The budget allocation and plans to use it for capacity growth were announced by PGEO Finance Director Nelwin Aldriansyah during the Q3 Performance Update Roundtable, further adding that all CAPEX will be sourced internally.
PGEO President Director Julfi Hadi had previously said that the company is targeting to grow its own installed capacity to 1 GW in the next 2 years, and potentially up to 1.2 GW in the next five years. PGEO currently has a total capacity of 1,887 MW – 672 MW that are under their direct management, and 1,205 MW managed under Joint Operation Contracts.
The company has ramped up efforts to raise funds in the last year, raising USD 597 million with an IPO in early 2023 and another USD 400 million after issuing green bonds in mid-2023.
Accordingly, PGEO has been aggressive in its expansion efforts. The 55-MW Lumut Balai Unit 2 geothermal power plant is expected to be operational by 2024. Drilling and production testing is ongoing for the 55-MW Sungai Penuh project in Jambi, while infrastructure work continues for the 2×55-MW Hululais Project in Bengkulu.
More recently, PGEO signed an agreement with Chevron New Energies for the joint exploration of the Way Ratai site in Lampung. PGEO had also started setting their sights beyond Indonesia, signing a partnership with Africa Geothermal International Limited (AGIL) for geothermal development in Kenya. Similar expansion plans had been announced for expansion in Türkiye and Germany.
