PT Kencana Energi Lestari Tbk (KEEN) won the tender for the procurement of electricity Independent Power Producer (IPP) Pakkat 2 Hydroelectric Power Plant (PLTA) by PT PLN (Persero). This decision was contained in the Letter of Intent (LOI) dated May 11, 2026.
Kencana Energi Lestari Finance Director Giat Widjaja said that the Pakkat 2 HPP project has a capacity of 45 MW and will be KEEN's largest capacity project to date.
"The Pakkat 2 Hydroelectric Plant will be built in Pakkat District, Humbang Hasundutan Regency, North Sumatra," said Giat in a statement to the media, Wednesday, May 13.
Giat said this success strengthens KEEN's position as one of the national renewable energy developers that are actively expanding their green plant portfolio in Indonesia.
With the addition of the Pakkat 2 hydropower project, he continued, the installed capacity of the Company's power plant is projected to increase significantly from the current 69 MW to 114 MW after the project is completed and put into commercial operation.
"The Company's management said that this project is part of KEEN's long-term strategy to increase its contribution to the development of national clean energy as well as supporting the government's energy transition program towards a more environmentally friendly energy mix," he continued.
The Pakkat 2 HPP is estimated to require an investment of around US$ 116 million with a target construction period of approximately four years. Currently, the Company is still waiting for the signing of the Power Purchase Agreement (PPA) with PLN before entering the construction phase.
"KEEN management believes that this new project will further strengthen the Company's renewable energy portfolio, especially in the hydropower sector which is one of the main focuses of the Company's business development," said Giat.
With this appointment, he continued, KEEN is optimistic that it can continue to strengthen its role as a sustainable national green energy company, as well as supporting Indonesia's efforts to achieve net zero emission targets and expand the use of clean energy in the future.
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