Indonesia's Salu Noling 10MW Small Hydropower Station Officially Begins Commercial Operation

en.Wedoany.com Reported - On September 14, Kencana Energy of Indonesia announced that the Salu Noling small hydropower station, developed and operated by its subsidiary PT Tiara Tirta Energi, officially entered commercial operation on August 13. The project is located in Luwu Regency, South Sulawesi Province, with a total installed capacity of 10MW, consisting of 2 units of 5MW each. After the project was put into operation, Kencana Energy's total installed capacity increased from 55MW to 65MW.

Salu Noling adopts a run-of-river development model, using the natural flow of the Noling River to generate electricity, without building a large storage reservoir. The project's catchment area is approximately 438 square kilometers, and the regional average annual rainfall is approximately 2,600 millimeters. According to the company's estimates, after the project is put into operation, the annual power generation is expected to be approximately 56.94GWh, which can bring Kencana Energy up to approximately 11% in additional annual revenue.

The project has a power purchase agreement signed between PT Tiara Tirta Energi and Indonesia's state electricity company PLN, and is developed and operated under the BOOT model. According to the agreement, the project enters a 25-year operating period from the commercial operation date, after which transfer will be implemented as agreed.

Salu Noling entered the construction phase in the second quarter of 2024. As of the end of 2024, the project's construction progress reached 28%, higher than the planned progress of 21% at that time. The project was originally planned to complete construction and be put into operation in the second quarter of 2026, and ultimately achieved commercial operation on August 13.

Before entering commercial operation, the project's two units obtained operating permits on August 11. Among them, Unit 1 has an installed capacity of 5,800kW and a net available capacity of 5,750kW; Unit 2 has an installed capacity of 5,800kW and a net available capacity of 5,787kW. The relevant operating permits are valid until August 11, 2031.

Salu Noling is also included in the renewable energy project system under PLN's 2021-2030 Electricity Supply Business Plan, and the electricity generated is absorbed by PLN.