KUALA LUMPUR: Gadang Holdings Bhd has started commercial operations of its nine megawatt (MW) mini hydropower plant in Lintau, Tanah Datar in West Sumatera.
The mini hydropower plant will generate a steady source of income over the long term, according to Gadang's wholly-owned Regional Utilities Sdn Bhd managing director Foo Mieng Yong.
Foo said the first 4.5 MW run-of-river hydro power house unit of the plant was successfully synced with state-owned utility firm Perusahaan Listrik Negara (PLN) distribution grid system in Balai Tangah, Lintau Buo, via a 4km overhead 20 kV transmission line after testing and commissioning were completed this year.
The plant, which uses water energy from the Batang Sinamar river upstream, has been meeting the power purchase agreement's (PPA) requirements for PLN energy output, according to Foo.
The unit's official commercial operation date (COD) was declared on July 7, he said.
Foo said the demand from the close-by districts of Lintau, Batusangkar, Payakumbuh, Salak, and Kambang can be met by the supply from the first 4.5 MW unit.
"For the second 4.5 MW run-of-river hydro unit, synchronisation to the PLN grid is scheduled in early August 2023, with COD at the month's end," he told the New Straits Times.
Gadang entered the hydropower industry in West Sumatera in June 2014 by acquiring a 60 per cent stake in PT Ikhwan Mega Power, the company in charge of the 9.0 MW hydropower concession.
Asian Utilities Private & Ltd, a wholly-owned subsidiary of Regional Utilities, owns 60 per cent of PT Ikhwan. The remaining 40 per cent equity is held by local investors.
The hydropower plant is constructed using the build, operate and own concept, based on a 15-year concessionaire PPA agreed between PT Ikhwan and PLN.
Work on the plant began in 2015, following the purchase of the land and authorisation for development, according to Foo.
The installation of the electromechanical equipment began in early 2019, and the power house's full electrical panel installation and the installation of the 20 kV transmission line were both completed in 2020.
Foo said there were delays to the project caused by social disturbance in land matters, a dispute over compensation, landslides, and extremely hard rock boulders in the waterway construction alignment.
He added that the project was also impacted by the efficiency and productivity of the construction workforce, the travel ban brought on by the pandemic, the availability of construction materials, and the lengthy lead time needed for construction activities.
"The weir construction and the 2,070-metre waterway were successfully completed in 2022," he said.