Kayan Cascade Hydropower Plant And Energy Transformation

The signing of the cooperation agreement between PT KHE and Sumitomo Corporation witnessed by Coordinating Minister for the Economy Airlangga Hartarto and Japanese Ambassador Mr. Kanasugi Kenji at the Fairmont Hotel Jakarta, Thursday (6/10). (Doc VOI)

PT Kayan Hydro Energy has agreed to cooperate with Sumitomo Corporation to build the Kayan Cascade hydropower plant. The signing was held on Thursday, October 6 at the Fairmont Hotel Jakarta.

The signing of the cooperation was carried out by the President Director of PT Kayan Hydro Energy (KHE) Andrew Sebastian Suryali and the Head of Infrastructure Business Unit Asia & Oceania Sumitomo Corporation Satoshi Matsui, witnessed by Airlangga Hartarto and the Japanese Ambassador to Indonesia Kanasugi Kenji. The signing ceremony itself was lively. It was attended by dozens of international and national media.

In his remarks, the Coordinating Minister for the Economy Airlangga Hartarto said that the development of the Kayan Cascade hydropower plant had become President Jokowi's concern, and had become part of Indonesia's commitment to achieve net zero emission (NZE) by 2060. Airlangga said, the government is targeting 23 percent of all energy sources in Indonesia to come from renewable energy in 2026.

He hopes that by cooperating with Sumitomo Corporation, PT KHE can also cooperate with various other downstream industries.

The Presidential Chief of Staff, General Purnawirawan Moeldoko, who was also present, appreciated the sustainability of the Kayan Cascade Hydroelectric Power Plant (PLTA) development project, located in North Kalimantan. According to Moeldoko, the construction of the Kayan Cascade hydropower plant is the Indonesian nation's commitment to green energy. Moeldoko said that the Kayan Cascade project in North Kalimantan is a monumental project for Indonesia to show the world that Indonesia has a strong spirit in energy transformation.

Meanwhile, Satoshi Matsui in his speech after the signing said that Sumitomo was honored to have contributed to Indonesia's growth through historical developments in the electricity infrastructure sector.

He believes that the Kayan Cascade hydropower plant will form the basis of Sumitomo's next history that will contribute to Indonesia's national energy transition program for sustainable growth in the future. This is of course to increase renewable energy in the national energy mix, and to reduce carbon emissions in accordance with national commitments in the Paris Agreement and COP26.

Therefore, Sumitomo will develop the Kayan Cascade hydropower plant together with PT Kayan Hydro Energy to support the commitment of the Government of Indonesia.

As stated by the President Director of PT KHE Andrew Sebastian Suryali, the electricity generated by the Kayan Cascade hydropower plant will supply the green industrial area developed by PT. Indonesia Strategic Industries (PT ISI), and electricity needs in Kalimantan Island in general.

With the construction of the Kayan Cascade hydropower plant, the attractiveness of this green industrial area will be even stronger for all industrial circles who are concerned about reducing carbon emissions.

The Kayan hydropower plant built by PT KHE utilizes the area along the Kayan river and consists of 5 dams with 5-6 units of generating turbines per dam. The first stage of the Kayan hydropower plant has a capacity of 900 Megawatts (MW), the second stage is 1,200 MW, the third and fourth stages are 1,800 MW each, and the fifth stage is 3,300 MW.

The Kayan Cascade hydropower project has been running since 2011, and has completed all the necessary permits. Currently, PT KHE is carrying out the initial infrastructure construction of the dam. It is estimated that in 2023 it will continue to build supporting infrastructure for the dam, and a diversion channel or diversion channel which will become the first rung in the cascade ladder.

So, if the Kayan Cascade hydropower plant is completed, perhaps Indonesia will be the country most prepared to face net zero emissions (NZE). Moreover, with an investment value of more than 17 billion US dollars, the Kayan Cascade hydropower plant will become the largest hydropower plant in Southeast Asia. (*)