Agreement signed on $2bn 1GW coal-fired expansion in Indonesia


Indonesia’s state-owned electricity utility has signed an agreement with Marubeni and its partners to purchase power froPLNm the Cirebon coal-fired expansion power plant to be built in West Java Province of Indonesia.

PT Perusahaan Listrik Negara (PLN) signed the deal which will see Cirebon Energi Prasarana (CEPR), a joint venture between Marubeni, PT Indika Energy Tbk, Samtan, Korea Midland Power, and Chubu Electric Power build the 1 GW project.

The Japanese companies are expected to supply the main equipment for the power plant, which will receive funding from international commercial banks and export credit agencies including Japan Bank for International, Nippon Export and Investment Insurance and Export-Import Bank of Korea.

Planned to be commissioned in 2020, the $2bn power plant is being built to meet the growing power demand in the country and is a fit for the government’s aim to have 35 GW of additional power capacity in the next five years.

Reuters reports that the new power plant will be integrated with Toshiba-built turbines as well as boilers from Mitsubishi Hitachi Power Systems.

Featuring ultra-super-critical technologies, the facility will be 30 per cent owned by Marubeni, 25 per cent Indika and 20 per cent by Samtan. Additionally, Korea Midland Power and Chubu Electric each own 10 per cent in the project.

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