Govt to increase role of private investors in power projects

The government is drafting a new regulation to increase the role of private investors in its ambitious target of developing a combined 35,000 MW power plants until 2019, Kontan reported on Monday.

The paper quoted Minister of Energy and Mineral Resources Sudirman Said as stating that the quota of state-owned electricity firm PT PLN in the 35,000 MW power plant projects will be reduced to 5,000 MW from the original plan of 10,000 MW, allowing much of the target to be developed by private investors.

He added that the government is looking for mechanism to bolster cooperation between PLN and the private sector in power project either via built, operate and transfer (BOT) scheme or rental scheme. ?The private investors will develop the power plants, and the government will lease them,? Sudirman said.

Regarding the obstacle of land acquisition, the government will issue extra regulations within a month to help accelerate land acquisition for power projects, Sudirman explained.

He also said that the government is drafting a new regulation to allow private investors including foreign in developing power transmission lines particularly in a bid to support the planned 35,000 MW power plant projects as PLN does not have experience in developing of up to 50,000 km transmission line. (*)