Viron Energy to Build Wind Power Plant in Indonesia

Muhammad Sofyan, Head of PLN Renewable Energy Division, has stated that the project has received approval from the Energy and Mineral Resources Ministry and the firm was waiting for a formal consent from the ministry to commence the project. He mentioned that an agreement will be signed with the company and the entire construction will be completed by 2012. He said that the power generated by the plant will be procured by PLN at Rp 820 per kilowatt-hour. He added that the price is nominal since the power production cost from oil-based fuels is expected to reach a price of Rp 2,400 per kilowatt-hour.

Sofyan mentioned that the location of the power generation site is ideal for wind power generation since the speed of wind in the location is around 6m per second. He added that the preliminary stage of the plant will produce power of 10 megawatts.

According to Luluk Sumiarso, Director General for New and Renewable Energy and Energy Conservation at the Ministry, mentioned that other than the wind farm project, the government has planned to offer three letters by next month, enabling PLN to procure electricity from companies producing geothermal energy.

Luluk stated that the government would support energy projects in rural regions to attract private investors. He added that they have decided to develop several solar power plants in rural regions at both the household and community scale and the Sukabumi wind power project can bring in additional investment.