Aiming cooperation with PLN, Kayan Hydroelectric can supply 12 GW of electricity

Jakarta – The Kayan Hydroelectric Power Plant (PLTA) project in North Kalimantan will add to the national new renewable energy (EBT) mix, said Coordinating Minister for Economic Affairs Airlangga Hartarto, Monday (10/10).

Hartarto, who was present at the Kayan Cascade Hydroelectric Power Plant event – a cooperation between PT Kayan Hydro Energy and Sumitomo Corporation – hoped that the hydropower plant would be able to help accelerate the development of the energy transition using new renewable energy (NRE).

PT Kayan Hydro Energy (KHE) and Sumitomo Corporation as the initiator and proponent of the hydropower project will explore opportunities for synergies to support national policies through collaborative initiatives with PLN. This collaboration is related to accelerating the reduction of carbon emissions and replacing them with renewable energy.

“The Kayan Cascade hydropower plant development, which can expand up to around 12 Giga Watt, has become the attention of the President, and this has become part of Indonesia’s commitment to achieve net-zero emissions by 2060 or sooner. The government also targets 23 percent of all energy sources in Indonesia to come from renewable energy by 2026,” said Hartarto, in an official statement.

KHE’s Director of Operations, Khaeroni explained, the company has done various things related to electrification for industrial and port needs. Since 2019 KHE has carried out pre-construction work and this year KHE has prepared initial construction support infrastructure activities for the construction of the Kayan Cascade hydropower plant which has the potential to generate 9,000 megawatts of electricity.

“Currently the work in the field cannot be maximised because it is still waiting for the process of determining the forest area utilisation permit (IPPKH). And, in principle, the IPPKH can be issued by the Ministry of Environment and Forestry (KLHK) due to changes in laws and regulations. Also based on a reply letter from KLHK to KHE regarding the requirements that have met the technical, legal and administrative completeness and obligations,” Khaeroni said.

He said that the company had been waiting for the IPPKH for quite a long time which has slowed down the work in the field. “So far we have only worked outside the forest area. We do not dare to carry out any activities in the forest area because it can be considered a violation of the rules,“ Khaeroni said.

KHE’s investment value for this hydropower plant has reached USD 17.8 billion, with more than IDR 2 trillion of funds already disbursed by KHE. This figure does not include infrastructure financing and industrial development. KHE has also signed an engineering, procurement, and construction (EPC) contract with Sinohydro Corporation Limited, one of the largest hydropower developers in the world, on October 31, 2018.

“The target for the Kayan hydropower plant is still in accordance with the initial planning, namely construction is completed in 2024 and the commercial operation date (COD) stage is in 2025,” said Khaeroni.

The capacity of the Kayan Cascade hydropower plant in the first stage is planned at 900 Megawatts (MW), the second stage is 1,200 MW, the third and fourth stages are 1,800 MW each, and the fifth stage is 3,300 MW. The first phase is targeted for completion in 2026. Meanwhile, the second to fifth stages will each take 2 to 3 years from the first phase. (Hartatik)

Banner photo: Kayan Hydroelectric Project (Dok Office of ESDM North Kalimantan)

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