Indonesia ready to build a Hydroelectric Power Plant (HPP) with a total capacity of 9,000 Megawatts(MW) and the investment this project of up to USD24.3 billion. The project located in Bulungan Regency, North Kalimantan and will become the largest HPP in Indonesia.
HPP was built by PT Kayan Hydro Energy (KHE) and PowerChina. The Director of Operations of KHE, Khaerony, explained that the Sungai Kayan HPP will be built in five stages, with a total estimated time of 25 years.
Built on an area of 2,600 hectares(ha), the hydropower plant will have five dams with five generating units. For the first phase 900 MW will be built. The second phase was 1,200 MW, the third and fourth were 1,800 MW each and the fifth stage was 3,300 MW.
Previously, a comprehensive, technical and environmental study was conducted. The study has been conducted since 2009. Dam construction and generation of the first phase can begin to be done at the end of 2019.
"So far there is no activity in the field. We have prepared studies and readiness from upstream to downstream, at the end of this year we plan to start construction," Khaerony said in a media conference held Wednesday (21/8).
Construction work has begun at the end of 2019. Unit 1 river hydropower is targeted to be operational by 2025. Meanwhile, the next unit will be carried out in stages to adjust the required infrastructure development.
In the first and second stages of development there is a difference of one year. While the workmanship from stage two to stage three there is a difference of three years.
"So the second phase was built a year after the first phase of construction began. If the second to third phase is around three years. There is a gap because we also need to prepare infrastructure," he said.
This hydropower plant consists of five units with diverse investment values, in each of the units. The construction costs range from USD 2.3 to 2.7 million per MW. The total capacity of this hydropower plant is 9,000 MW, which means that as a whole it costs USD20.7 billion-USD24.3 billion, or equivalent to Rp289.8 trillion-Rp 340.2 trillion.
This project is funded by Powerchina with Central Asia Capital Ltd. On April 13, 2019, Powerchina, together with PT Indonesia Kayan Hydropower Energy Co. Ltd., has signed a joint development agreement for Hydropower 1-5 hydropower at Kayan River in Indonesia.
Meanwhile in terms of electricity distribution, the Sungai Kayan Hydroelectric Power Plant will be used for the needs of the Tanah Kuning International Industrial Zone and Port. In addition, it can also be used to meet the electricity needs of people in Kalimantan, as well as to increase national energy security. For its distribution, 70% of electricity from the Sungai Kayan hydropower plant goes to KIPI and the remaining 30% can be used to strengthen electricity in Kalimantan.
"We have signed an MoU with PLN. So if we sell electricity through PLN we are ready, given our business area ready. What is clear is that we will electrify the industrial estate. At present electricity in Kalimantan is imported from Malaysia. Later, after this, PLN will not import again, it can even export electricity, "he said. (*)
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