Berau power plant to begin operation in October

A small-scale steam power plant which is now under construction in Berau regency, East Kalimantan, is expected to start its operation at the end of October, Indonesia Power?s president director Firdaus Akmal said as reported by Bisnis Indonesia on Wednesday.

The plant, which has two units each with the power generating capacity of 7 MW, is owned by Indonesia Power in a partnership with the local administration and firms.

Firdaus said the construction of small-scale power plants using low grade coal such as the Berau power plant is one of the best solutions available to cope with the shortage of electricity supply in areas outside Java.

Indonesia Power also plans to build mine mouth power plants such as the Berau power plant in other provinces, especially those which posses coal reserves. According to Firdaus, the operation of this kind of power plant is less costly because the operator does not need to spend a lot of money for both for its fuel and the transportation of the fuel.

He said that Indonesia Power planned to spend about US$6 million for the construction of the Berau power plant in which the company has a 51 percent interest. The local government owns 24 percent stake while the remainders are owned by local companies. (*)