PLN And The European Union Agree To Build EBT Generation Infrastructure In North Sumatra And East Java

PT PLN (Persero) agreed to cooperate with the European Union, KfW Development Bank, and PT Sarana Multi Infrastruktur (Persero) or SMI (PLN).

PT PLN (Persero) has agreed to cooperate with the European Union, KfW Development Bank, and PT Sarana Multi Infrastruktur (Persero) or SMI for a large-scale pump storage hydropower new and renewable energy generation (EBT) project in North Sumatra and East Java.

PLN Finance Director Sinthya Roesly explained, later the European Union and KfW will provide technical assistance in the form of drafting feasibility study documents for the Indonesia Sumatra Pumped Storage project in Simalungun, North Sumatra and Indonesia Grindulu Pumped Storage in Pacitan, East Java with a total support for project preparation funding reaching around 6 million euros.

"In addition, PLN, PT SMI, and KfW have signed a Head of Agreement related to technical assistance for the development of the two projects, marking strengthening joint commitments in accelerating the development of EBT infrastructure," he said in a statement to the media, Tuesday, November 18.

Sinthya continued, these two projects will play an important role in strengthening the reliability of the national electricity system while increasing the capacity of renewable energy in the PLN network in accordance with the 2025-2034 Electric Power Supply Business Plan (RUPTL).

"Energy transition requires the support of all parties and requires an innovative and sustainable financing scheme. Through collaboration with various partners such as the European Union, KfW, and PT SMI, PLN can access various technical assistance potentials that allow PLN to increase capacity and competence in managing investment portfolios towards a low-carbon economy," said Sinthya.

Meanwhile, PLN Corporate Finance Executive Vice President Maya Rani Puspita expressed her appreciation for the financing support and technical cooperation from the European Union, KfW, and PT SMI.

"The pump storage project will strengthen the flexibility of the national electricity system while at the same time supporting the integration of renewable energy on a large scale," said Maya.

The Indonesia Sumatra Pumped Storage project will use Lake Toba as a lower reservoir and build an upper reservoir with a ring dam system. Investment in this project reaches around 582 million US dollars.

Meanwhile, the Indonesia Grindulu Pumped Storage project will have four units with a total capacity of 1,000 MW with an estimated investment of 1.08 to 1.3 billion US dollars. These two projects are part of the 3.4 billion euro Team Europe financing package focused on supporting Indonesia's energy transition program.