Lines of Business


Overview

MedcoEnergi’s power business activities cover power producer and power project support services provider. Its first penetration into the power generation business came in 2004 with the operation of Panaran I, the Company’s first gas fired power plant on Batam Island.

Today, MedcoPower has become the leading developer and operator of small-to-medium size Independent Power Producer (IPP) in Indonesia and the power project services provider with business activities including Operating and Maintenance (O&M) power plant services, as well as project Engineering, Procurement and Construction (EPC) and power plant Project

Development and Management.

This business is operated by an effective and efficient management system, with a lean organizational structure, allowing Management to maintain intensive communications and to quickly respond to prevailing conditions, in order to maintain an uninterrupted supply of electricity. MedcoEnergi’s power plants are also supported by highly skilled and professional employees with 5-to-20 years experience in various related fields, including electrical power generation, plant operation and maintenance, and project development and management

In line with MPI's MedcoPower’s commitment to provide solutions for the Nation power supply shortage needs, while also preserving the environment, the Company has designed its power producer business growth plan to focus in generating electricity from green and renewable resources. The Company is currently working on executing its power producer business expansion by utilizing geothermal resources, of which Indonesia has in abundance.

As at year end 2009, MedcoEnergi and its partners own and operate two gas-fired power plants with capacity of 2x27.75 MW and 2x27 + 7.5 MW, respectively. In addition, MedcoEnergi has a truck-mounted gas-fired power plant with a capacity of 19 MW on Batam Island. Furthermore, MedcoEnergi has retained its holding of 5% equity interests in Sengkang IPP.

As a power support services provider, MedcoEnergi and its other partners in a consortium continued to undertake the operation and Maintenance of PLN’s coal-fired power plant with a capacity 2x660 MW in Tanjung Jati, Central Java. In addition, as the power EPC and Project Management services provider, MPI Power has completed the gas-fired power plant development project owned by PLN at Sicanang, North Sumatra.

Key Development Project

In early 2008, the Company declared the business expansion to power producer utilizing geothermal resources as one of the Company’s Key Development Projects.

During the year 2009, MPI Power continued to work on one of its Key Development Projects, the development of 3x110MW Sarulla Geothermal Power Plant in Sarulla, North Sumatra province. Under this project, MedcoEnergi and its partners in a consortium will develop the potential geothermal fields at Sarulla and at the same time construct the geothermal steam-power plant.

Operating Assets

Panaran I (Mitra Energi Batam)

MedcoEnergi owns 54% shares in the company which is the operator of a gas-fired power plant with a capacity of 2x27.75 MW and plans to add a combined cycle 22 MW and 4,5 MW chiller to increase efficience and capacity, currently supplying electricity to local industries and housing in Batam. The electricity is generated by two gas turbine generators with advanced, computerized control systems, enabling the operator to accurately monitor the overall performance of the power plant and ensure its effectiveness and reliability.

CCPP Panaran II

 

Batam TM 2500

In respond to the increased electricity demand in Batam as special economic zone with rapid industrial growth and also to increase the existing plant reliability, the Company adds a 19 MW truck mounted gas turbine as back-up power in December 2006 and started production on 30 January 2007. The unit is located in Panaran II and started its commercial operation in December 2006.

Sengkang

  • MPI is a passive partner only with a 5% stake in the project

  • Capacity of 135 MW , and additional of 60 MW . Total capacity of 195 MW.

  • PT Energi Sengkang has obtained in principle approval from PLN to expand its capacity to 315 MW by 2010

Singa (2 x 3 MW SCPP)

  • Singa is synergy project developed by PT Medco Power Indonesia and its sister company, PT Medco E&P Lematang as offtaker.

  • The project is located in Singa Field, Lematang, South Sumatera

  • Singa is a 6 MW GTG Power Supply, 100% owned by MPI.

EPE 2x6 MW in South Sumatra

  • MPI plan to acquire 85% ownership of project with total capacity of 12 MW from PT. Multisakadaya.
  • The project is located in Prabumulih, North Sumatera
  • Main objectives of the acquisition :
  • Business Expansion to North Sumatera & synergy potential with other Medco projects.
  • Support MPI strategy in focusing on small to medium IPP’s & captive plants
  • Giving direct value added on Company’s Balance Sheet & Profit Loss since assets have been operated

MPE 2x6 MW in South Sumatra

 
  • MPI plan to acquire 85% ownership of project with total capacity of 12 MW from PT. Multisakadaya.
  • The project is located in Palembang, North Sumatera
  • Main objectives of the acquisition :
  • Business Expansion to North Sumatera & synergy potential with other Medco projects.
  • Support MPI strategy in focusing on small to medium IPP’s & captive plants
  • Giving direct value added on Company’s Balance Sheet & Profit Loss since assets have been operated

Committed Projects

Ijen Geothermal Power Plant

  • Location: East - Java
  • Design Capacity : 110 MV
  • Commercial Operations : Q2 2008

Sarulla

In consortium with Itochu Corporation & Ormat Technologies Inc was awarded to develop the 330 MW Sarulla geothermal Power project by PLN

UBE - Batam

  • Configuration  : 2 x 35 MW  SC GTG
  • Connection to 150 kV of Batam grids system