en.Wedoany.com Reported - PT Pertamina Geothermal Energy (PGEO) has initiated exploration activities for the 55 MW Lumut Balai Unit 4 geothermal power plant in South Sumatra, Indonesia. This unit will join the existing Lumut Balai geothermal field and is scheduled to commence commercial operations in 2032.

The exploration plan includes constructing supporting infrastructure, drilling three exploration wells, conducting production tests, and obtaining resource confirmation notifications. PGEO Corporate Secretary Kitty Andhora stated that the state-owned enterprise has invested USD 32.21 million during the project development phase. The Lumut Balai geothermal field first generated electricity in 2019, and the 55 MW Unit 2 commenced operations in 2025. In early 2026, PGEO announced the launch of drilling platform construction for the 55 MW Unit 3, which is expected to be operational by 2030. The development of Unit 4 is based on geoscientific studies and simulations of the existing geothermal reservoir, with the drilling area located near the main upflow zone, characterized by high permeability.

Operating Director Andi Joko Nugroho added that the project is supported by a Power Purchase Agreement containing a price adjustment mechanism, and the annual growth in electricity demand in South Sumatra enhances its commercial viability. Lumut Balai Unit 4 has been included in the 2025-2029 Blue Book of the National Development Planning Agency, enabling the attraction of foreign investment through concessional loans.

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