Kyushu Electric Power will start the geothermal generation business in Indonesia in alliance with Itochu. A special purpose company (SPC) will be founded, and each of the two companies invests 25% in the SPC. Total cost of the project is estimated at 100 billion yen, 70-80% of which will be financed by Japan Bank for International Cooperation. Revenue from power selling will be used for reimbursement. The construction will start in April 2014. The generation capacity will be 330,000 kW, and the planned geothermal power station will be the largest one in Indonesia. Three generators will start operation on after another toward the end of 2016, and all generated amount will be sold to the Indonesian state-run electric power company PLN. Indonesia has about 150 active volcanoes and the second-largest resources for geothermal generation following the U.S. The Indonesian government has laid down a plan to increase the capacity of geothermal generation seven times over the level in 2012 to 9,500,000 kW in 2025.
Kyushu Electric Power is currently operating a geothermal generation plant with a capacity of 110,000 kW in Oita Prefecture. It has an integrated technology in geothermal generation, and one of its subsidiaries is excellent in technology to explore the resources and extract steams effectively and efficiently. Demand for electric power development has been growing bigger in Asia and Africa, and Kyushu Electric Power plans to develop foreign market with its accumulated technology and know-how. Three Japanese companies, Mitsubishi Heavy, Toshiba, and Fuji Electric, has 70% in the world geothermal generation power plant market. It is likely that they can get orders for equipment in the Indonesian project. It has become an important issue for electric power companies how to develop the market in developing countries that have growing power demand.
The project site
The geothermal generation plant
operated by Kyushu Electric Power