PLN, Cikarang Listrindo ink deals with US firms to build power plants worth US$4.55 bln

JAKARTA (rambuenergy.com) – State electricity company PT PLN has signed agreements with US companies to develop power plants with a combined value of US$4.547 billion. The agreements were signed on sideline of President Joko Widodo’s visit to the US.

The first agreement was signed between PLN and UPC Renewables worth US$850 million to develop a 350 MW of wind farms within three years (2015-2018, said a statement issued by the President’s communication team. The agreements are part of deals worth a total of US$20 billion signed during the President’s visit to the US.

There was details yet as to where the solar power plants will be built.

The second agreement was signed by Cikarang Listrindo with General Electric worth US$600 million to expand Cikarang Listrindo’s power plant capacity. Listrindo is an IPP.

The third agreement was signed by PT Indonesia Power, a subsidiary of PLN, with General Electric (GE) to develop develop power plant in Java with capacity of 700 MW and with an estimated investment of US$400 million. No further details were given.

The fourth agreement was signed by PLN Batam unit with GE worth US$525 million to develop a mobile power plant with capacity of 500 MW in a number of areas, namely Mataram, Bangka, Tanjung Jabung, Pontianak, Lampung and Sei Rotan.

In addition, PLN also signed agreement with Caterpillar, a heavy equipment producer, worth US$500 million to develop 2 GW of hybrid power plant and Solar PV+energy storage project for microgrid in remote areas (500 lesser islands). The electricity produced from this projects will be sold and delivered to PLN to be distributed to end consumers.

In addition to these agreements, state owned companies also signed agreements, as follows:

  • An agreement between PT Kereta Api Indonesia, a state owned railway company, with GE worth US$60 million to maintain 50 units of locomotive owned by KAI for 8 years;
  • Cargill plans to further invest US$750 million to expand its production capacity in addition to recent investment of US$84 milion;
  • Caterpillar’s plan to invest in building Remanufacturing Facility for Cylinder Head in Cileungsi, Bogor, West Java worth US$12 million;
  • Pertamina inks deal with Bechtel Corporation to develop and construct an oil refinery with investment of US$800 million;
  • An agreement between Kilat Wahana Jenggala with Hubbel Power System to expand its existing plant to produce or assemble insulator polymer transmission for electricity distribution and adding new transmission with investment of US$5-10 million;
  • An agreement between Perum Peruri, currency producer, with Crane Currency to build a currency security in Karawang worth US$10 million and with Jarden Zinc to build a plant in Karawang worth US$30 million. (*)

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Photo credit : EBTKE Office at Energy Ministry (ESDM)

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