Huadian starts work on Indonesia power plant

BALI, Indonesia -- China Huadian Group Co, one of China's five largest state-owned power generation enterprises, started construction of a coal-fired steam power plant in Indonesia's Bali province on Tuesday, in a bid to ease the island's electricity shortage.

The new facility, with a total investment of up to $638 million, sits in the north coast of the island and 120 km north of Bali's capital Denpasar. Phase I of the plant has an installed capacity of 3x142MW and is expected to put into use in the first half of 2014.

"The independent power plant will cut the island's electricity deficit and increase the stability of the grid," said Deng Jianling, Vice President of China Huadian Group, on the commencement ceremony.

The new plant, which is equipped with clean and highly effective coal-fired power generation technology, is expected to be the biggest power producer in the island on completetion, according to Deng.

Henky, representative from Indonesian state utility Perusahaan Listrik Negara said on the event, the poor infrastructure in Indonesia, especially the insufficient supply of electricity, has been the main hurdle to the country's economic development.

Indonesia, the biggest economy in Southeast Asia, is current facing an electricity deficit.

"Investment from China is very important for the country's development on infrastructure sector," he added.

China has invested more than $7 billion in Indonesia's power and infrastructure sectors since the establishment of the strategic partnership between the two countries in 2005, according to Chinese embassy to Indonesia.

China Huadian Group, serving as an independent power producer in this project, currently owns two controlling thermal power plant in Indonesia, the other one is in Batam.