Marubeni Coporation has entered into a memorandum of understanding (MoU) with Korea Midland Power (KOMIPO), Samtan, and PT. Indika Energi Internasional to jointly develop the 1,000 MW Cirebon 3 Coal Fired Power Plant in the area adjacent to the Cirebon 1 & 2 Coal Fired Power Plants in West Java Province, Indonesia.
In October 2015, Cirebon Energi Prasarana (CEPR), at special purpose company created to develop the project, entered into a long-term power purchase agreement (PPA) with the Indonesian state-owned electricity utility, Perusahaan Listrik Negara (PLN) for the sale of electricity for 25 years.
CEPR will develop and construct a coal fired power plant with a generating capacity of 1,000 MW. Commercial operation is scheduled in 2020. Thereafter the electricity generated by the project will be supplied to PLN based on the PPA.
The Government of Indonesia has set a target to provide an additional 35GW of power capacity by 2019. As a result, there is a high expectation for overseas IPP developers to supply power to meet an increasing demand under the growing economy.