IP plans 1,000 MW coal-fired power plant project in C. Java
Monday, August 14 2017 - 01:23 AM WIB
IP, a subsidiary of state-owned electricity firm PT PLN, said in a statement last week the two companies have signed a MoU for cooperation in the planned PLTU Cilacap Adipala project.
IP said that the 1,000 MW PLTU Cilacap project forms part of the government?s five-year plan to develop a combined 35,000 MW power plants through 2019, and to help increase power supply in Cilacap, where the government plans to develop maritime industry.
The signing of the MoU comes following previous suggestion from Minister of Energy and Mineral Resources Ignasius Jonan for PLN to suspend additional coal-fired power plant projects in Java amid concerns over excessive power surplus in the region of about 5,000 MW by 2021 when new projects under the 35,000 MW program comes on stream, while electricity demand is expected to be slower than anticipated due to the weaker economic growth. The 35,000 MW program was based on economic growth assumption of 7 percent per annum, while growth during the past two years have hovered at around 5 percent per annum, and such growth rate is projected to continue over the next couple of years.
Of the total 35,000 MW program, about 22,000 MW was initially planned to be developed in Java. As per April, PLN had signed power purchase agreements for the development of 9,000 MW of power plants. PLN said in April that a total of 13,000 MW of new capacity is more than sufficient to meet power demand in Java-Bali system until 2020.
Editing by Reiner Simanjuntak