Southeast Asia's energy majors pivot sharply to green power
https://asia.nikkei.com/Spotlight/Environment/Southeast-Asia-s-energy-majors-pivot-sharply-to-green-power2Southeast Asia's energy majors pivot sharply to green power
Renewables tapped to feed region's steep rise in power demand
YOHEI MURAMATSU, JUN SUZUKI and YUJI OHIRA, Nikkei staff writers
April 15, 2019 07:45 JST
BANGKOK/JAKARTA/TOKYO -- Southeast Asian energy companies, long dependent on fossil fuels, are rapidly turning to renewable energy to answer the mounting demand for electricity in the fast-developing region.
In Indonesia, StarEnergy looks to capitalize on native geothermal resources, made possible by the more than 100 active volcanoes that dot the island nation. At one project in West Java, steam produced by Mt. Salak passes through a pipeline to rotate power turbines. The only emissions at the plant are the milky white water vapors released by the plant's several chimneys.
StarEnergy is a subsidiary of Indonesian petrochemical conglomerate Barito Pacific. Through 2018, StarEnergy purchased assets from U.S.-based Chevron, including the Salak plant. StarEnergy also runs the Wayang Windu geothermal plant, one of the biggest in Indonesia. The company is capable of producing 875,000 kW of power, and plans to lift capacity above 1 million kW.
Indonesia's state-run utility PLN will likewise tap into the country's geothermal potential -- second in the world only to the U.S. -- to ease the domestic energy squeeze. PLN is buying up green power generated by independent players, such as the Sarulla geothermal power plant in Sumatra. An international consortium controlling Sarulla, formed in part by Japanese trading house
Itochu and
Kyushu Electric Power, signed a 30-year power purchase agreement with PLN.