Responding to fast rising electricity demand in Indonesia, Japan’s diversified Marubeni Corporation plans to construct a 1000 MW critical coal-fired power plant with an estimated investment of up to US$2 billion in Cirebon, in West Java, close to its existing power plant. Assuming that Marubeni secures a permit from the Energy and Mineral Resources ministry, work is expected to start by the end of this year.

Development of the plant would be carried out through its subsidiary, Cirebon Electric Power (CEP), and one other, unnamed, Japanese investor.

At present, CEP operates a 660 MW coal-fired power plant in Cirebon. Marubeni owns a 32.5 % stake in CEP, while the remainder belongs to Korea Midland Power Corporation (27.5 %), Korea’s Samtan Corporation Ltd (20 %) and local firm PT Indika Energy (20 %). Under an independent power producer mechanism, Marubeni would sell its output to state power firm PT PLN.

Marubeni also plans to build a 220 MW geothermal power plant in Rantau Dedap, South Sumatra. The power plant will be constructed by Supreme Energy Rantau Dedap (SERD), a company it jointly set up with local player Supreme Energy and France’s GDF Suez SA. It would supply electricity to PLN starting from 2016 under a purchase agreement sealed in November last year.