TOKYO (Yosefardi) – Toshiba Corporation has been awarded a major contract to supply 3 x 60-megawatt geothermal steam turbines and generators (STG) for one of the world’s largest geothermal power plants, the Sarulla geothermal power plant project, which is now under construction in Tapanali Utara in Indonesia’s North Sumatra.

Toshiba, the world’s leading supplier of geothermal power generation equipment, was awarded the contract by Sarulla Operations Ltd. (SOL), a four-company consortium of Itochu Corporation and Kyushu Electric Power Co. Inc. of Japan, PT Medco Power Indonesia of Indonesia, and ORMAT International, Inc. of the U.S.A. The engineering, procurement and construction (EPC) contractor is Hyundai Engineering and Construction Co., Ltd. (HDEC).

Toshiba will start to supply STGs to HDEC in July 2015, and the plant is scheduled to start operation in November 2016. Its output will account for approximately 1% of Indonesia’s total power generation.

Indonesia has the world’s second largest geothermal resources, a potential generating capacity of 28,000MW, but installed capacity to date is a low 1,300MW*1.

With growth driving demand and shortfalls in supply, the Indonesian government is promoting geothermal power as a means to raise generating capacity and reduce reliance on oil, where demand outstripped local production in 2004.

Government plans include IPP projects with a capacity of 12,000MW*2 by 2025, which the Japanese government is supporting through its yen loan program.