Indonesia to build a US$100 million wind farm

This will be the country's largest wind farm consisting of 16 to 33 wind turbines.

State-owned power distribution monopoly Perusahaan Listrik Negara (PLN) said the wind farm to be built off the coast of Samas in Yogyakarta will be Indonesia’s second and its largest.

PLN president director Nur Pamudji said he is eager to see Indonesia’s second large-scale wind farm in operation by the end of next year so as to reduce the country’s reliance on costly fossil fuels.

“This will be Indonesia’s second wind farm after the one in Sukabumi. It will be the largest,” Pamudji said.

Two wind farm developers UPC Renewables Indonesia and Binatek Reka Energi ,will build the $100 million wind farm that will consist of 16 to 33 wind turbines. The total capacity of the wind farm is placed at 50 megawatts.

Pamudji said PLN was interested in buying power from the UPC Renewables wind farm because it would save billions of dollars that would otherwise be spent on costlier fuel. The two companies signed a non-binding agreement last week that will allow UPC to move push through with its investment plan.

A power-purchase agreement will be signed between UPC Renewables and the government after the former submits an investment plan and comes up with a price for its energy.

UPC Renewables is offering a purchasing period of 30 years at a price of US$0.13 per kilowatt hour for the first 20 years and US$0.07 per kWh beyond that.