News & Update
Contract conclusion for a small hydroelectric power plant rehabilitation/Output improvement project in Indonesia and Business expansion to the "hydropower rehabilitation / Finance area"
We are pleased to announce that we have signed a contract for the rehabilitation and Output improvement of the existing 2×3.54 MW Karai-7 small hydro power plant in collaboration with Alamport Co., Ltd. (located in Chiyoda-ku, Tokyo, hereinafter referred as Alamport) in Indonesia.
The small hydro power plant Karai-7 is located in Sumatra, Indonesia, started operation in December 2016 and has been performing stably since then. Conversely, the type of turbine initially installed was with a low quality and was not optimized to suit the operation. Remarkably, by replacing it with an advanced turbine system delivered by the Japanese company "Fuji Voith Hydro", the maximum power output is expected to improve by 8.8% and the total annual power generation is likely to increase by 5.7%.
In fact, renewable energy in Indonesia currently accounts for about 13% of the electricity supply, and lately the government has announced its recent power supply plan that will increase the renewable energy to more than 23% by 2025. The estimated amount of renewable energy to be installed between 2021 and 2030 is set to be around 21 GW in total, of which hydropower will account for about 9 GW, or 42%. Consequently, Chodai and Alamport would like to actively contribute to the development of hydropower plants through rehabilitation and output improvement projects to meet the high expectations of the Indonesian government for hydropower generation.