The projects consist of five mini hydropower plants (PLTMH) in North Sumatra and two hydropower plants (PLTA) in Aceh, according to the companies’ joint statement on Wednesday. The North Sumatra’s plants combined capacity is 42.98 megawatts (MW) and the Aceh plants’ is 467 MW.

“Indonesia has huge renewable energy potential,” said Terregra president director Djani Sutedja. “Terregra Asia Energy continues to conduct research and development to contribute toward meeting Indonesia’s renewable energy needs.”

Many studies predict Indonesia will miss its renewable energy commitment of a 23 percent green energy mix by 2025 at the current pace. A mere 9.15 percent of Indonesia’s energy in 2019 came from renewables, and several studies have predicted that Indonesia will miss the target.

Read also: RI to break long-term green energy promises at current pace: IESR

Terrega wrote that it has secured power purchase agreements (PPA) – the document that determines a developer’s income – with state-owned electricity monopoly PLN for the five mini plants in North Sumatra. Meanwhile, Terregra has finished feasibility studies and secured regional-level permits for the two plants in Aceh but there was no mention of their PPA status.

Djani added that the mini plants were expected to begin commercial operation 24 months after the start of construction while for the larger plants it would be 36 months. 

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