Transition to Low Carbon Energy
MedcoEnergi's Transition to Low Carbon Energy strategy serves as a roadmap for aligning our business with the evolving energy landscape. This strategy prioritizes a pivot from fossil-based fuels towards renewable energy sources, ultimately contributing to a low-carbon future. In recognition of natural gas' role as a bridge fuel during this energy transition, we are strategically expanding our natural gas production capacity while simultaneously building a robust renewable energy portfolio. This approach allows us to address the region's growing energy demand while mitigating our environmental footprint.
MedcoEnergi is committed to augmenting our electricity supply portfolio through the strategic expansion of gas-fired power generation. The following section details our achievements in gas infrastructure development throughout 2023:
275 MW
Gas-fired Powerplant
Riau - Owned by Medco Power Indonesia and RATCH Group
- Operated by PT Medco Power Servis Indonesia (MPSI)
- Reached Commercial Operation Date (COD) in February 2022
- Achieved the first fully operational year in 2023
2x35 MW (Existing) +
39 MW (Add-on)
Gas-fired Powerplant
Batam - Owned and operated by PT Energi Listrik Batam (ELB)
- The Simple Cycle Power Plant (SCPP) has been operating since 2017
- Currently installing a 39 MW Combined Cycle Add-on
- The Add-on is considered an energy conservation project, utilising exhaust energy to produce additional electricity
- The Add-on plans to reach COD in Q3 2025
Geothermal Projects
Aligned with our commitment to providing cleaner and more reliable energy solutions, MedcoEnergi has actively pursued the expansion of our geothermal energy capacity in Indonesia. The following section highlights our key geothermal projects as of 2023:
With our focus on delivering cleaner and reliable energy, MedcoEnergi has been keen on working towards
330 MW
Sarulla Geothermal
North Sumatra - Owned by a consortium of Medco Power, Kyushu Electric Power, Itochu, INPEX, and Ormat International
- Currently the largest single-contract geothermal power plant in the world
- Potentially contribute to the reduction of 1,090,196 tCO2 e/year
- Reached Commercial Operation Date (COD) in 2017 for Unit 1 and Unit 2, and Unit 3 commenced operation in 2018
34 MW
Ijen Geothermal
East Java - Operated by Medco Power and Ormat Technologies
- Potentially contribute to the reduction of 235,000 tCO2 e/year
- Completed development drilling for Ijen Phase 1 (34 MW)
- Plan to achieve COD in Q1 2025
Solar Photovoltaic (PV) Projects
MedcoEnergi has strategically expanded its solar photovoltaic (PV) portfolio in recent years. By 2025, we anticipate delivering nearly 750 MWp of clean energy generation capacity through four strategically located solar PV projects across Indonesia. The following section details the progress achieved in these projects as of 2023:
| Project | Progress in 2023 |
|---|---|
Sumbawa PV Project (26 MWp) |
|
| Bali PV Project (2x25 MWp) |
|
| Bulan Island PV Project (670 MWp) |
|
| Solar Rooftops at ELB and MRPR site offices |
|
MedcoEnergi's onshore assets in the South Sumatra Block, Rimau, and Lematang have successfully completed a series of decarbonization initiatives. These initiatives encompass process efficiency enhancements, solar photovoltaic (PV) installations, and facility footprint reductions. Our offshore assets are also making significant progress in their decarbonization efforts, focusing on operational improvements and the integration of solar PV technology.
Mini Hydropower
MedcoEnergi leverages its subsidiary, PT Medco Hidro Indonesia, to operate two mini hydropower plants in Cianjur, West Java. These facilities, Cibalapulang and Pusaka Parahiangan, boast a combined capacity of 18 MW.
Wind Energy Project
MedcoEnergi is actively pursuing the development of a wind power plant in Sekongkang, West Sumbawa. The project has an estimated capacity of 50 to 100 MW. To ensure its viability, a comprehensive feasibility study is currently underway, with funding secured through a grant awarded by the United States Trade and Development Agency (USTDA) as of 2023.
Electric Vehicles
Following the signing of a Memorandum of Understanding (MOU) with PLN, Grab Indonesia, and Bank Mandiri, MedcoEnergi has been actively involved in supplying electric vehicle (EV) charging infrastructure to support operations in Jakarta, Pekanbaru, and Batam.
CCS and CCUS
Medco Power is fostering strategic collaborations with various industry leaders to explore and implement best-in-class decarbonization technologies. The following table provides an overview of some key developments within these partnerships:
| Carbon Capture and Storage (CCS) and Carbon Capture, Utilisation and Storage (CCUS) | |
|---|---|
| Explore potential opportunities for adopting CCS and CCUS technologies | Established an interim target of launching an upstream CCS Pilot Project by 2025, and committed to strengthening our strategic partnerships to explore CCS business opportunities |
| Contributed to the development of CCS and CCUS regulations through our involvement with the IPA and relevant task forces organised by the Indonesian government | Green Hydrogen |
| Signed an MOU with Sembcorp to explore opportunities in utilising green hydrogen as an energy source | |