The East Java provincial administration will develop micro hydroelectric power plants (PLTMH) with capacity of less than 500 kilowatt-hours (kWh) to help thousands of people in rural areas meet their daily power needs, The Jakarta Post reported on Friday.
"Apart from that, the technology is also easy to learn for the local community," East Java Governor Soekarwo said Thursday as he officially launched the development of a PLTMH in Seloliman sub-district, Trawas district, Mojokerto.
To realize the plan, Soekarwo said, his administration would establish a regional guarantor institution tasked with providing guarantees to both investors investing in the development of PLTMH and banks providing loans for the projects.
"We will offer the projects to banks to help sub-district administrations develop PLTMH in the province," he said.
The PLTMH in Seloliman, with investment of Rp450 million, produces 14.7 kW to help economically challenged families in the region that had so far remained untouched by PLN.