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Private Power Utilities: The Economic Benefit of Captive Power in Industrial Estates in Indonesia

GE Operations Indonesia (“GE”), in conjunction with PwC Indonesia, has produced a report on Private Power Utilities in Industrial Estates to understand their economic benefits.

Industrial Estates play a major role in the Indonesian Government’s plan to boost industrial and economic growth and stimulate manufacturing competitiveness. A reliable power supply is likely to be a key driver of growth for Estates, and Private Power Utilities (medium-scale power plants located within an Estate selling power directly to tenants) could be a supporting pillar of The Government’s 35 GW program to achieve this.

The report assesses the potential economic benefits to tenants in 7 industrial sectors of avoided blackout costs, such as reduced overtime and diesel costs, as well as enhanced revenue opportunities. Based on differing blackout scenarios, firms in these 7 sectors could save around USD 415 million annually.

The report also outlines market opportunities, options for business models, contract structures, financing arrangements and project development process to help developers.

 

Contact us

Sacha  Winzenried

Sacha Winzenried

Advisor, PwC Indonesia

Tel: +62 21 509 92901

Tim Watson

Tim Watson

Advisor, PwC Indonesia

Tel: +62 21 509 92901

Joshua R Wahyudi

Joshua R Wahyudi

Partner, PwC Indonesia

Tel: +62 21 509 92901

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