YTL Power wins $2.7bn contract to develop 1320MW power plant in Indonesia

22 December 2015 (Last Updated December 22nd, 2015 18:30)

YTL Power International has won a $2.7bn contract to develop a 1,320MW Tanjung Jati A coal-fired power plant in Cirebon, West Java, Indonesia.

power plant

YTL Power International has won a $2.7bn contract to develop a 1,320MW Tanjung Jati A coal-fired power plant in Cirebon, West Java, Indonesia.

The project is a part of the 30-year power purchase agreement (PPA) signed by YTL Power International’s 80%-owned subsidiary PT Tanjung Jati Power with the Indonesian utility PT PLN (Persero).

Under the PPA, power from the proposed plant will be supplied to the government-owned Persero.

This recently signed PPA is an amended form of the deal, for which the initial transaction was agreed in April 1997.

The coal-fired power plant will house two 660MW units and is expected to offer increased efficiency when operational.

YTL Power said in a statement: "The PPA will be for a term of 30 years, expiring in 2051 on the 30th anniversary of the anticipated commercial operation date of the plant."

"We are very much looking forward to working with PLN to get this project built and exporting much needed energy into the grid."

Prior to this, YTL Power has invested in 1,220MW Jawa Power project, with this being its second in Indonesia.

Indonesia expects to have 35,000MW of installed power generation capacity in the next five years to meet its rising demands.

YTL Power managing director Tan Sri Dr Francis Yeoh said: "YTL Power is pleased to be able to assist in realising [Indonesian] President Joko Widodo’s bold vision of putting 35,000MW on the grid in the next five years.

"We are very much looking forward to working with PLN to get this project built and exporting much needed energy into the grid."


Image: Indonesia plans to have 35,000MW of installed power capacity in next five years. John Kasawa / FreeDigitalPhotos.net.