INDONESIA has signed an agreement for the development of the biggest wind-powered electricity generating plant in the country.
Local media reports say the plant of 60-megawatt capacity will be built in South Sulawesi and is expected to be completed by the end of 2017.
Speaking in Copenhagen, Denmark, on Monday, Indonesian State Enterprises Minister Rini Soemarno said the plant will consist of 21 wind turbines, each with a capacity to produce 3.5MW electricity.
“The PLTB project will be the biggest wind-powered electricity generating project in Indonesia,” Rini was quoted as saying in Antara News.
She added that the project will bring investment into the country while the government would not have to contribute any resources, as stipulated in the agreement. Currently, the project will be bankrolled by foreign investors who will be funding its installation and construction.
“In the future, as per what we have already discussed with them, we will build the towers probably. We will not put in any money but PT PLN has made a commitment to purchase the electricity that will be produced,” she said.
The power purchase agreement, according to the report, was signed by Business Director for Sulawesi and Nusa Tenggara, Machinson Masri, on behalf of Indonesia’s state-owned power company PT PLN and Tim Russel, director of Equis Indonesia.
Vestas Wind System, a Denmark-based company, will be responsible for the construction and supply of turbines.
With the project, Indonesia is aiming to raise the total national renewable energy usage to 23 percent by meeting its 35,000 MW target. Currently, renewable energy accounts for five to six percent of total supply. Last year, the Indonesian government set a target of reducing carbon emissions up to 29 percent by 2030.
Russell said between US$130 and US$140 million in investment is expected to be poured in to the project and the turbines at the PLTB would be the first assets owned by Equis in the country
“The construction process will take 18 months. We also plan to carry out other projects in other regions in Indonesia. Right now, we have five wind speed measuring equipment sets for conducting study,” he said.
Casper Klynge, Denmark’s ambassador to Indonesia, said apart from being a milestone in making a transition to clean energy usage in Indonesia, the agreement is expected to be a doorway to other cooperation agreements in Indonesia.
“The agreement was made possible because of close cooperation between the governments of Indonesia and Denmark as well as private parties. Denmark is happy to be able to help the government of Indonesia to meet its target of 35,000 MW electricity supply,” he said.