Kyushu Electric Power Company Inc. ("Kyuden") announced that as of March 18, 2017, it commenced commercial operation of the first unit (capacity 105.9MW) of the Sarulla Geothermal IPP Project (the "Project"), one of the world's largest geothermal power plant project.

　This is a geothermal development project being pursued by Kyuden and our investment partners^※1 through Sarulla Operations Ltd.^※2
　We are developing the Project by utilizing the geothermal power technology held by Kyuden group companies, such as Kyuden and West Japan Engineering Consultants, Inc.
　The Project involves development of geothermal field in Sarulla, North Sumatra, Indonesia, construction of geothermal power plant with the Project's total capacity being 320.8MW, and selling generated electricity to Indonesia's state-owned electricity company ("PLN") for 30 years.
　The Project is the largest single contract geothermal power IPP (Independent Power Producer) in the world.

　We will continue to proceed with construction work for the second and the third units, expected to commence commercial operation in 2017 and 2018 respectively, through making every effort to preserve the environment and ensure safety and disaster prevention. Moreover, while promoting activities for co-existing with communities and society, we will strive to respect related laws and the spirit thereof, and conduct business operations in a fair and just manner.

　We will contribute to countermeasures against global warming and stable supply of electricity in Indonesia by utilizing geothermal power technology established through geothermal power development in Japan.
　Furthermore, in Asia where expansion of electric demand is expected, we intend to actively pursue the development of good project, with geothermal and coal fired power as the priority development field, in addition to gas combined cycle power which we have been focusing on, and aiming to improve Kyuden Group value.

[Main Events]

[Outline of the Project]

[Location of the construction of power station]