News Release
Contract Awarded for Rajamandala Hydro Power Plant in Indonesia

September 25,2014
Fuji Electric Co., Ltd.

Tokyo, September 2014 - Fuji Electric Co., Ltd. (TSE:6504) ("FE"), headquartered in Tokyo, Japan and led by President, Michihiro Kitazawa, is pleased to announce that its affiliate Voith Fuji Hydro K.K., headquartered in Kawasaki City, Kanagawa Prefecture and led by President, Masataka Sunaga, has been awarded an contract for the main power equipment for Rajamandala Hydro Power Plant of the Republic of Indonesia.

1. Description of the Contract

Voith Fuji Hydro has entered into the contract with Hyundai Engineering of South Korea, being responsible for overall engineering and procurement as the main contractor, to supply a set of Kaplan type hydraulic turbine and generator. Voith Fuji Hydro will start delivering the main equipment in the beginning of 2016.

Through the supply of the main power equipment for this project, Voith Fuji Hydro is contributing to the "strengthening of power generation capacity by renewable energy," which is one of the key challenges for the Indonesian power sector.

2. Outline of the Project

In this project, PT. Rajamandala Electric Power (REP), an Indonesian IPP company invested by Kansai Electric Power Co., Inc. and PT. Indonesia Power, will construct and operate the hydropower plant. The electricity will be sold to PT. PLN for 30 years.

The upstream and downstream areas of this plant respectively have a high-capacity hydropower plant in operation and this run-of-river hydropower plant makes use of the effective head between the two hydropower plants. This eliminates the need for constructing a new dam and minimizes the impact on the social environment in the site area.

Power Supply Situation in Indonesia

In Indonesia, electric power demand is estimated to increase at an annual rate of 8.5% or higher in the next 10 years due to a population increase, economic growth, regional electrification and other reasons. In reality, however, the low reserve margin makes it an urgent issue to strengthen the country's power supply capacity.
The total installed power capacity of Indonesia is 45,253 MW as of the end of FY 2012, of which hydropower facilities account for 4,146 MW (approximately 9%) including micro hydropower. Of the water resources identified by the hydropower survey, potential hydropower, which indicates the amount of hydro-energy that is technically and economically available, is approximately 75,000 MW. The present development achievement rate out of this capacity remains low at approximately 6%.
The Indonesian Government has set a goal of increasing the share of renewable energy in the source of power generation to 25% by 2025.

About Voith Fuji Hydro

Voith Fuji Hydro ("the company") was founded by joint investment of Voith Hydro Holding GmbH & Co. KG of Germany, which is expanding its business as a global leading company in the hydropower plant sector, and FE.
The company continues to provide its state-of-the-art hydropower equipment and systems to the Japanese and overseas markets including Southeast Asia.
The company deals with all products required for hydropower generation and are capable of providing comprehensive solutions that meet wide-ranging customer demands through development, design, manufacture and marketing. For example, it undertakes proposals for modernization, rehabilitation and repair of conventional hydropower as well as pumped storage power stations of various scales, project implementation and verification of the results of test runs in an integrated manner, and thereby supports stable operation of power plants together with customers.
In addition, the company continues to support actively overseas IPP hydropower projects to be developed by Japanese power companies including this project by providing detailed responses.

Company Overview

Development, design, manufacture and installation of hydraulic turbines, generators and auxiliaries equipment, control/automation equipment and other electric-mechanical equipment and hydropower generation plant equipment and systems