Bali power plant still waiting for investors

The government has thus far not yet received interests from an investor to continue the development of the stalled Bedugul geothermal-powered power plant in Bedugul, Bali, that needs a total investment of $450 million, Bisnis Indonesia reported on Tuesday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that Bali actually a potential market for electricity, considering its electricity demand growth of 12 percent per annum and no adequate reserves margin on the island.

Bali will continue to experience electricity shortage until year 2003, he said.

"Thus far, however, there is no developer that has expressed their real interests to continue the geothermal-powered power plant exploration project in Bedugul," Purnomo said.

Currently, electricity demand in Bali is met with supplies from the 41-megawatt diesel-powered power plant in Pesanggarahan, 96-MW coal-powered power plant in Pesanggrahan, 131-MW coal-powered power plant in Gilimanuk and the 180-MW Java-Bali interconnection system.

Their total combined capacity is 448 MW. Thus, reserves margin of electricity in Bali currently stands at 125 MW.

"If there is no new power generators, this Paradise Island will experience an electricity crisis, starting 2003," Purnomo said.

Therefore, he expected that new investors would come in to continue the development of the Bedugul power plant. The new investor, he said, could negotiate with state electricity company PT PLN over the pricing.

The Bedugul power plant was explored in 1994 by state oil and gas company Pertamina, in cooperation with Bali Energy Ltd, but it was then halted in 1997 because of the financial crisis.

Separately, the head of mining and energy office at Bali provincial administration, Cakra

Sudharsana, said the exploration of the Bedugul project would be continued by PT Tenaga Bumi Bali by the end of this year. He did not give further details. (*)