Aboitiz Power Corp. (AboitizPower), in line with its overseas expansion plans, has signed a deal for hydropower feasibility studies in Indonesia.
The firm told the stock exchange that it would be participating in studies to explore and develop a potential 127-megawatt (MW) hydropower generation project along the Lariang River in Central Sulawesi. It will be partnering with SN Power AS and PT Energi Infranusantara.
The project company, PT Auriga Energi, has been awarded a basic license to develop the project and is currently conducting pre-feasibility studies, AboitizPower said in the disclosure.
Besides the hydropower project, AboitizPower has also expressed interest to participate in
the exploration and development of a potential 100-MW greenfield geothermal plant in East Java, Indonesia.
The venture will be undertaken through AboitizPower International Pte. Ltd., a wholly-owned Singapore-based subsidiary that has entered into an agreement with PT Medco Power Indonesia.
PT Medco Cahaya Geothermal, a subsidiary of PT Medco Power Indonesia, has been given the concession to develop the project, currently in the resource validation and exploration stage.
AboitizPower CEO Erramon Aboitiz has described Indonesia as a prime location for the firm’s overseas ventures, noting its demographic similarities with the Philippines.
But Aboitiz also said the company would not be limiting itself to Indonesia and was looking at other Southeast Asian countries like Vietnam and Myanmar.
AboitizPower, the power unit of Aboitiz Equity Ventures, is one of the biggest power players in the Philippines. It has a power generation capacity of around 2,400MW to date plans to increase this to 4,000MW by 2019.
AboitizPower shares closed at P42.70 yesterday, up 1.18%.