Business
trend:
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
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