The Jakarta Post
Indonesia’s second largest coal producer PT Adaro Energy, through its subsidiary PT Adaro Power, plans to complete its first commercial renewable energy power plant with a battery capacity of 6.5 megawatts (MW) to electrify two islands in Central Sulawesi, Paku and Umbele Morowali.
The renewable energy project is a joint venture with French electricity company Électricité de France (the EDF Group).
Adaro Power vice president Dharma Djojonegoro said on Wednesday that the joint venture with the EDF Group was a hybrid off-grid project that combined biomass, solar photovoltaic (PV) and battery storage that would provide a 24-hour electricity supply.
“The project is still in the feasibility study [stage] to determine whether it is sustainable in terms of operation or not. We expect the [study] to finish in the next two to three months, and hopefully we can start installing the facility next year,” he said.
Darma said once the power plant was operational, the electricity rate would be more affordable than the existing rate for electricity supplied through a diesel generator.
“We didn’t want to make a big profit from this, but it’s not a corporate social responsibility program neither. Yet, the project has to be profitable so it will be sustainable.” he said.
Research by Denmark’s environmental support program phase 3 (ESP3) shows that customers on three islands of the Karimunjawa Islands archipelago, located off the northern coast of Central Java, pay Rp 2,500 (17 US cents) per kilowatt hours (kWh) for electricity produced by a diesel generator under a government subsidy program.
Electricity supplied from a diesel generator generally costs from Rp 8,970 to Rp 10,761 per kWh. (bbn)