicable standards and regulations.”
PGEO aims to increase its geothermal capacity to 1 GW within the next two years and reach 1.7 GW by 2034. To support these ambitions, the company allocated a capital expenditure budget of $550 million in 2023. The Lumut Balai Unit 2 expansion aligns with Indonesia’s efforts to enhance renewable energy production, leveraging geothermal resources to meet growing electricity demand sustainably.
The successful synchronization of Lumut Balai Unit 2 demonstrates PGEO’s commitment to advancing clean energy infrastructure, contributing to Indonesia’s renewable energy goals while ensuring operational reliability and safety.
