Jakarta. Bhumi Jati Power, a joint venture led by Japanese conglomerate Sumitomo Corporation, begun construction of an expansion to its Jawa-4 coal-fired power plant in Jepara, Central Java, several months ago and is on course to begin its operational phase in the next four years.
The expansion will add two power plants with a total capacity of 2,000 megawatts – which are among the largest facilities in the government's 35,000 MW power construction program – to help secure stable power supplies in Java.
Ignatius Jonan, the minister of energy and mineral resources, launched the construction in an inaugural ceremony on Thursday (31/08).
"The construction of this Jawa-4 power plant will meet the growing power demand in Java-Bali in the future, encouraging investors to continue to establish new industries in the islands and drive economic growth," said Amir Rosidin, the business director for Central Java at state utility company, Perusahaan Listrik Negara (PLN).
Bumi Jati has been working on the $4.2 billion plant since April, after securing a power purchase agreement with PLN last September.
The company will sell the power to PLN over a period of 25 years after starting the commercial operation, slated for September 2021.
The plants will implement ultra-supercritical (USC) technology, operating at temperatures and pressures at which liquid water and steam coexist in equilibrium. The technology allows the power plants to operate with 45 percent efficiency and use less coal.
Conventional coal-fired power plants, which boil water to generate steam that turns the turbine, have an efficiency rate of about 32 percent.
Sumitomo owns 50 percent of Bhumi Jati Power, while the remaining shares are equally divided between Kansai Electric Power and United Tractors, a heavy machinery company controlled by one of Indonesia's largest business groups, Astra International.