Ormat Technologies announced that it has been awarded the Telaga Ranu geothermal working area in Halmahera, North Maluku, by the Indonesian Ministry of Energy and Mineral Resources. The concession, granted through a competitive tender that included four qualified bidders, gives Ormat long‑term rights to explore and develop up to 40 MW of baseload geothermal capacity in the region.
The award expands Ormat’s Indonesian development pipeline by roughly 200 MW when combined with its existing 59 MW of operating assets, reinforcing the company’s strategy to grow in high‑tariff markets. The 40 MW project adds a new revenue stream that is expected to become operational by 2030, aligning with Indonesia’s goal of replacing diesel‑based power generation with clean energy.
Indonesia’s feed‑in tariff policy places the Telaga Ranu site in the country’s highest approved tariff zone, offering some of the world’s most attractive renewable incentives. This policy, coupled with the country’s ambition to reach 5,799 MW of geothermal capacity by 2030, positions the concession as a key driver of Ormat’s long‑term growth in the region.
Ormat’s CEO Doron Blachar emphasized that the concession “represents a significant step in strengthening our development pipeline and highlights our confidence in Indonesia’s long‑term geothermal potential.” The company plans to initiate detailed feasibility studies and engineering work immediately, with the goal of bringing the project online by 2030.
Analysts view the concession as a positive addition to Ormat’s portfolio, noting that the high tariff environment and Indonesia’s supportive regulatory framework enhance the project’s commercial viability. The award also strengthens Ormat’s standing as a leading vertically integrated geothermal developer in emerging markets.
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