PT Medco Cahaya Geothermal (MCG) has signed a financing agreement with PT Sarana Multi Infrastruktur (Persero) (SMI) for the development of the 110 MW Ijen geothermal power plant project in Indonesia.
MCG, a jointly owned company between Medco Power and Ormat Geothermal Power, will develop and operate the first geothermal power plant in East Java province. The Ijen power plant will be developed in two stages. Work on the first stage is expected to be completed in 2025 and will be able to generate around 34 MW annually. The signing demonstrates Medco Power’s commitment in developing renewable power for Indonesia.