SDG Impact Japan Co., Ltd. (hereinafter “SIJ”) has completed construction of the Pungga Hydropower Plant, a hydropower project in Indonesia, and commenced commercial operation on Friday, June 26. Located on the southern shore of Lake Toba in northern Sumatra, Indonesia, this run-of-river power plant draws water from the Pungga River and has an installed capacity of 3,400 kW.
The Pungga Power Plant, with SIJ as a representative participant, was developed under the #Subsidy Programme for the Joint Crediting Mechanism (JCM) Facility Introduction” (hereinafter referred to as the “JCM Equipment Subsidy Program”) implemented by the Ministry of the Environment from 2022-2025. The plan was developed in collaboration with the Indonesian power generator PT Mulya Energi Lestari (hereinafter “MEL”).
In addition to financial support through the JCM Equipment Subsidy Program, SIJ has provided investment and financing for MEL’s operations through its wholly-owned subsidiary, SIJ Climate LLC (hereinafter “SIJ Climate”). Furthermore, SIJ has established Air Indonesia Co., Ltd. (hereinafter “the Joint Venture”) in partnership with Electric Power Development Co., Ltd. (hereinafter “J-Power”) to mobilize further climate financing in MEL.
Following the Sion Hydropower Plant, which began operations in August 2020, this project marks the second hydropower plant operated by MEL to achieve commercial operation, and it is the first JCM-related project funded by our company to reach this milestone.
Going forward, through the registration of the Pungga Power Plant as a JCM project and the implementation of monitoring, we will contribute to the achievement of Indonesia’s and Japan’s NDCs by generating JCM credits and transferring them to the Japanese government.
※ Under the equipment grant component of the JCM Equipment Subsidy program, the aim is to reduce greenhouse gas (GHG) emissions in partner countries by utilizing advanced decarbonization technologies, measure, report, and verify GHG emission reduction effects, issue JCM credits, and utilize them to help Japan achieve its greenhouse gas emission reduction targets. This project is being implemented in cooperation between the Indonesian and Japanese governments.
Pungga Power Plant Overview
| Location: | Humumbang Hasundutan Regency, North Sumatra Province, Indonesia |
| Capacity: | 3,400 kW |
| Schedule: | March 2023: Start of construction |
| June 2026: Start of commercial operation |
PT Mulya Energi Lestari : Overview
| Established: | August 2016 |
| Headquarters: | Jakarta, Indonesia |
| Shareholders: | Silver Moon Investment PTE. LTD. |
| PT Sudi Mulya Lestari | |
| Orange Capital PTE. LTD. | |
| Alamport Renewables PTE.LTD. | |
| Air Indonesia Co., Ltd. | |
| Business Activities: | Development, construction, and operation of hydroelectric power plants |
Air Indonesia Co., Ltd. Overview
| Established: | October 2024 |
| Headquarters: | Japan |
| Shareholders: | J-Power: 95.97% |
| SIJ Climate LLC (a wholly owned subsidiary of SDG Impact Japan) 4.03% | |
| Business Activities: | Holding shares in MEL, registration and issuance for JCM credits |
SDG Impact Japan Inc. Overview
| Established: | January 2021 |
| Headquarters: | 7th Floor, Kishimoto Building, 2-2-1 Marunouchi, Chiyoda-ku, Tokyo |
| Representatives: | Co-CEO: Mari Kogiso, Shohei Maekawa |
| Website: | https://sdgimpactjapan.com/jp/ |
