GE signs trio of Indonesia power pacts

GE has signed three power deals with Indonesia including the supply of a fleet of truck-mounted ‘mobile power plants’ capable of generating 500 MW of power.

PT PLN Batam, a subsidiary of state-owned electricity provider PT PLN, has selected GE’s aeroderivative gas turbine technology for the fast-track project.

GE will supply 20 TM2500 gas turbines (pictured), which are manufactured in the company’s facility in Ohio. The truck-mounted turbines run on dual-fuel and GE is currently installing four similar units in Indonesia in North Sulawesi. GE's TM2500 gas turbine

GE has also signed two joint co-operation agreements to evaluate the feasibility of developing and investing in power projects using combined cycle technology. The first is with PT Indonesia Power, a subsidiary of PT PLN, for a minimum power target of 500 MW, and the second is with independent power producer PT Cikarang Listrindo, for a minimum target of 1000 MW.

The deals were announced this week on the eve of Indonesian President Joko Widodo meeting US President Barack Obama.

The Indonesian president is making his first US visit since assuming office a year ago and the trip is part of an effort to foster closer commercial ties between the two countries.

Widodo is seeking to accelerate economic growth in the world’s fourth most populous nation by investing in infrastructure and boosting trade and his goals include increasing power generation capacity by 35 GW by 2019.

With more than 17,000 islands, Indonesia requires smaller and more localized power generation. Every 1 per cent rise in economic output in Indonesia increases energy demand by 1.8 per cent— a factor that Widodo and his predecessors in Jakarta have struggled to overcome in recent years. As a result, locals businesses have had to grapple with a growing number of blackouts.

The 35 GW increase that Widodo is seeking represents a massive 70 per cent increase to Indonesia’s existing 50 GW power capacity.

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