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Hydropower Development Consulting
Backed by more than six decades of hydropower experience in Indonesia — and as a rare engineering firm that also operates its own hydropower IPP business — NK is a partner that understands both sides of the table.
Six Decades of Hydropower in Indonesia
Nippon Koei’s (NK) involvement in Indonesia’s water resources and hydropower sector dates back to 1953, when our founder, Dr. Yutaka Kubota, toured Southeast Asia and identified the hydropower potential of the Lake Toba region. NK began operations in Indonesia in 1959 with the comprehensive development master plan for the Brantas River, and in 1961 Dr. Kubota himself formulated the Asahan Hydropower and Aluminium Smelting Project — a vision he personally presented to President Soeharto in 1969.
For more than 60 years since, NK has remained deeply engaged in Indonesia’s hydropower sector, from nationwide potential surveys to the design and construction supervision of numerous hydropower plants.
Today, Indonesia is seeing a surge in privately-led IPP hydropower development. Yet hydropower remains one of the highest-risk categories of infrastructure investment, shaped by complex geology, hydrology, permitting, environmental and social safeguards, and project financing.
From the earliest screening of potential sites through financing support, design, construction supervision, and long-term asset management, NK adapts its role to the needs of investors, IPP developers, and PLN alike — guiding high-risk hydropower investments to successful outcomes.
Why Nippon Koei
Five reasons investors and IPP developers choose NK as their hydropower partner in Indonesia.
60+ Years of Hydropower Experience in Indonesia
Since 1953, NK has continuously conducted national-level potential surveys — including the JICA Master Plan Study (2009–2011) evaluating 254 conventional and 10 pumped-storage sites nationwide. This database allows investors to begin site screening from the very first stage.
Hands-On Experience as an IPP Operator
Through PT. Cikaengan Tirta Energy, NK understands the realities of IPP development and PLN’s IPP procurement scheme not only as an engineering consultant, but as a developer.
Extensive Track Record in Technical Due Diligence
Beyond NK’s own projects, NK regularly conducts third-party TDD for investors evaluating hydropower assets developed by others — helping identify technical risks before capital is committed.
Indonesia’s First HSS-Certified Hydropower Project
The Asahan No.3 HEPP (174 MW) became the first hydropower project in Indonesia certified under the Hydropower Sustainability Standard (HSS) — the international benchmark for responsible hydropower development. Commercial operation began December 2024.
Indonesia’s First Pumped-Storage Project
NK serves as the Engineer for Detailed Design review, Tender Assistance, and Construction Supervision on the Upper Cisokan Pumped Storage Power Plant (1,040 MW) — Indonesia’s first pumped-storage project — continuing an engagement spanning more than three decades.
Support Through Every Stage of Development
Aligned with the investment decision-making process, NK provides engineering consulting services across the full hydropower project lifecycle — from early-stage screening through construction supervision.
Potential Site Screening
Drawing on decades of nationwide potential survey data, NK provides early-stage evaluation of candidate sites, including estimated annual river flow, generation capacity, capacity factor, and indicative project cost. Because this database already exists, investors and IPP developers can consult NK from the very first stage of site consideration — well before a formal feasibility study begins.
Feasibility Study and Technical Due Diligence
NK conducts topographic, geotechnical, and hydrological surveys, Environmental and Social Impact Assessments (ESIA), FS-level engineering design, cost estimation, and financial analysis. In addition to full FS work, NK has extensive experience conducting third-party Technical Due Diligence on projects developed by others — supporting investors’ risk assessment ahead of financial close.
Detailed Design, Value Engineering, and Technical Review
NK acts as “The Engineer” under FIDIC Red Book (Design-Bid-Build) contract arrangements, and provides Value Engineering and Technical Review services to optimize cost and reduce risk during the design stage.
Permitting and Environmental & Social Safeguards
NK supports clients through Indonesia’s local permitting requirements, including consultation with the Dam Safety Committee, as well as ESIA and resettlement planning where required.
Procurement and Construction Supervision
Where an EPC contractor is procured, NK serves as Owner’s Engineer on behalf of the project owner. NK also provides Construction Supervision services to manage quality, schedule, and cost through to commissioning.
Supporting Hydropower Assets in Operation
NK’s support does not end at commissioning. We provide ongoing services across the full asset lifecycle of operating hydropower plants.
- → Satellite-based monitoring of dam and slope deformation
- → Ageing diagnosis and periodic inspection
- → Sedimentation countermeasures
- → Dam rehabilitation and upgrading
This ability to support clients from initial development through decades of operation is a differentiator few engineering consultants can offer.
Sustainability
Contributing to Decarbonization
Hydropower is a cornerstone of renewable energy and a direct contributor to Indonesia’s decarbonization targets. From identifying untapped potential through nationwide survey data to extending the life and efficiency of existing plants, NK supports the technical foundation for hydropower’s continued expansion as a clean, dispatchable power source.
Related Projects
A selection of NK’s hydropower projects in Indonesia.
Indonesia’s first hydropower project certified under the Hydropower Sustainability Standard (HSS). BIM introduced during construction. Commercial operation December 2024.
View project →Combined 88 MW run-of-river hydropower project in Aceh, designed and supervised by NK.
View project →Indonesia’s first pumped-storage project in West Java. NK serves as Engineer for Detailed Design review, Tender Assistance, and Construction Supervision — engagement spanning more than three decades.
Project page coming soonNK’s own hydropower IPP business in Indonesia — giving NK direct hands-on experience as a developer operating under PLN’s IPP procurement scheme.
Learn more →Frequently Asked Questions
What is Technical Due Diligence (TDD), and why is it needed before investing in a hydropower project?
TDD is an independent, third-party technical review of a hydropower project’s design, cost estimates, and risk factors. Conducting TDD before an investment decision helps identify technical risks that may not be visible from financial or commercial documentation alone, improving the accuracy of investment decisions.
What is the difference between an Owner’s Engineer and “The Engineer” under FIDIC?
An Owner’s Engineer acts as the project owner’s representative for design oversight and construction supervision, typically used under EPC contract arrangements. “The Engineer” under the FIDIC Red Book (Design-Bid-Build) is a contractually defined, neutral role that administers the contract between the employer and the contractor. NK is experienced in both roles and adapts to the contract structure of each project.
What is pumped-storage hydropower, and how is it different from conventional hydropower?
Pumped-storage hydropower uses two reservoirs at different elevations. During periods of low electricity demand, water is pumped to the upper reservoir; during high demand, the water is released through turbines to generate electricity. Unlike conventional hydropower, pumped storage functions primarily as large-scale energy storage, helping to balance the power grid and support intermittent renewables such as solar and wind.
What kind of technical support is available under PLN’s IPP procurement scheme?
NK supports IPP developers with feasibility studies, technical due diligence, design review, and construction supervision aligned with PLN’s IPP procurement requirements, drawing on direct experience as both an engineering consultant and an IPP operator in Indonesia.
How is the condition of an ageing hydropower plant assessed?
Assessment typically combines on-site inspection of civil and mechanical structures with satellite-based monitoring of dam and slope deformation, allowing for wide-area, continuous condition tracking alongside periodic physical inspection.
How are sedimentation and dam rehabilitation addressed at existing facilities?
NK evaluates sediment accumulation and its impact on reservoir capacity and plant performance, then develops rehabilitation and upgrading plans based on the specific causes identified — ranging from sediment flushing and dredging measures to structural upgrades that extend the facility’s operational life.
Ready to Discuss Your Hydropower Project?
We welcome inquiries at every stage of hydropower development — from the initial screening of a potential site through to the long-term management of an operating asset.
Contact Us →