Coal-fired power project at mining site not economical

Energy consultant Nengah Sudja said that the construction of a coal-fired power station at a coal-mining site in South Sumatra was not economical as it was located far from the sea, the Republika daily reported on Friday.

"It will be cheaper if it is constructed near the sea to help reduce costs for the transportation of the machinery," Nengah said on Wednesday.

If the project is located in the hinterland, additional costs are needed especially for transporting the machinery and other electricity equipment, he said. A cooling system tower will be needed if there is no rivers with adequate water current near the site, he added.

Nengah also reminded that transmission costs for the electricity to be produced by the power station at the mining site is much more expensive than transporting coal by train.

"Moreover, building a power project near the sea will give another benefit in that the gas emission from the station will be discharged directly into the sea, thereby reducing pollution on the land," he said.

Meanwhile, South Sumatra Governor Rosihan Arsyad said that his province is rich of coal reserves with total coal ore deposits estimated at about 13.34 billion tons or 34.32 percent of the total national reserves, but it has not been able to utilize them. "Nearly 60 percent of areas in the province has not got electricity," Rosihan said.

South Sumatra should have become a national electricity center, which supplies electricity to other provinces and also Singapore, he said. (*)