Mitsubishi enters geothermal power business in Indonesia

Tokyo, October 17, 2012 – Mitsubishi Corp. will acquire 20 percent shares of Star Energy Geothermal. SEGPL is a holding company that manages operation of the Wayang Windu Geothermal Power Project Plant, a geothermal power plant stably operating since June, 2000 in Java Island of Indonesia.

Wayang Windu, which owns about 13,000 hectares of contract area, is known as one of the world’s largest geothermal resources with a potential gross capacity of 420 MW.

This acquisition is Mitsubishi’s first entry into the Indonesian power industry and its first operation of a geothermal power plant. Through SEGPL, Mitsubishi is aiming to develop and operate multiple geothermal power plants in Indonesia, including the expansion of Wayang Windu.

Driven by domestic demand, Indonesia has maintained a high rate of economic growth, and Java Island, where Indonesia’s population and industry is concentrated, is expected to see a 7 to 8 percent annual growth in demand for electricity in the coming years.

Accordingly, Indonesia has declared the development of new sources of power as a national priority, and is aiming to make use of its estimated 29,000 MW of geothermal reserves.

According to this plan, new geothermal power plants with a total capacity of around 6,000 MW will be developed by 2020.

Mitsubishi plans to expand its equity-based capacity from the existing 4,300 MW to 6,000 MW and to achieve a rate of 10 percent to 20 percent of that capacity emanating from renewable sources such as geothermal, wind and photovoltaic power generation.

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