Indonesian companies bets on mini-hydropower projects

PT Medco Power Indonesia is set to develop projects to increase its production to 50MW in 2013, while PT ABM Investama (ABMM) is keen to produce 20MW of projects in the future, reported The Jakarta Post.

Commenting on the plans, Medco Power president director Fazil Alfitri stated that the company would sign four contract agreements with construction firms for its other projects in West Java and South Sulawesi.

"Therefore, our portfolio will be 50 MW this year," said Alfriti.

Also, the company owned by PT Saratoga Power has parted nearly $20m from its annual capital expenditure of $135m for 2013 to develop the projects.

The company, which is currently working on a 10MW mini-hydro project in Sukabumi, West Java, expects that to be operational by October 2013.

Fazil stated, "There is potentially 500 MW in mini-hydro [power] in Indonesia."

Although state-owned power company PT PLN concurred with the estimation, it remarked that the current production capacity of the country is 36MW.

As per the power purchase agreements it signed in 2012, the total power production from operational and under-development mini-hydro power plants will reach 211MW, PLN added.

PLN is aiming to reach power production capacity of 12,000MW by 2025, of which 65% will be contributed by the projects built by it and remaining will be developed by private firms.

ABMM is currently conducting studies to develop its projects besides adding that it is seeking partnerships with other firms.

ABMM corporate strategy director Yovie Priadi said that it has finalised 5MW and 10MW projects in South Sulawesi.

"We hope to sign power purchase agreements with PLN this year so that we can continue with the construction contracts."

"However, we want to have a majority stake, which is at least 51 percent," noted Yovie.

In addition, Yovie claimed that South Sulawesi has an annual production potential of around 200 MW from mini-hydro developments.