Indonesia to develop large-scale hydropower for industry sector

Jakarta (Indonesia Window) – The Indonesian Ministry of Energy and Mineral Resources will develop large-scale hydro power plants under the Renewable Energy Based Industry (REBID) program.

“The program will integrate every aspect from the supply side to energy use, for the large-scale hydropower to be absorbed by industrial markets, like the Kayan hydropower plant in North Kalimantan,” said Harris, the Director of Various renewable energy at the Ministry’s Directorate General of Renewable Energy and Energy Conservation during a virtual discussion here on Jakarta, Thursday (Sep 24).

Harris explained, hydro and mini-hydro power plants will continue to be developed in the archipelagic country in accordance with regulations.

“We hope that both of them can be developed under regulations. We will accommodate inputs from developers. In particular regarding the capacity of power plants below or up to 5 megawatts (MW),” he said.

For capacity above 5 MW, the sale and purchase price will be determined using Business to Business (B to B) scheme.

“The concept is already in the draft of Presidential Regulation,” Harris said.

According to Harris, the Australian Fortescue Metals Group (FMG) is eyeing the large hydro power plant potentials in Papua.

The company plans to invest in the development of 20 gigawatts of hydropower and some industrial zones in the province, such as those located in Memberamo, Urumuka, Idenberg, Balein and Derewo.

In addition, the Ministry of Energy and Mineral Resources continues to optimize projects that have been registered in the List of Selected Providers (DPT) of the State Electricity Company (PLN) with a pure / mandatory IPP (Independent Power Producer) scheme for PLN subsidiaries with a potential of 1,000 to 5,425 MW.

Reporting by Indonesia Window