China National Energy Investment Group (CHN Energy), the leading coal and power producer in the country, has invested more than $3 billion in Indonesia's electricity industry, making it the largest Chinese power investor of the archipelago.
The group has funded three coal-fired power projects in Indonesia with a total investment of $3.12 billion. The three projects have a combined generation capacity of 3.1 GW, accounting for 8% of Indonesia's total.
Among the three projects is the Java No.7 Coal-fired Power Generation Project, an efficient and environment-friendly power plant with the largest installed capacity, the highest parameter, the most state-of-art technology and the optimal indicator in Indonesia's history of electric power development.
The power plant has two ultra-supercritical units with capacity of 1050 MW each. The No.1 unit was put into operation in December, 2019, and the second now has been already through the 168-hour trial run.
The Java No. 7 project, owned by CHN Energy's subsidiary China Shenhua Energy and Indonesia's state-owned power giant Perusahaan Listrik Negara's PJBI by a proportion of 7:3, will be fully handed over to PJBI after 25 years of commercial operation.
The project is expected to generate 15 TWh of electricity for the local community each year. Its power tariff is $42.1/MWh, about 40% lower than the average of $69.1/MWh in Banten province where the project is located, which can help users save about $548 million each year in electricity expenses.
From 2016 to 2018, China has been Indonesia's third largest investor. In 2019, China's direct investment in Indonesia reached $4.7 billion, surpassing Japan as the second largest source of foreign investment, only to Singapore.
CHN Energy, merged by the original China Guodian Group and Shenhua Group, was officially established on November 28, 2017. It engages in coal, thermal power, new energy, hydropower, transportation, chemical, technology and environmental protection, and finance. It ranked 108th in the Fortune Global 500 in 2020.
As of the end of 2019, CHN Energy had 19 projects under construction overseas, mainly distributed in 12 countries including Canada, Australia, the United States, South Africa, Indonesia, and Greece, involving wind power, thermal power, shale gas among other fields.
(Writing by Alex Guo Editing by Harry Huo)
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