Partners break ground on 9.7-MW Datara small hydroelectric project in Indonesia

A three-party joint venture recently broke ground on the 9.7-MW Datara small hydropower plant in Indonesia’s South Sulawesi province, according to a release from partner ISDN Holdings Limited.

The US$20 million project is being developed by ISDN via its Indonesian subsidiary, PT SDM, which owns 49% of the project, and PT Bukit Lau and Gowa Perusda, which own 31% and 20%, respectively.

The Datara plant is expected to take between 18 and 24 months to complete, with funding coming from a combination of debt and equity financing.

The project should have an annual revenue of about $5.3 million, based on Indonesia’s recently revised feed-in tariff rates and operating costs around $0.06 per KWh.

Indonesia has been particularly appealing for small hydropower investments in recent months, with the country’s government taking active measures to reduce its reliance on fossil fuels. reported in May that Iran had signed an agreement with Indonesia for the development of 48 small plants in indonesia within the next five years, while a partnership between financial groups Mandiri Investment Management and Armstron Asset Management announced last April has commited to investing in the country’s small hydro sector.

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Michael Harris formerly was Editor for

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