Indonesia Hydro Renewable Energy


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

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Project Details

At a glance

  • 765,000 MWh generated on average annually by the hydro plant, displacing fossil fuel-generated electricity and boosting Indonesia’s renewables sector
  • 568,000 tones of CO2e reduced on average annually, contributing to climate change mitigation
  • 50 permanent jobs created in power plant operations, with part-time employment opportunities offered during the construction phase   
  • 2 drawbridges repaired, as well as new roads, trash basins, and financial support building a public transport terminal, mosque, and a traditional marketplace
  • Free training for locals on composting and making organic fertiliser from invasive aquatic plants – providing free fertilisers to farmers to maintain healthy ecosystems
  • 20 hectares reforested in the project area as part of a dedicated programme to support a healthy, natural ecosystem


How it works

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, cinnamon and palm sure. Despite this, new economic opportunities are limited by rudimentary infrastructure and poor electricity access – and growing energy demands threaten Sumatra’s unique natural ecosystems.

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 running water, the Musi River Hydro plant has a total-installed capacity of 210 MW and delivers over 765,000 MWh to Sumatra’s grid every year – that’s enough to meet the demands of over 700,000 Indonesians on average each year!

 By replacing 765,000 MWh of fossil fuel energy with renewable energy, the projects reduce 568,000 tonnes of carbon emissions on average annually, contributing to climate change mitigation.

    Why we chose this project

    This 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 project revenue is reinvested in the local community, building an orphanage, constructing new roads, bridges, and a traditional marketplace – giving local farmers better access to their rice paddies and the opportunity to pursue additional income. A reforestation program has also been established in the surrounding catchment

    The project engages with local communities, farmers and NGOs through annual stakeholder meetings – earning the project the coveted Social Carbon certification area to safeguard the natural landscape.

    UN Sustainable Development Goals

    This project advances 6 out of 17 United Nations Sustainable Development Goals.


    The Indonesia Hydro Renewable Energy (Musi River Hydro Indonesia) is validated by the Verified Carbon Standard (VCS project ID 487) and the Social Carbon Standard. View this project on Verra.

    Project Type: Clean Energy Generation

    Clean energy generation projects substitute fossil fuel-intensive electricity with clean and renewable energy which cuts down greenhouse gas emissions 

    Project Manager

    This project is operated and managed by Southpole.

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