New plans by Indonesia to construct more than a 1,500 MW coal power plant are set to be unveiled on Thursday, with the project’s construction expected to boost the country’s coal-based economy by at least $3 billion a year.
The Indonesian state-owned Indonesia Power and Gas Co said it planned to build the 1,650-megawatt (MW) plant at Kedah, a township about 40 kilometres (25 miles) northwest of Jakarta.
The state-run broadcaster said the plant, which will be built in the southeastern province of Borneo, would generate about 1,400 megawatts of electricity.
“The company will be the first to have the power plant installed in Bornean Indonesia,” Indonesian Prime Minister Joko Widodo said in a statement.
“This is an important milestone in Indonesia’s energy transition and will be a positive development for Borneans.”
Borneo is a major coal producer in the country, and has long been a target of Indonesia’s coal industry.
Indonesia is also building a large solar power plant at Borneu island in the Borne region of Indonesia, which is also expected to generate about 900 megawatts.
Indos West Africa Region Indonesia is also planning to expand coal-dependent energy production in the region by building a new coal-powered power plant, according to the Jakarta Post newspaper.
The Jakarta Post said the coal plant would be built by a consortium led by the Indonesian private-equity giant Hapag-Lloyd.
The project is expected to be completed in 2021.
The news comes as Indonesia seeks to modernise its economy, which relies on a coal-fueled economy, and attract foreign investment.
It is also an attempt to increase the countrys coal-free electricity production, which currently relies on imported coal, in a bid to tackle air pollution and climate change.
Earlier this month, Indonesia approved a plan to import coal from Australia for power generation in an effort to reduce its reliance on imported fossil fuels.
Indias coal-burning power sector has been one of the biggest challenges in Indonesia, with more than 7,000 coal-burners operating.
Indians have to pay $2 per tonne of carbon dioxide to emit the toxic carbon dioxide and a $1 per ton of CO2 to export the gas.