P T PLN Indonesia Power (PLN IP), a subholding of state electricity company PT PLN, invited Japanese investors during the Japan RE Invest Indonesia 2024 event to join its decarbonization efforts by investing in hydropower projects, known as the Hydronesia Project, throughout Indonesia, specifically in Kalimantan, Java, Bali and Sumatra.
To support the government in achieving its net zero emission (NZE) target by 2060, PLN IP is committed to accelerating the development of renewable energy, focusing on hydropower, geothermal, wind, and solar energy. By 2030, PLN IP plans to add 9 GW of power capacity, with approximately 6 GW coming from renewable energy. Of this, 1 GW comprises 13 ongoing projects, the majority of which are solar power plants, and one is a wind farm project. With the Hydronesia project, PLN IP seeks partnerships with co-developers to jointly conduct hydropower studies and accelerate the development of ready-to-execute hydropower projects.
PLN IP is inviting partners for the Hydronesia project under a proposed ownership scheme of 51% allocated to PLN IP and 49% to the partner. The proposed ownership scheme, however, remains open for negotiation. The funding scheme for Hydronesia will be supported by 70% project financing. PLN IP offers three projects under the Hydronesia project. They are the Tanjung Sakti hydropower plant in South Sumatra, the Jatiluhur pumped storage plant in West Java and the Tabang hydropower plant in East Kalimantan, with a combined capacity of 1,045 megawatts (MW).
