The project will involve construction of two coal-fired power plants with capacity of 800 to 1,000 MW will be built in Pemalang.

The plant would employ supercritical technology which will offer higher efficiency and lower carbon emissions.

The project, implemented for state utility provider Perusahaan Listrik Negara (PLN), is part of the federal government initiative to add 10,000MW of electricity to PLN’s power grid.

PLN said a power purchase agreement would be signed on 31 August this year and the project will receive guarantee through state-owned company Penjaminan Infrastruktur Indonesia.

Commercial operations are scheduled to commence in 2017, according to the

PLN plans to add 4,500 MW of electricity to its grid by the end of this year and another 1,000 MW by 2013.