Indonesia has signed an agreement for the development of a wind-powered electricity generating plant of 60 megawatt capacity in South Sulawesi, Indonesia's Antara news agency reports.
"Twenty-one wind turbines will be set up, each with a capacity to produce 3.5MW electricity. In total, 60MW of power will be generated. The construction is expected to be completed by the end of 2017," State Enterprises Minister Rini Soemarno said in Copenhagen, Denmark.
The power purchase agreement was signed by business director for Sulawesi and Nusa Tenggara, Machinson Masri, on behalf of Indonesias state-owned power company PT PLN and Tim Russel, director of Equis Indonesia.
Danish company Vestas Wind System will be responsible for the construction and supply of turbines.
The PLTB project will be the biggest wind-powered electricity generating project in Indonesia, Rini added.
She stated that as per the cooperation agreement, it would bring investment into the country and government will not have to contribute any resources. As of now, installation and construction were still being funded through foreign investment.
Equis director for Indonesia, Tim Russell, said the total investment for the development of PLTB will be between US$130 and US$140 million. The turbines at the PLTB would be the first assets owned by Equis in Indonesia.
The construction process is expected to take 18 months, and there are plans to carry out other projects in other regions in Indonesia.
PT PLNs corporate director Nicke Widyawati said the price of the electricity from the project has been agreed to at Rp10.89 per KWH, which is very competitive.
"Indonesia has a lot of potential for wind energy, such as in West Java, which can yield between 250MW and 400MW of power," Nicke added.
Denmark's ambassador to Indonesia Casper Klynge said the agreement was a milestone in making a transition to clean energy usage in Indonesia.
The agreement is expected to open the doors for other cooperation agreements in Indonesia.
"The agreement was made possible because of close cooperation between the governments of Indonesia and Denmark as well as private parties. Denmark is happy to be able to help the government of Indonesia to meet its target of 35,000MW electricity supply," he underlined.
The project is also expected to increase the component of renewable energy in the total national energy supply to up to 23 percent.
At present, renewable energy accounts for five to six percent of total supply. The Indonesian government decided in 2015 to reduce carbon emissions by up to 29 percent by 2030.