UK-based Andalas Energy and Power has commenced the next steps in advancing its plans to develop a portfolio of wellhead independent power projects (IPPs) targeting 250-500MW of installed capacity fired with gas from proven fields.
According to CEO David Whitby, the firm is pioneering the concept of rolling out wellhead IPPs using established technologies to help tackle Indonesia’s energy crisis at the local level.
“In our view, the recent regulatory changes demonstrate that the government recognizes that these projects can make a significant contribution towards achieving its 35,000MW target of new capacity and delivering affordable power to the people of Indonesia,” he said.
Whitby added that being a first mover has the potential to generate significant rewards for shareholders as the group looks to rapidly build an initial portfolio targeting 500MW of installed capacity.
He said the new regulations and Decree are the first time wellhead IPPs have been recognized as a distinct class of project and given special consideration outside the usual planning and approval cycle.
“The Decree prioritizing wellhead IPPs opens the door for Andalas and our partner Pertamina to identify and propose further projects for approval by the Minister, capitalizing on the progress made on our recently announced project pipeline,” he concluded.
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