PGEO Ramps Up Geothermal Output with Lumut Balai Unit 2, Eyes 1.7 GW Capacity by 2033
Main Takeaways
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JAKARTA, investortrust.id – PT Pertamina Geothermal Energy Tbk (PGEO), a state-backed geothermal developer, has fully commenced operations at its Lumut Balai Unit 2 geothermal power plant, adding 55 megawatts (MW) of capacity and pushing its total installed output to 728 MW across five operating assets.
“On June 29, 2025, Lumut Balai Unit 2 officially began operations and started delivering electricity to PLN,” said PGEO Investor Relations Manager Ronald Andre P. Hutagalung during the company’s Market Outlook 2025 forum at the Indonesia Stock Exchange (IDX) building on Thursday, July 3.
The development marks a key milestone in PGEO’s medium-term strategy to reach 1 gigawatt (GW) of geothermal power and aligns with Indonesia’s broader roadmap toward achieving net zero emissions by 2060.
Super Grid and Cogeneration on the Horizon
To support this transition, PGEO is preparing long-term initiatives, including the rollout of a national super grid—a multi-island transmission system connecting Sumatra–Batam, Sumatra–Java, and Java–Kalimantan.
“Super grid infrastructure will become the backbone for distributing clean energy nationwide and is a fundamental requirement to accelerate the renewable energy mix,” Ronald emphasized.
Indonesia’s government has set a target of 5 GW of installed renewable energy capacity by 2034 under its National Electricity General Plan (RKUN) and PLN’s Electricity Supply Business Plan (RUPTL). By 2060, the goal is to reach 304 GW. As of 2024, total installed renewable capacity stands at just 2.6 GW, underscoring the vast opportunity for clean energy players like PGEO.
Unlocking 3 GW Potential
Although PGEO holds over 3 GW in geothermal potential, only a fraction—728 MW—has been realized to date. The company plans to expand installed capacity to 1.7 GW by 2033, leveraging both new development and collaborative projects.
Among its “quick wins” is a joint cogeneration initiative with PLN Indonesia Power, projected to deliver a combined 230 MW to the national grid. Cogeneration plants can simultaneously produce electricity and useful heat, offering higher efficiency and reduced emissions.
PGEO’s aggressive expansion comes amid rising investor interest in renewable infrastructure and government efforts to strengthen Indonesia’s green energy sector.