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Wärtsilä and PLN sign cooperation agreement

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Hydrocarbon Engineering,

Wärtsilä and PT Perusahan Listrik Negara (PLN), the state power company of Indonesia, have signed a Memorandum of Understanding (MoU). The MoU was signed in conjunction with Indonesian State Owned Enterprises Minister Rini Soemarno's visit to Finland. With this agreement, both parties agree to cooperate on the development of 500 megawatts (MW) of power generation solutions and related small scale LNG storage and regasification infrastructure in Indonesia. This power generation is forecasted to be contracted and installed as several projects during the next two years. Another major aspect in this agreement is the emphasis put on further developing local Indonesian capability in power projects execution, knowledge transfer and development of local skills.

Thanks to a rapidly developing economy, the standard of living in Indonesia has significantly improved in recent years. Supporting further economic growth requires large investment in the development of infrastructure, particularly in power generation. An additional priority of the Indonesian government is to ensure equal availability of reliable power supply through the entire Indonesian archipelago. In order to reach these targets, an ambitious programme of adding 35 000 MW of power generation capacity to their system by 2019 was started in 2015. The 500 MW of power generation capacity covered in the MoU will help PLN in implementing this programme.

"Wärtsilä's proven capability to deliver high quality, efficient, and flexible power plant solutions on a fast-track basis is perfectly suited to the requirements of Indonesia" says Javier Cavada, President Wärtsilä Energy Solutions. "With this MoU, Wärtsilä is also pleased to express its strong commitment towards the development of Indonesian manufacturing skills and knowledge transfer as it is the basis for a mutually beneficial and long relationship."

Wärtsilä has been present in Indonesia for more than 30 years during which it has installed more than 3GW of power generation capacity. Some of the recent projects using Wärtsilä's internal combustion engine technology are the 200 MW dual fuel Pesanggaran plant, 184 MW Arun power plant and the Bangkanai 150 MW power plant.

Adapted from press release by Rosalie Starling

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