News

Continued foreign interest in renewable energy investment in Indonesia

Darajat Unit I owned by Indonesia Power (a PLN subsidiary) with steam supplied by Chevron (source: wienblog-growingtree/ blogspot)
Alexander Richter 15 Sep 2015

Italian power company looking at $100 million investment into 55 MW geothermal project in Indonesia, so reported in news on overall foreign renewable energy investment interest in Indonesia.

There continues to be strong interest in investment in renewable energy projects in Indonesia, according to the country’s Investment Coordinating Board (BKPM).

In a statement on Monday, the BKPM said it received investment proposals of as much as $380 million from an Italian power company last week, during chairman Franky Sibarani’s trip to Milan, Italy, last week.

According to the statement, the Italian company hopes to build two renewable energy power plants in Riau: a $280 million steam-powered electricity generator with a capacity of 250 megawatts and a $100 million geothermal power plant with a capacity of 55 megawatts.

The company is likely Enel Green Power, which announced in April this year, that it had signed an MOU with Japanese firm Marubeni on a cooperation in “evaluating potential business opportunities in renewable ventures mainly in the Asia-Pacific Region.  Markets like Philippines, Thailand, India, Indonesia, Vietnam, Malaysia and Australia were identified as targets to address geothermal, wind, solar and hydro projects. However only projects in the development phase were to be considered. See here.

The investment coordinating board is now facilitating a meeting for investors and representatives from the state power operator Perusahaan Listrik Negara (PLN), the Energy and Natural Resources Ministry and potential local partners, the BKPM chairman said.

In the first half of this year, BKPM recorded 226 ongoing power plant investment projects worth Rp 18.4 trillion ($1.3 billion) in Indonesia. Renewable energy accounts for 10 percent of the projects, including hydro-powered and geothermal generators.

Source: Jakarta Globe