VPower Group announced that it has signed a memorandum of understanding (MoU) with the Nias local government to develop a gas power plant that generates up to 100 MW, for the sustainable development of the island as Indonesia's next tourist destination.
The MoU lays the ground work for power solutions that leverage liquefied natural gas (LNG) with a potential term of up to 25 years. The power project will be a first for VPower on this largest island off Sumatra.
Nias is among the least developed and pristine regions in the province of North Sumatra. It is also an emerging world-famous surfers' destination. Improving grid stability for the population of 750,000 in a sustainable manner will underpin the healthy economic development of the area.
VPower currently has power projects in Jambi, Pekanbaru and Kalimantan. This will mark the company's largest investment yet in meeting the power needs of Indonesia. The country currently has one of the world's largest demands for distributed power.
The MoU is between VPower Group and the Association of Indonesian Regency Government. Head of Nias Regional House of Representatives and local representatives of the Indonesian State Electricity Company PLN were also present.
"VPower has the proven technology to meet Indonesia's immediate power demands, and we'll continue to identify power solution strategies that address their power needs in way that's responsible to the environment too," said VPower Co-CEO Rorce Au-Yeung.