Java-Bali grid needs US$2 billion a year to cope with electricity crisis

The Java ? Bali grid needs fresh funds of between US$2 billion and US$3 billion a year to increase the power supply to an ideal level. Without the construction of new plants, the current power crisis would be getting worse, Kompas reported on Saturday.

President of state owned electricity company PLN Eddie Widiono said in Jakarta on Thursday that the 12 percent increase in the power demand of about 12 percent a year could be only met if there was an increase in the power supply by 12,000 MW a year.

"To provide additional supply 12,000 MW a year, we need cash of between US$2 billion and US$3 billion," he told a hearing with members of the House of Representatives (DPR). He added that PLN was now able only to provide additional supply of 5,000 MW a year.

Eddie said in a normal condition, PLN would be able to allocate about 29 percent of the power supply as reserve until the end of this year. With the sharp increase in the demand, the available electricity reserve would decline to 21 percent in 2005.

"With the current level of reserve, PLN?s power supply is in a critical condition. The reduction of 700 MW in the supply resulted from the technical problem in four major power plants has forced PLN to cut off the supply in some areas. The blackout can not be avoided," he said.

He acknowledged that the technical problem-taking place in the Gresik power plant in East Java, Muara Tawar power plant in West Java and the geothermal power plant in Gunung Salak, West Java, was caused by the change in the fuel from gas to diesel oil.

"If there is a technology audit, PLN will be blamed because the use of diesel oil in the gas power plants is technologically wrong. But we did not have any choice but to use diesel oil due to the absence of gas supply," he said. (*)