Jakarta. State-owned utility company Perusahaan Listrik Negara signed power purchase agreements worth Rp 20.4 trillion ($1.5 billion) on Thursday (16/11) with nine independent power producers that will build renewable power plants with a total capacity of 640.65 megawatts.
The deal is part of the government's efforts to increase the portion of renewable energy in the country's primary energy mix to 23 percent by 2025 from just 7 percent currently.
Energy and Mineral Resources Minister Ignasius Jonan said the new power plants, including a geothermal, a hydropower, and seven small hydropower plants, will bring the total capacity included in power purchase agreements signed this year to 1,189.22 MW.
The government has set a target for PLN, which has a monopoly on power distribution in Indonesia, to secure power purchase agreements for a total of 1,200 MW this year.
"Developers' interest in renewable energy is increasing," PLN president director Sofyan Basir said. "Therefore, we will persist with efforts to make it easier for developers to invest in renewable energy."
The agreements signed on Thursday involve the following projects:
1. Rantau Dedap geothermal power plant in Pagar Alam, South Sumatra, to be built by Supreme Energy Rantau Dedap at a cost of Rp 8.2 trillion. It will have a capacity of 86 MW.
2. Poso Peaker hydropower plant in Poso, Central Sulawesi, to be built by Poso Energy at a cost of Rp 11.1 trillion. It will have a capacity of 515 MW.
3. Tanjungtirta small hydropower plant in Banjarnegara, Central Java, to be built by Maji Biru Pusaka at a cost of Rp 201.6 billion. It will have a capacity of 8 MW.
4. Kincang 1 small hydropower plant, also in Banjarnegara, to be built by Koperca at a cost of Rp 9.14 billion. It will have a capacity of 0.35 MW.
5. Bakal Semarak small hydropower plant in Dairi, North Sumatra, to be built by Semarak Kita Bersama at a cost of Rp 125.6 billion. It will have a capacity of 5 MW.
6. Bone Bolango small hydropower plant in Bone Bolango, Gorontalo, to be built by Bone Bolango Energi at a cost of Rp 416.5 billion. It will have a capacity of 9.9 MW.
7. Koko Babak small hydropower plant in Lombok, West Nusa Tenggara, to be built by Sumber Daya Investasi at a cost of Rp 86.79 billion. It will have a capacity of 2.3 MW.
8. Cikaso 3 small hydropower plant in Sukabumi, West Java, to be built by Zhong Min Hydro Indonesia at a cost of Rp 182.2 billion. It will have a capacity of 9.9 MW.
9. Cibanteng small hydropower plant in Bogor, West Java, to be built by Prima Atrya Energi at a cost of Rp 71.40 billion. It will have a capacity of 4.2 MW.