ADRO - To build 70MW wind power plant

Adaro Indonesia (ADRO) has won the bidding for a 70MW wind power plant (PLTB) in Tanah Laut, South Kalimantan under JV scheme with France-based energy company, Total Eren. The ADRO-Total Eren consortium won the project after submitting the lowest electricity selling price to PLN at only USD5.5 cents per kWh, much lower than the previous projects' pricing which hovers above USD10 cents/kWh. Despite no project value disclosure so far, the 70MW wind power plant will be equipped with a 10 MWh battery energy storage system (BESS). (Source: Bisnis Indonesia) Comment: We view this as a bold move from ADRO to further diversify away from the coal-based business. While the financial impact of this project is awaiting further financial details, but we are positive with ADRO's ability to secure a strong and prominent partner in the renewable energy sector, Total Eren.