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Power firm to build 25 micro hydropower plants

Anticipating a possible energy crisis in Central Java, state power producer PT Indonesia Power will optimize its eight current micro hydropower plants and build another 25

Agus Maryono (The Jakarta Post)
Purwokerto
Tue, August 19, 2008

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Power firm to build 25 micro hydropower plants

Anticipating a possible energy crisis in Central Java, state power producer PT Indonesia Power will optimize its eight current micro hydropower plants and build another 25.

The general manager of Indonesia Power's Mrica unit in Banjarnegara, Harlen, said Friday, based on the company's survey in early 2008, his unit had found at least 25 potential building sites in Central Java.

"We have successfully built eight power plants in Banjarnegara and Banyumas regencies each capable of producing 1-2 megawatts of electricity," Harlen said, adding three were in Ketenger village, Baturraden district in Banyumas regency, the other five in Siteki and Plumbungan villages, Rakit district in Banjarnegara regency.

"We are building another plant in Ketenger village which we hope will be up and running next year," he said.

Harlen said each plant could supply power to 2,000 homes in one village.

Banjarnegara is suitable for developing micro hydropower plants because of its many waterfalls.

Harlen said the company had found 14 potential sites in that regency alone.

"The important thing for any micro hydropower plant is a waterfall or spring with continuously flowing water, even when there's drought, and Banjarnegara is just the place," Harlen said. He added the company's limited budget created financial obstacles. About Rp 30 billion (US$3.3 million) is required to build each unit.

"To overcome the problem, we have proposed to the relevant administrations they work together with us to build the plants through profit sharing.

"We sent a proposal to the Banjarnegara administration but have not yet gotten any response," he said.

Harlen told journalists constructions cost would be cofunded by PT Indonesia Power and the local administration under the profit-sharing proposal.

The company would later manage the operation of the plant. The proportional profit sharing would be based on the agreement between the company and the administration.

"We also open our arms widely to any possible cooperation offered by private or foreign investors. We may accept them if there is no response from administrations here," said Harlen.

"The project suggests good prospects and profit as many power plants are now facing problems due to sedimentation and fuel shortages."

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