Musi River Hydro Indonesia

Climate change mitigation and community benefits with run-of-river hydropower

Located in rural Sumatra, this run-of-river hydroelectricity project harnesses the flow of the Musi River to generate clean electricity for the grid. The project supports local jobs, new income streams, and has funded infrastructure improvements for the local community – as well as a reforestation programme.

Clean energy to preserve Sumatra's rich forest

Sumatra, Indonesia's largest island, is covered by dense tropical forests that are home to countless plant and animal species. Its fertile soil is ideal for growing rice and other commodities such as coffee, cacao and cinnamon. Despite this, new economic opportunities are limited by basic infrastructure and poor electricity access. However increasing energy access must be done in harmony with the island's unique natural ecosystems.

A run-of-river project designed for the local context

This grid-connected, run-of-river hydroelectricity plant is built on the upper banks of the Musi River near Sumatra's port city of Bengkulu. By harnessing the kinetic energy of powerful flowing water, the Musi River project delivers over 765,000 MWh to Sumatra's grid every year.

The project has taken specific steps to minimise any impact on the environment: the turbine hall and pipelines have been built underground and the project owner set up a reforestation programme to prevent erosion and keep the land healthy. The project has also implemented several innovative solutions to increase efficiency using natural solutions, for example removing Eichhornia crassipes, a water plant that reduces water quality and disturbs water intake into the plant. The plant is turned into an organic fertilizer that local farmers can use on their fields.

Protecting the environment, supporting the local community

The Musi River project addresses issues in rural Sumatra such as poor electricity access and the lack of quality employment opportunities – as well as fostering sustainable economic development. The Musi River Hydro plant has created quality jobs and upskilling opportunities for locals in what has been traditionally a farming community. A portion of the revenue from carbon credits is reinvested in the local community. In line with requests from the local communities, building an orphanage, waste facilities, a school, a new market place, a taxi station and constructing new roads and bridges, – giving local farmers better access to their rice paddies and the opportunity to pursue additional income.

"The Musi River project provides: an annual medical check-up for employees, training/education courses, a retirement fund, an extra-afternoon meal, and access to a sports facility."
Mr. Asep Saefudin, a technical worker at the plant