Asian financial firm Armstrong Asset Management has announced its plan to spend up to US$22.5 million in developing and operating a 50 MW portfolio of mini-hydroelectric power plants in Indonesia.
The portfolio is being developed by construction company PT Nusa Konstruksi Enjiniring Tbk (NKE), which is a subsidiary of PT Inti Duta Energi (IDE).
“We are very pleased to announce this partnership with NKE Group,” Armstrong partner Michael McNeill said. “We look forward to building on our excellent working relationship with the IDE team, whose project development and technical capabilities are well recognized in the mini-hydro market Indonesia.
“Together with the NKE group’s proven strong project management, engineering and construction capabilities, we expect to deploy our capital rapidly to deliver high-quality mini-hydro assets to support the sustainable development of Indonesia.
NKE currently has a portfolio of more than 50 MW of small hydro projects in various stages of the permitting process, Armstrong said, with the first — a 5 MW plant in Java — expected to be operational by the second quarter of 2016. An additional trio of plants in Sumatra with a combined output capacity of 21 MW are planned for completion by the end of that year.
“We share a commitment to the potential and the need for rapid growth in the development of clean, efficient and low-risk energy solutions,” IDE President Director Djohan Halim said. “The experience of the Armstrong team in small-scale infrastructure investment in South East Asia is a powerful complement to our activities in Indonesia.”
HydroWorld.com reported in April that Armstrong had partnered with Mandiri Investment Management in a co-investment strategy for small hydroelectric development in Indonesia.
Indonesia is particularly appealing for small hydropower investments, Armstrong said, due to a recently revised feed-in tariff system and the country’s desire to cultivate its renewable sector.
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