PLTA Poso II hydropower plant to start operation in March

Kalla Group, a diversified conglomerate controlled by the family of former Vice President Jusuf Kalla, will officially inaugurate the operation of PLTA Poso II hydropower plant in South Sulawesi in March this year, The Jakarta Globe reported on Wednesday.

PLTA Poso II which has a capacity of 195 megawatt is one of three hydropower plants currently being built by PT Poso Energy, part of the Kalla Group. PLTA Poso I which will have capacity of 60 MW is scheduled for completion in 2016 and PLTA Poso III which is scheduled for completion in 2018.

The power plants use the water from the Danau Poso, a 32,000-hectare lake in the province.

Solihin Kalla, the director for business development at Kalla Group, said on Tuesday the company has invested a total of Rp 4 trillion ($412 million) to build PLTA Poso II hydropower plant.

?We are hoping that Poso Energy can help meet the growing demand for electricity in Sulawesi , particularly in Central Sulawesi ,? said Solihin, adding that electricity demand in Sulawesi was growing by 20 percent annually.

The operation of Poso Energy?s hydropower plants will also reduce the cost of electricity subsidies, Solihin said. While the government spends some Rp 3,000 per kilowatt hour of electricity generated from diesel-fueled power plants, electricity from the hydro power plant, priced at between Rp 700 and Rp 800 per kilowatt hour, would require no subsidy.

Kalla Group signed the power purchase agreement with state utility firm Perusahaan Listrik Negara in 2008.

Kalla?s name is one among many being floated as potential candidates for the 2014 presidential election.(*)