Tata, Chevron bid for Indonesian geothermal project

JAKARTA, March 17 (BestGrowthStock) – India’s Tata Power Co Ltd
(TTPW.BO: ) and Chevron Corp’s (CVX.N: ) Indonesian unit are among
several firms which have submitted bids for a geothermal power
project in Indonesia, a ministry official said on Wednesday.
Indonesia’s PT Medco Energi Internasional (MEDC.JK: ) is part of
a consortium with Ormat Technologies (ORA.N: ), and several other
local firms made separate bids for the project.

Tata, India’s largest private-sector utility, is part of a
consortium with Indonesian firm PT Supraco Energy.

The bids are to build a geothermal power plant in Sorik
Merapi, North Sumatra, with initial capacity of 55 megawatts
(MW) gradually increasing to 200 MW.

“This is a preliminary bid, the government will look
carefully at the capabilities of the firms before deciding on
the winner,” said the official at the energy and mines
ministry, who declined to be quoted by name.

Indonesia has launched the first phase of the programme to
add 10,000 MW of generating capacity from 35 new coal-fired
power plants, which are mostly still under construction.

The government is still finalising the second phase of the
crash programme to add another 10,000 MW using coal, geothermal
and renewable energy resources.

Indonesia, with hundreds of active and extinct volcanoes,
has the potential to produce an estimated 27,000 MW of
electricity from geothermal sources.

However, that potential remains largely untapped because
the high cost of geothermal energy makes the price of
electricity generated this way expensive.

Stock Market News

(Reporting by Muklis Ali; Editing by Sara Webb)

Tata, Chevron bid for Indonesian geothermal project