E2I?s power plants in Riau to begin commercial operation in 2014

By Hiski Darmayana

PT Exploitasi Energi Indonesia (E2I) said that two coal-fired power plants in Rengat and Tembilahan, Riau Province, are projected to start commercial operation in 2014.

?We have set a COD (commercial operation date) target of early 2014 for the two power plants. The two projects are expected to be completed by the end of 2013,? said E2I President Director Hendry Sitanggang late last week.

He said that prior to commercial operation, the two power plants, which each has a capacity of 2x7 MW, will have trial production for about 3-5 months.

?The total investment is estimated at US$1.5-2 million per MW,? Henry said. He added that the completion of the projects is expected to help improve the company?s EBITDA margins from the power plant sector, while also created added value to the company?s coal products.

E2I currently operates a 2x7 MW coal-fired power plant in Pangkalan Bun, Central Kalimantan. ?We see demand for electricity in Indonesia to keep growing,? Henry said.

Editing by Reiner Simanjuntak