China Shenhua’s S. Sumatra power plant project begins commercial operation
Wednesday, September 24 2025 - 12:49 PM WIB
By Ranuh Rafiani Putri
Chinese power generation firm China Shenhua reported on Wednesday that its 2x350 MW Sumsel-1 coal-fired power plant in South Sumatra has officially commenced commercial operations, following the issuance of the Commercial Operation Certificate by state electricity firm PT Perusahaan Listrik Negara (PLN) on September 10, 2025. The project began commercial operations on September 4, 2025, in line with the terms of its Power Purchase Agreement (PPA).
The Sumsel-1 Power Project, located in a tropical rainforest climate with high temperatures and heavy rainfall, has faced logistical challenges, including underdeveloped infrastructure and complex geographical conditions. Despite these obstacles, the project team successfully completed the main power plant construction and the 80-kilometer transmission line, achieving the fastest timeline among similar regional projects.
The project used a parallel commissioning plan for both units and optimized the acid cleaning process to accelerate the commissioning timeline. As a result, the first unit was successfully connected to the grid within 35 days of back-feeding power, and both units were fully operational within 89 days. All operational indicators have exceeded design specifications.
Read also: Shenhua completes first grid connection for second power plant unit in Sumatra
A dedicated task force was established to manage communication and coordination with PLN, ensuring compliance with the PPA. Through effective technical and commercial negotiations, the project secured the Commercial Operation Certificate within a month of completing the 96-hour continuous trial operation.
Located in South Sumatra Province, the power project includes the development of two 350-megawatt supercritical coal-fired power generating units and an accompanying 80-kilometer double-circuit 275kV transmission line.
The project is being executed under a Build-Own-Operate (BOO) model by PT Shenhua Guohua Lion Power Indonesia, a Shenhua-controlled subsidiary in which the company holds a 75% stake. The power purchase agreement signed with Indonesia’s state-owned utility PT PLN has a 30-year term.
Editing by Alexander Ginting