Adaro Power seeks new power projects

Electricity firm PT Adaro Power, a subsidiary of IDX-listed coal miner PT Adaro Energy Tbk, aims to participate more in power plant tenders arranged by state-owned electricity company PT PLN next year to boost its expansion, The Jakarta Post reported.

The participation would be a part of the company?s efforts to reach its long-term target of building more power plants with a total capacity of 20,000 megawatts (MW) from 2012 until 20 years ahead, Adaro Power CEO Mohammad Effendi said on Tuesday as quoted by the paper.

Effendi said Adaro Power would aim for at least 40 percent from around a 4,000-5,000 MW tender planned by PLN next year in conjunction with the development of the company?s current and future projects.

?PLN has said that it will arrange at least 4,000 MW and perhaps up to 5,000 MW next year. It would be great if we were able to take 40 percent of the amount," he said at a press conference.

According to Effendi, PLN?s tender next year is part of its efforts to reach the goal of 35,000 MW mentioned by President Joko Widodo for the next five years until the end of his tenure.

Effendi said that PLN would need several investors to help the government reach its goal, which would add to Indonesia?s current capacity of 40,000 MW.

In October, PLN announced that it would soon arrange a tender for the development of two power plant projects with a total capacity of 4,000 MW, which were referred to as the Java 5 and 7 power plants with a capacity of 2x1,000 MW each.

The coal-fired power plants, which will cost around US$3 billion, will be located in the western part of Java, either in Banten, Jakarta or others.

Effendi said that Adaro Power had already begun developing a power plant in Batang, Central Java under PT Bhimasena Power Indonesia and two others in South Kalimantan under PT Tanjung Power Indonesia and PT Makmur Sejahtera Wisesa. (*)