Sewatama expects to sign PPAs for micro hydropower plants this year
Tuesday, January 12 2016 - 10:18 AM WIB
IDX-listed integrated power company PT Sumberdaya Sewatama expects to sign this year Power Purchasing Agreements (PPAs) with state owned electricity firm PT Perusahaan Listrik Negara (PLN) for four micro hydropower plant (PLTMh) projects in South Sulawesi.
The four power project are PLTMh Totinapu (6 MW), PLTMh Palesan (10 MW), PLTMh Sapaya (5 MW) and PLTMh Ma?dong (10 MW). The four projects are expected to come onsream in 2018, Sewatama?s President Director Elan B. Fuadi said on Tuesday.
The four power projects are part of the 50 MW potentials that have been identified by the firm in the province. The rest of the potentials will be developed by the firm once the four micro hydropower plant projects have been completed, Elan said.
The development of the projects costs at US$2-2.5 million per MW, he said, adding Sewatama is exploring various options to finance the projects, including equity participation and project financing.
Recently, the firm signed a bond agreement worth Rp 300 billion with PT Indonesia Infrastructure Finance (IIF), a non-bank financial institution specialized in infrastructure projects, to finance the firm?s power plant projects.
Under the agreement, IIF will purchase mandatory convertible bond worth Rp 300 billion issued by Sewatama. The funds will be used to finance the firm?s power plant projects using renewable energy as fuel.
Sewatama, which was first focused on leasing diesel power generators, is now actively expanding its business to other sectors of power business, including IPP, Operation & Maintenance (O&M) and Energy Efficiency sectors.
Editing by Johannes Simbolon