JAKARTA : Indonesian power company Kayan Hydro Energy (KHE) plans to start commercial operation of its first hydropower plant unit with capacity of 900 megawatts in 2026, company executives said on Thursday.
Kayan Cascade project, on Borneo island, is designed to generate up to 9 gigawatt of power upon completion with a total investment of around $17.8 billion.
Some early development had taken place in recent years and KHE aimed to start construction of a dam diversion channel in 2023, KHE chief executive Andrew Suryali told reporters.
KHE signed an agreement with Japan’s Sumitomo Corporation on Thursday to develop the project, Andrew said. The partnership would include investment participation from Sumitomo and transfer of technology, he added without elaborating further.
Power from the project would be used for a nearby green industrial park being developed in North Kalimantan province and other projects on Borneo island, including Indonesia’s planned new capital city Nusantara.
“The total capacity is nine gigawatt, very big hydropower, so yes we can supply to the state utility company … and of course the new capital city,” Satoshi Matsui, an official with Sumitomo Corp said, adding its partnership with KHE might include promoting the green industrial park to Japanese manufacturers.
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