Sarulla Operations has awarded a contract to Toshiba to supply equipment for the Sarulla geothermal power plant in Indonesia.

Under the contract, Toshiba will supply three 60MW geothermal steam turbines and generators (STG) to the plant, which is claimed to be one of the world’s largest geothermal power plants.

The Sarulla geothermal power plant project is now under construction in Tapanali Utara in Indonesia’s North Sumatra.

Sarulla Operations is a four-company consortium of Itochu Corporation and Kyushu Electric Power of Japan, PT Medco Power Indonesia of Indonesia, and ORMAT International of the US.

Hyundai Engineering and Construction (HDEC) is the engineering, procurement and construction (EPC) contractor for the project.

Toshiba will begin shipments of STGs to HDEC in July 2015.

To be scheduled to start operation in November 2016, the plant’s production 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.

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 by 2025, which the Japanese Government is supporting through its yen loan programme.