Indonesia

Indonesia's PP and South Korea-based Hyundai have secured a n contract for the construction of a hydro power plant in Indonesia.

State electricity firm PT PLN has picked the Jpower-Itochu-Adaro consortium’s bid to develop a power plant in Central Java worth about Rp 30 trillion (US$3.48 billion). PLN president director Dahlan Iskan said in Jakarta on Wednesday that the consortium won the bid because it was the only one of the four bidders offering a price lower than that estimated by the bid committee. Marubeni Corporation, China Shenhua Energy Company Ltd and the CNTIC-Guandong Yudean consortium also submitted bids to develop the 2x1,000 megawatt power plant in Pemalang, Central Java, in late April. A press statement from PLN says the project was the first public-private partnership complying with a 2010 presidential regulation on such partnerships. It will be jointly guaranteed by the government and government-sponsored infrastructure financing guarantee agency, PT Penjaminan Infrastruktur Indonesia (PII), the statement says. The Pemalang power plant is expected to commence operations in 2017. The winning consortium includes Japan-based Electric Power Development (J-Power), local coal mining company Adaro Energy and the Japan-based Itochu Corporation.

As part of its bid to finance its capital expenditure, state utility company Perusahaan Listrik Negara is considering various funding options, such as whether to sell dollar-denominated bonds or seek banking loans worth up to $2 billion, its president director said. “We’re still studying whether we will issue global bonds, sukuk bonds or seek bank loans from domestic banks to finance our investment plans,” Dahlan Iskan, PLN’s president director, said in Jakarta on Wednesday. “Next month, we will announce whether or not we will seek the funding this year. The amount will be around $1.5 billion to $2 billion.” PLN’s intended bond sale had been put on hold since last year, but its plan gained momentum after state oil and gas company Pertamina raised $1.5 billion from overseas bond sales earlier this week to finance its expansion plans. Pertamina’s 5.25 percent bond was priced to yield 5.5 percent, it announced on Tuesday. PLN has said previously that Indonesia needs around Rp 82 trillion ($9.5 billion) in funds this year to meet a target of generating around 6,000 additional megawatts of electricity to the power grid. PLN plans to provide Rp 77.4 trillion of its financing needs, with the remainder coming from private companies through partnerships. PLN is allocating Rp 62 trillion for capital expediture next year. The government has announced a two-phase, 20,000 MW fast-track program that is expected to be completed by 2014. PLN and the private sector are each expected to generate 10,000 MW in the plan. Last year, PLN posted a 2.6 percent drop in its net profit to Rp 10.1 trillion.

A consortium of Indonesian and Japanese firms has won a contract to build coal-fired power plants in Central Java.

Up to 300 Chinese investors have expressed a strong interest in infrastructure and environmentally friendly energy projects in Indonesia.

China Gezhouba Group plans to construct a $1bn hydroelectric power plant in Indonesia's Sulawesi Selatan province.

PT Praba Indopersada and the Gezhouba Group have formed a joint venture to construct PLN's 100MW coal-fired power plant in West Kalimantan, Indonesia.

Asia’s energy demand is extremely high. In many low- and middle-income countries, access to energy - sustainable or conventional - is seriously lacking. Even in a major emerging economy like India, energy is too scarce and expensive for much of the population. By financing energy projects in the private sector, development banks help provide more people with access to energy, boosting economic development and improving living standards. Energy is, after all, the quintessential engine of economic and social growth.

Perusahaan Listrik Negara is opening tenders for seven coal-fired power plants with a total capacity of 1,650 megawatts.

The  JBIC is ready to finance the development of two power plants in Central Java and North Sumatra with a total value of more than US$1 billion.

Daewoo plans to build a $290 million power plant in North Sumatra that will supply 60 megawatts of electricity to state utility provider Perusahaan Listrik Negara.

General Electric has allocated US$1.2 billion to finance its expansion outside Java with a brand new office in East Kalimantan province's capital of Balikpapan.

PT PLN will install solar panels worth US$138.76 million for 340,000 new customers in eastern Indonesia this year.

YTL Power will bid for a $3 billion coal-fired power plant in Central Java, Indonesia, in partnership with a number of Japanese firms.

PLN announced it would buy electricity from a 30 MW wind farm run by Viron Energy in Sukabumi, West Java.

Overview On 16 February 2011, the Minister of Energy and Mineral Resources (the MEMR) issued a new regulation on Electricity Pricing for Indonesian Geothermal Projects (MEMR Reg 2/2011). This new regulation is important because it obliges PT Perusahaan Listrik Negara (Persero) (PLN) to buy electricity from independent geothermal power producers and sets price guidelines for the purchase of the power by PLN under the applicable power purchase agreements (PPAs). This regulation will be used as a reference for all geothermal power projects in Indonesia. The procedure for establishing tariffs for Indonesian geothermal power projects has lacked clarity for some years. We expect that MEMR Reg 2/2011 will provide greater certainty to the process of settling tariffs for such projects, thereby expediting the negotiation of geothermal PPAs and helping to provide much-needed impetus to the development of this sector.