Indonesia plans to build power plants powered by peat land in West Kalimantan province with the capacity of 60 megawatts, the governor of the province said on Wednesday.
At a press conference after meeting with Vice President Jusuf Kalla, Governor Usman Jafar said that the project was expected to be complete at the beginning of 2008.
He said experts from Finland, which has long experienced using such technology, would be involved to handle the projects.
"We plan to build two (projects, each with capacity of) 30 megawatts, generated by peat land," said Jafar.
The governor revealed that the province has huge potential of the peat land, and in one regency of Pontianak, it has capacity of the peat land of 2.5 millions meter cubic in 100,000 hectares.
The investor of the projects is the Sebukit Power Corp., he said.
In addition, the governor said four other projects, establishing coal-powered electric generators as part of the government plan of building 10,000 megawatt power plants, would also be delivered in 2008.
He said two of the four projects, each with a capacity of 55 megawatts, will be built by the stated-owned electric company of the PLN with financial assistance from the Chinese government.
Two others, with a capacity of 25 megawatts each, will be built by the local company Meta Exi corp., said Jafar.
The governor said that currently his province has been lack at least about 40 megawatts electricity.
Indonesia will reduce its dependency on fuel oil in generating power, according to the vice president.
The country's oil production has been declined due to aging of some oil wells and the slow of finding new wells.
Indonesia's power plants have a total capacity of 25,000 megawatts, but the demand grows by 6 to 7 percent or 2,000 to 3, 000 megawatts annually, according to Mines and Energy Minister Purnomo Yusgiantoro.
Indonesia's electricity sector provides a huge opportunity for investment, but the country only be able to meet 55 percent of the demand in the sector, said Yusgiantoro.
Yusgianoro said that to meet the demand, Indonesia plans to build power plants with a total capacity of 25,000 megawatts.
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