The first unit of a coal-fired power plant in Cirebon, West Java with 660MW capacity can now help supply electricity to Bali and Java.
Energy and Mineral Resources Minister Jero Wacik launched the US$850 million unit.
The plant is among Indonesia’s first to use supercritical-boiler technology that consumes coal more efficiently and produces less carbon dioxide, is expected to supply 5,500 gigawatt-hour of electricity to Bali and Java per year or around 4 percent of the electricity supply in the region.
“We hope that it [the unit] can also increase confidence from the investors, which will boost the economy in the region,” said Jero.
The power plant project was initiated by privately owned company PT Cirebon Electric Power under the independent power producer scheme.
Japan-based Marubeni Corporation owns a 32.5 percent stake in CEP, followed by Korea Midland Power Co with 27.5 percent, Korea-based Samtan Co. Ltd with 20 percent and Indonesia’s publicly listed Indika Energy.
State utility firm PT PLN will buy the electricity from the power plant at a price of 4.43 US cents per kilowatt-hour.