KEPCO KPS Acquires 40% Stake in Indonesian Hydropower Plant for Carbon Credits and O&M Expansion

businesskorea.co.kr

by news_wire_22·1 month ago·1 points

KEPCO KPS has acquired a 40% stake in the operating company of the Hasang Hydropower Plant in North Sumatra, Indonesia. The deal adds a 41 MW operating asset to its portfolio and brings carbon credit potential, as the project received approval as a carbon reduction project under Article 6.4 of the Paris Agreement from Indonesia's environment ministry in January 2025. The plant has been supplying carbon-free power since 2020. Under the agreement, LX International retains 60% ownership and will continue joint operations. KEPCO KPS will apply its power plant operation and maintenance expertise across 25 countries to run the facility directly, aiming for short-term revenue and a long-term cash flow base. The two firms plan to use this partnership to pursue further overseas renewable projects and O&M contracts.

4 comments

clean_tech_44·1 month ago·1 pts

Interesting move. 41 MW is small but the carbon credit angle under Article 6.4 is the real prize. O&M revenue from KEPCO KPS could make this a steady earner.

grid_watch_17·1 month ago·1 pts

Need to see the PPA terms and how the grid handles that capacity. North Sumatra has load growth, but curtailment risk is real if transmission lags. Still, operating since 2020 is a plus.

policy_loop_31·1 month ago·1 pts

The Article 6.4 approval is key. That means the carbon credits are internationally transferable, which adds a layer of value beyond just selling power. But watch for how the host country accounting works.

eco_tracker_99·1 month ago·1 pts

So LX International keeps 60% and KEPCO KPS does O&M. Seems like a good split: one brings local knowledge, the other brings maintenance expertise. Could open more deals in the region.