The Indonesian government has launched the construction of the 1,375 MW Mentarang Induk hydropower plant, which will be located in the North Kalimantan region on island of Borneo, where it will be linked to an industrial area housing electric vehicle and battery plants, as well as aluminum and petrochemical facilities.
The US$2.6bn hydropower plant is being developed by PT Kayan Hydropower Nusantara (PT KHN), a joint venture between Indonesian companies PT Adaro Energy Indonesia and PT Kayan Patria Pratama Group, and by Malaysia’s Sarawak Energy. Construction is expected to take seven years, with commissioning as of 2030.
At the end of 2021, hydro represented 9% of Indonesia’s installed capacity with 7.3 GW and 8% of its power production with nearly 25 TWh. The country currently has 3.5 GW of hydro capacity under construction and 24 GW under development. Indonesia is a major thermal coal producer and relies on it as its main source of power but has pledged to reach net-zero emissions before 2060.
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