UT to expand new renewables business
Friday, August 11 2017 - 12:55 AM WIB
Petromindo|Lucky
IDX-listed heavy equipment and mining firm PT United Tractors Tbk is planning to expand its new renewables business after having started commercial operation of its maiden micro hydro power plant in Kali Pelus, Central Java Province, since early this year.
The move comes amid ongoing push by the government to develop more renewable-based power plants in a bid to realize the target for renewables to account for 23 percent of the country?s energy mix by 2025, as well to help increase affordable power supply particularly in outer regions by taking advantage of local renewable resources such as hydro.
?We have pans (to expand the renewables business), such as hydro and mini hydro (power plants). We already have solar power plant, but the electricity is for our own use,? said Edhie Sarwono, Director of UT, to Petromindo.com on Wednesday.
UT is developing its renewables business via subsidiary PT Bina Pertiwi, which early this year started operation of the Central Java micro hydro power plant, with capacity of 500 kW, supplying the electricity output to state-owned electricity firm PT PLN at a price of Rp 990 per kWh under a 30-year power purchase agreement.
?This (the Central Java power plant) is our trial in the development of renewable-based power plant,? Edhie said, adding that the company spent Rp 10 billion for the project.
Editing by Reiner Simanjuntak