Indonesia plans 500 MW of new hydro

• 10 years ago (2014-03-02)
• Junior Isles

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PT Indonesia Power, subsidiary of Indonesian state-owned PT PLN, is planning the construction of several hydroelectric plants, with a combined capacity of 500 MW, to cope with the country’s ongoing power shortages.

The planned hydro plants include PLTA Maung in Central Java with a capacity of 360 MW, PLTA Rajamandala in West Java with a 47 MW capacity, and a number of smaller hydro plants located primarily in Central Java, Antonius Resep Tyas Artono, Indonesia Power’s director for business development revealed.

“We are still reviewing our studies for the plants’ development. The closest project to be built in PLTA Rajamandala is expected to kick-off construction this year,” Antonius stated.

He added that he expected to see finance secured for the $150 million Rajamandala plant in the near future, while the largest project, the Maung plant, will need around $500 million of investment.

“Investment will partly be financed by loans,” Antonius said, adding that the Rajamandala plant would be completed within three years, while other plants would be finished by 2019.

Currently, Indonesia Power operates eight hydro power plants with a combined capacity of almost 800 MW.

The Indonesian government has been promoting renewable energy as part of an attempt to reduce the country’s dependency on fossil fuels.

Of the 47 128 MW of generation capacity installed at the end of 2013, most of Indonesia’s electricity is produced by diesel and coal fired power plants, with only around 8 per cent generated by hydro power.