Jakarta – Terregra Asia Energy plans to develop seven hydropower projects in Sumatra with a total capacity of 510.8 megawatts (MW) and total expenditures of USD 872.53 million until 2030, Finance Director Daniel Tagu Dedo said.
The projects consist of two large hydropower generations, namely the 332 MW Teunom 2, estimated to cost USD 547.80m, and the 135 MW Teunom 3, projected to cost around USD 222.75m. The company is seeking either domestic or foreign partners to co-develop the two projects located in Aceh, Dedo said.
Meanwhile, the five other projects are mini hydropower generations in North Sumatra, namely Sisira, Batang Toru 3, Batang Toru 4, Raisin Naga Timbul, and Raisan Huta Dolok. He stated that they are expected to generate a total of 53.8 MW with a total investment of USD 101.98 million.
The company is in talks with two potential local partners to co-develop the Batang Toru 3 and Batang Toru 4 projects which are expected to begin construction before the end of the year, said Dedo. Meanwhile, Terregra will develop the three other projects with Singapore-based Carbon Resilience, he said.
The company plans to issue green bonds in the future to help finance those projects. The company is yet to decide on the size and the timetable for the issuance, Dedo said.
He is optimistic that local and foreign investors will be attracted to these projects as they can use their investments as carbon credits.
Terregra is one of several companies in Indonesia focusing on developing renewable energy projects. The government in 2014 aims to boost the contribution of renewable energy from 6% to 31% by 2050 and increase the output capacity of hydropower plants from 6.687 MW as of end-2022 to 20.9 gigawatts of electricity by 2025.
Indonesia allows 100% foreign ownership in power plants with a capacity of greater than 1 MW. It also provides tax allowance and tax holidays for renewable energy projects. (I Made Sentana)
