Mitsubishi enters geothermal business in RI

By Demas Simbolon

Japan-based energy giant Mitsubishi Corporation has agreed to acquire 20 percent stake in Star Energy Geothermal Pte Ltd., a holding firm that manages operation of the Wayang Windu power project.

The Wayang Windu project is a geothermal power plant which has been in operation since 2000 in Java and is known as one of the world?s largest geothermal resources with a potential gross capacity of 420 MW.

This acquisition marks Mitsubishi?s entry into the Indonesian power industry and its first operation of a geothermal power plant. A company statement said that through this project, Mitsubishi is aiming to develop and operate multiple geothermal power plants in Indonesia, including the expansion of Wayang Windu.

Java, where Indonesia?s population and industry is concentrated, is expected to see a 7 to 8 percent annual growth in demand for electricity in the coming years. Accordingly, the country has declared the development of new sources of power as a national priority, and is aiming to make use of its estimated 29,000 MW of world class geothermal reserves.

Editing by Dadan Wijaksana