Baker & McKenzie’s member firm in Indonesia, Hadiputranto, Hadinoto & Partners (“HHP”), has represented Medco Power on a significant geothermal project in Indonesia.
Medco Power (Indonesia, “Medco”) entered into a Power Purchase Agreement (“PPA”) for the US$400m 2x55MW Ijen Geothermal Project (“Project”) in East Java with the Indonesian state-owned electricity utility, PT. PLN (Persero) (Indonesia, “PLN”).
With the world’s largest estimated geothermal resources and rapidly growing electricity demand, the Indonesian government is proactively laying groundwork to expand development of geothermal power plants. The Project is part of the Indonesian government’s electricity development program (the Fast Track Program II) and holds an important place for the future development of geothermal energy in Indonesia.
The Project is the fourth private-sector financed geothermal project to successfully conclude a PPA with PLN under the Government’s 10,000MW Second Fast Track Program. It demonstrates that both the Indonesian Government and PLN are very keen to see this this programme succeed within its intended timeframe. This proactive approach being adopted by Government is aimed at ensuring that Indonesia’s generation power demands are being met, whilst at the same time assisting the Indonesian Government in achieving its stated target of having 17% of the country’s power generation coming from renewable energy sources by 2025.
HHP have represented the Sponsors on all four of these projects which have signed PPAs to date.
The HHP team was led by Foreign Legal Consultant Luke Devine and Associate Nindya Novianty.
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