SBS, Indonesia Power enter talks over grid expansion for Nautilus

On 17 January, the developer of the Nautilus project – SBS – signed a Memorandum of Understanding (MoU) with Indonesian state-owned power transmission company PT Indonesia Power, aiming to expand the grid on Lombok Island to accommodate the electricity that will be fed in by the Nautilus tidal energy array.

The MoU with PT Indonesia Power, signed by SBS INTL with the independent power producer SBS Energi Kelautan in attendance, is the first step that will kick off discussions towards commencement of a feasibility study for the Lombok Island grid expansion.

The Nautilus tidal-stream project will need an experienced electrical transmission contractor for power transmission extension works on Lombok to receive ocean energy power from the tidal-stream turbines when installed, SBS stated.

SBS Group Chairman & CEO Michael J. Spencer said: “This is a very significant agreement bringing together the specialist capabilities of Indonesian and British companies. We anticipate this MoU signing will subsequently lead to award of contract for Indonesia Power to provide its substantial onshore power transmission experience and construction capabilities to the Nautilus project, adding an essential element to our tidal-stream development activities for Indonesia.”

In October 2017, SBS Energi Kelautan reached the final investment decision (FID) for the first phase of the Nautilus project. The first phase, expected to be completed by the first quarter of 2020, involves the installation of eight 1.5MW tidal energy turbines, supplied by Edinburgh-based tidal energy developer Atlantis Resources.

The power produced from the project will be sold to Indonesia’s state-owned electrical utility company PT Perusahaan Listrik Negara (PLN), under a 30-year power purchase agreement.

The 12MW phase will be followed by site expansions to 70MW in the second phase, and the project will ultimately have 150MW of capacity after the third and final phase. The project sites in Indonesia are located in the straits around islands of Bali and Lombok.