CG wins $26m contract to supply power transformers to PLN

By Romel S. Gurky

Crompton Greaves (CG), a unit of India?s conglomerate Avantha Group, said it has sealed a deal with Indonesia?s state-owned electricity firm PT PLN for the manufacture and supply of 37 units of 60MVA, 30MVA and 150/20kV power transformers.

Valued at US$26 million, CG?s power transformers will be installed across PT PLN?s transmission network, in 36 different substations in Sumatra, Java, Bali, Kalimantan and the Sulawesi islands of Indonesia, the company said in a statement Wednesday.

?This project is being funded by IBRD - World Bank, in collaboration with the Government of Indonesia, for the purpose of strengthening Indonesia?s power networks,? the statement said.

The order was won under a competitive international public bidding process and represents the first of its kind won by CG Indonesia, the company explained. The project scope includes the design, manufacturing, factory testing, site installation and testing, and the pre-commissioning of the transformers over a period of 18 months.

PT PLN is the sole government-owned corporation in electricity generation, transmission and distribution in Indonesia and is one of the largest state-owned enterprises. It has an installation base of 48 GW and ambitious plans to ramp up the electrification of Indonesia from the current 67 percent to 100 percent in the next decade. From 2013 to 2022, PT PLN has a long-term plan for an additional generating capacity of 59.5 GW, with a total estimated expenditure of around US$125 billion. From 1993 onwards, CG has been regularly providing PT PLN?s generation and transmission divisions, power transformers in the range of 30MVA to 500MVA, with voltage levels up to 500 kV. CG has also entered into a joint venture with PT PLN in the past, to manufacture high-voltage switchgear products of up to the 500 kV class, locally in Indonesia. This makes CG a preferred local partner for power plant transformers in this region.

CG has also invested more than $15 million to build a 550 kV Extra High Voltage Test Lab in Indonesia. Due to its consistent performance, CG commands a 30 percent market share in the utility segment.

Avantha Group Company CG is a global pioneering leader in the management and application of electrical energy. With more than 15,000 employees across its operations in around 85 countries, CG provides electrical products, systems and services for utilities, power generation, industries, and consumers.

Editing by Reiner Simanjuntak