Mudajaya?s SE Sulawesi power plant starts operation
Thursday, November 12 2015 - 04:35 AM WIB
Malaysia?s Mudajaya Group Berhad said its 46 percent-owned associate, PT Harmoni Energy Indonesia (PT HEI) has achieved commercial operation date (COD) for its 2 x 7 MW coal-fired steam power plant in Desa Baruta Analalaki, Southeast Sulawesi, Indonesia, on October 29 of this year.
Mudajaya Group MD and CEO James Wong Tet Foh said in a statement Wednesday the successful commissioning and commercial operations of the coal-fired steam power plant marks a significant milestone for the group in its foray into the power sector in Indonesia.
?The debut of this plant marks a game changer for the local community as this plant will augment the existing power plants that are operated using diesel engines within the Bau Bau and Buton region in Southeast Sulawesi. We note that it is PLN?s objective in the long run to increase electricity output using more efficient coal-fired power plants for this region compared to diesel power plants, as illustrated by the Baruta Coal Power Station which could save about 23,600 kilo liters per year of HSD (High Speed Diesel)?, James added.
In addition to this with the development of a proposed special economic region within this region, coupled with the year on year growth in demand for power, there will be a need for additional coal-fired power plants in the near future.
James said the prospects are good for expansion and the group has taken the necessary steps to develop a plant of higher capacity within the vicinity subject to approvals from the relevant authorities.
The 2 x 7 MW coal-fired steam power plant in Southeast Sulawesi, Indonesia is developed on a Build-Operate-Own concept subsequent to PT HEI entering into a Power Purchase Agreement (PPA) for a period of 25 years from COD with PLN in July 2011. This investment will provide a recurrent income stream to the group and is expected to contribute positively towards the earnings and net assets of the Group for the current and future years.
Editing by Reiner Simanjuntak