Chinese firm to build power plants in Lampung

Hong Kong-based coal miner China Shenhua Energy Co. Ltd. has expressed a commitment to build coal fired power plants in Lampung as poor electricity remains a problem in a number of regions across the country, The Jakarta Post said on Thursday

The company, part of the Chinese government?s mining and energy company Shenhua Group, and the Lampung administration have signed a memorandum of understanding (MoU) on a partnership commitment between the two parties to build 2x350 megawatt (MW) mine mouth power plants in Mesuji, Lampung.

The MoU also includes a commitment to establish other power plants with a total capacity of 6x350 MW.

Cong Guin, a representative from the company?s Guohua Electric Power Branch, said the development would be environmentally friendly as well as meet the standards of security, efficiency and advanced technology.

?The coal boiler will be designed in a special way to match local resources of coal," Guin said.

Lampung reportedly lacks up to 300 MW of electricity supply.

I Ketut Dharpa, public relations manager at the state owned electricity firm PLN?s Lampung Branch, said the future mine mouth power plant that would be built by the Chinese investor was expected to solve the problem of electricity shortages in the province.

Ketut said the ideal level of installed power in Lampung was around 1,000 MW as the PLN served more than 1 million customers in the province.

According to Ketut, Lampung currently has a peak load of 819 MW, 30 percent of which needs to be kept in reserve for the province.

?Lampung has a total capacity of only 819 MW, which is partly due to contributions from the southern part of Sumatra through interconnection networks? he said. (*)