Sarawak Cable offered two more power plant projects in N. Sumatra

Malaysia?s Sarawak Cable Bhd (SCB) said it has been offered by Indonesia?s state-owned electricity firm PT PLN to develop two additional hydro power plants in North Sumatra one with designed capacity of 80 MW and another 10 MW.

?The offer from PLN is for a direct negotiation (on power tariff). We are studying the offer and will make a decision within this year,? SCM Managing Director and CEO Aaron Toh Chee Ching told The Star.

?We are very keen to undertake a second 10MW plant project there. (But) for the proposed 80MW plant project, we may have to look for an international joint venture partner because of the big investment involved,? he added.

SCB?s 78 percent-owned Indonesia unit, PT Inpola Mitra Elektrindo (IME), is developing a 10 MW hydro plant project with generation capacity of 10MW in North Sumatra due for completion in September of 2015.

Toh said the company is getting a better deal for its first power plant project in North Sumatra after PLN revised upwards the tariff to an average of Rp 998 per kWh from the original average Rp 778 rupiah per kWh under a power purchase agreement (PPA) or an increase of some 28 percent.

Elsewhere, The Star reported that state-owned Sarawak Energy Bhd, which is SCB?s second largest shareholder with a 16.5 percent stake, is scheduled to export power to West Kalimantan, Indonesia before end-2015. The construction of transmission lines and substations on both sides of the Sarawak-West Kalimantan border are progressing well and the new interconnection system would deliver 230MW of renewable energy to PLN.

Toh said that to increase its presence in Indonesia, SCB, which is Malaysia?s largest integrated manufacturer of power cables and conductors, might acquire an Indonesian cable maker which it had already identified.

SCB, the first company in ASEAN having the capability to produce 275kV underground high voltage cables, is pushing for the export of its 132kV underground cables and overhead transmission line conductors to Indonesia. SCB recently acquired Universal Cable (M) Bhd and Leader Cable Industry Bhd that have established international customer base. The group is also involved in the fabrication and construction of transmission towers. (*)