Project Development of the Wayang Windu Unit 2 Geothermal Power Plant

Abstract

The development of the Wayang Windu Unit 2 Geothermal Power Plant in West Java, Indonesia, is described. From the commencement of production drilling activities in August 2006 the project achieved completion within 31 months. During this time the existing Unit 1, which is adjacent to Unit 2 with the turbine-generator housed in the same power plant building, continued to operate at full output with no interruptions.
The rating of the plant was reviewed during the detailed design phase to optimise the development for the specific conditions. While the initial concept was to implement as a repeat order of the Unit 1, 114 MWe (gross) plant built during the period 1997 to 2000 which has to date provided excellent service, the design was optimised to produce a 117 MWe (gross) concept.
The design and construction was accomplished as an Engineer, Procure, Construct (EPC) contract with the Sumitomo Corporation of Japan, with Fuji Electric of Japan and Rekayasa Industri of Indonesia performing the two main subcontracts for the power plant and the steam gathering system, respectively. Performance criteria, including specific steam usage per MWe, gross MWe output, and construction period were included in the contract, with penalties to deter non-performance, and incentives for early completion.
Safety, Health & Environmental (SHE) factors also featured as a key performance criterion and the EPC contract was implemented with no lost time accidents from the more than 3 million man hours worked.
Another key feature of the works was the need to employ local labour for all non-skilled activities, as part of the overall community development initiatives of the operating company, Star Energy Geothermal (Wayang Windu) Ltd. (SEG(WW)L), a subsidiary of the Star Energy Holdings Pte. Group. All local staff received a comprehensive induction program to ensure that they understood and could comply with the strict SHE guidelines.
Project management was led by an in-house team, and the Owners Engineer utilised existing SEG(WW)L staff who had intimate knowledge of the existing Unit 1 facility, together with key positions being provided by engineering consultants Maunsell. This concept ensured that experience would be built up within SEG(WW)L.
Financing for the project was based on conventional project finance from an international syndication of banks led by Standard Chartered Bank in Singapore. It is understood that this was the first international project finance to be placed following the Asian economic crisis of the late 1990s. While conventional, the terms of contract limited draw downs on the letters of credit to three main milestones, significantly simplifying financial controls within the project management group. Carbon credits were an integral part of the project financing and the project is in the process of seeking registration under the Clean Development Mechanism of the Kyoto Protocol.