Japan’s Chugoku Electric makes its first overseas hydro power investment in Indonesia
JAKARTA, NNA – Japanese utility Chugoku Electric Power Co. is making its first overseas investment in hydro power generation business through a share acquisition of an Indonesian plant amid stiff competition in Japan.
The company, based in Hiroshima, western Japan, said Friday it will buy a 25 percent stake in PT. Energy Sakti Sentosa. The Indonesian company owns an 18,000-kilowatt hydroelectric power generation plant in North Sumatra Province.
ESS has a stable revenue source through a 30-year power purchase agreement with Indonesia’s state-owned electric power company, PT. Perusahaan Listrik Negara, which began in 2016, Chugoku Electric said.
The Japanese utility will buy the 25-percent stake from PT. Kencana Energi Lestari through Chugoku Electric Power Singapore Pte. Ltd., a wholly owned subsidiary.
It plans to complete the purchase by the end of March, a spokesman said. He declined comment on the value of the investment.