Providing a cost-efficient energy solution to address peak energy demand in South Sumatra
Indonesia has set ambitious goals to have modern renewables provide 23% of its total energy supply by 2025 and is currently off target.
According to the International Renewable Energy Agency (IRENA), only 6% of Indonesia’s total final energy consumption is derived from renewable sources in 2017. This result contrasts a series of ministerial and presidential directives which have demonstrated the government’s political commitment to renewable energy generation. In parallel, there has been an increase in the use of coal, as part of the race to meet Indonesia’s fast-growing demand for electricity.
InfraCo Asia’s co-investment with Tirtagen (PT. Energi Hijau Kencana) in the Endikat Hydro Power project has enabled the Project’s transformation from a 23MW baseload hydro power project to a run-of-river peaking power plant with a capacity of 71MW.
Through the Project, InfraCo Asia aims to contribute to the development of a bankable and commercially viable opportunity, demonstrating the potential for further private sector investment in Indonesia’s renewable energy infrastructure.
The Project is located on the Endikat river, which runs down the Dempo Mountain in the Pagar Alam municipality of South Sumatra province, Indonesia. The peaking power plant aims to address the immediate requirements of the South Sumatran grid by prioritising the delivery of affordable and reliable power during evening peak hours.
Power from the Endikat Hydro Power plant will be generated with Francis hydro turbines and will be evacuated to Perusahaan Listrik Negara (PLN), the state-owned utility company, via a 150kV interconnection.
Once operational, over 670,000 people are expected to benefit from new or improved access to affordable and reliable clean energy. The Project is also expected to create 1,200 jobs in construction and 150 jobs during operations.