JAKARTA (RambuEnegy.com) – An investor from Netherland is interested to develop a tidal energy, utilizing sea current in the east of Flores Island, East Nusa Tenggara province, a government official said.
Coordinating Minister for the Maritime Affairs Luhut Binsar Panjaitan told reporters Wednesday (Jan. 11) that the proposed tidal energy project is part of cooperation between Indonesia and Netherland.
“That has been discussed by the Dutch PM and Indonesian President. The tidal energy in the targetted area could generate up to 300 MW of power installed capacity,” Luhut said.
He said the financing scheme of the tidal energy is being discussed by the investor, in which 30% will be in the form of an equity of the investor and the remaining funds needed will be in the form of soft loan.
He however did not mention the name of the potential investor.
Over the past few years, there has been talks about developing tidal energy in Indonesia, but none has been materialized. Recently, an invesor from France in collaboration with local company is undertaking a study to develop tidal energy in the Sunda Strait.
Some observers however believe that as an archipelagic nation, in which large part of its area is sea, tidal or wave energy could be one of the most viable renewable energy in the future.
He said the government will set aside Rp10 billion to undertake feasibility study. He added the electricity tariff of the tidal energy is offered at 16 cent USD, however, the government wants the tariff to be lower.
Last year, Atlantis Resources has signed a memorandum of understanding with SBS to develop a 150 MW tidal stream site off Indonesia.
Under the agreement, Edinburgh-based tidal player Atlantis will work together with privately-owned international renewable energy developer SBS to establish a joint venture that would facilitate the tidal site development.
The total cost of this commercial array has been estimated at $750 million and will be constructed over a number of stages, Atlantis informed.
SBS has completed a feasibility study and the project will be supported by a 25-year power purchase agreement with the state-owned electricity company, Perusahaan Listrik Negara (PLN).
The 150 MW commercial array’s project sites in Indonesia will be located in the Bali Strait and Lombok Strait, and the the first 12 MW phase of the tidal stream site is expected to be operational by 2018, according to Atlantis.(*)