Tata Power wins Indonesian renewable deal

The Indian power firm is part of a consortium that has won a bid to develop a 240-megawatt geothermal power plant in Northern Sumatra, Indonesia. The project could cost more than $800m and is expected to be completed by 2015.

A consortium led by Tata Power, an Indian power company, has won a bid to develop a 240-megawatt geothermal power plant in Indonesia, the company said in a statement.

Tata will own a 47.5 percent stake in a special purpose vehicle that will build the Sorik Marapi geothermal power plant in Northern Sumatra, Indonesia. Other consortium members include Australian Origin Energy (47.5 percent) and Supraco Indonesia (5 percent).

The total cost of the project is expected to range between INR29 billion (€484.3 million; $621.5 million) and INR38 billion (€634.6 million; $814.4 million), since it will involve building units of various sizes, a source close to the company told Infrastructure Investor. The source, however, refused to give any financing details for the project. Tata said the project is due to be completed by 2015.

Prasad R Menon, managing director at Tata Power said: “Tata Power has a strong mission to achieve at least 25% of its generation portfolio through renewable sources of energy by 2017, geothermal energy being one of the prime renewable growth engines.”

Tata Power is an Indian private sector power firm with an installed generation capacity of over 2900 megawatts and investments in hydro, thermal, solar and wind energy. The company also has a 10 percent stake in Geodynamics, a listed Australian organization specializing in geothermal energy.

Indonesia is expected to have approximately 27,000-megawatts of potential conventional geothermal resources.  The country currently has 1196 megawatts in geothermal generation in operation.