Overview
The scope of this project was construction of a new geothermal generating facility (approx. 20 MW) at the existing Lahendong Geothermal Power Plant located more than 20 kilometers to the south of Manado, the state capital of Northern Sulawesi.
The Minahasa power grid (Northern Sulawesi State), where the Lahendong Geothermal project was located, is situated in a region in the outer islands of Indonesia with particularly tight power supply-demand. Actual supply capacity is limited to 118 MW (peak demand is 113 MW) as a result of the ageing of the existing facilities and operational stoppages for maintenance. The expansion of power supply capacity by extending power plants and by increasing the stability of the power supply in the Minahasa power grid was necessary for the development of the local economy.
Benefits
The project aimed to assist diversify use of energy resources towards renewable energy. It was also focused on reducing the consumption of diesel and coal (fossil fuels) which has locally beneficial health impacts. The project also had a positive impact on the economy. Through meeting the demand for electricity in the economy, economic growth was supported. Foreign exchange reserves were also saved through reducing reliance on imported oil.
Finally, the project supported economic growth through the addition of jobs and thereby reducing poverty. Meanwhile the project supported electrification thereby enhancing the quality of life of inhabitants in northern Sulawesi.