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.
