Shikoku Electric, Mitsui join Indonesian firm to supply power to state utility PLN
JAKARTA, NNA – Japanese utility Shikoku Electric Power Co. and trading house Mitsui & Co. will build and manage a hydro-electric plant in Indonesia with a local company to supply power to state utility PLN in a 20-year contract.
This is the first utility project in Southeast Asia for Shikoku Electric, which is already involved in power generation in the Middle East, the United States and Chile. It is also eyeing other hydro projects in Indonesia, the region’s largest economy.
The company announced on Thursday that it and Mitsui had agreed with PT Terregra Asia Energy that each of the Japanese firms would acquire a 15 percent stake in a planned 10,000-kilowatt power plant in North Sumatra Province. Construction began in December, with commercial operation scheduled to start in 2020.
The plant is located about 200 kilometers south of Medan, the provincial capital, and will extract river water to supply electricity to state-owned PT PLN (Persero), for 20 years.
Shikoku Electric will invest several hundred million yen (several million dollars) in the project, a spokesman told NNA.
The total investment in the plant by the three partners will come to about $20 million, according to the Bisnis Indonesia newspaper.
Terregra holds a 50.25 percent share in the plant, and other investors own the remainder, according to a statement by Shikoku Electric.
This is Shikoku Electric’s seventh overseas project. It is involved in gas-fired power plant operations in Oman, Qatar and the United States as well as solar-power generation in Chile.