Sumatra hydro project ready by next year


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  • Saturday, 27 Jun 2015

KUCHING: Sarawak Cable Bhd expects its maiden 10MW mini-hydroelectric project in north Sumatra, Indonesia, to generate between RM25mil and RM28mil in revenue a year.

Managing director and chief executive director Aaron Toh Chee Ching said the project, which is due to completion and testing later this year, was scheduled to be commissioned in January 2016.

Sarawak Cable, the first foreign company to invest in a power plant project in north Sumatra, has a 78.3% stake in PT Inpola Mitra Elektrindo (IME) which owns the joint-venture hydro project together with Indonesian utility body Perusahaan Listrik Negara Persero (PLN).

Under a power purchase agreement, IME will sell the electricity generated from the project to PLN for 20 years, and the concession is renewable.

PLN has twice revised the tariff to an average of 1,160 rupiah per kilowatt hour (kWh) from the original average 7678 rupiah and then 968 rupiah per kWh.

A third revision could be on the card by mid-2016.

dle next year as an inducement for more foreign investments in power generation in north Sumatra due to the urgency to build up the generation capacity to meet the growing demand for power.

“Hopefuylly by end of this year,we can finalise the proposal to build two more 10MW hydro power plants there.By 2017,we hope to have 30MW power generation capacity,” he told Metro Sarawak after Sarawak Cable AGM last week.

He said Sarawak Cable was currently in negotiations with PLN on the PPA for the two proposed hydro projects.

“As the operational and maintenance costs of the hydro power plant is very low,a 10MW hydro power plant could provide profit of RM20mil a year based on tariffs of 37sen per kWh,” he added.

According to Toh,Indonesian president Joko Widodo had instructed PLN to build up new power generation capacity of 35,000MW in five years (7,000MW a year) to meet the high demand in view of the country’s rapid economic and industrial development.

PLN is set to import 230MW of hydro energy from Sarawak Energy Bhd,a substantial shareholder of Sarawak Cable,via west Kalimantan from early next year.

Toh said Sarawak Cable was eyeing power transmission line projects in Indonesia,including the proposed construction of two 500kV lines (each of length 1,000km ) from Aceh to Sumatra in five years.The group hopes to penetrate the Indonesian market in second half-2015 by supplying power cables to Jarkata as a start.

Sarawak Cable group,which has an order book of RM1.7bil,is awaiting the outcome of its bid for some RM2bil worth of new contracts.

Toh said most of the contracts that the group had tendered for were substation and transmission line projects to be undertaken by Sarawak Energy and Tenaga Nasional Bhd.

Last year,the group secured several major projects including KLIA-Salak Tinggi transmission line (RM14.67mil),Balingian coal-fired power plant (RM493mil) and Pengerang 275kV overhead transmission line from Pengerang cogeneration plant to Peninsula Malaysia grid and 275kV/132kV Pengerang substation project (RM257mil). One key on-going project of the group is the RM619mil Sarawak’s 500kV transmission line.


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