Java-Bali needs new 1,200 megawatt yearly: Report

Tuesday, May 21 2002 - 08:42 AM WIB

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) said the country needs an additional 1,200 megawatts generator each year to secure supply to Java and Bali, Reuters reported on Tuesday.

The report also said the areas of the country outside those heavily populated islands would need the equivalent of 600 megawatts of new generating power annually.

The report did not specify the number of years in the future for which he projected that need, but Indonesia has previously said it would face electricity shortages at least in 2003 and 2004 if no additional capacity is developed.

"We need a new 1,200 MW power generator (for the) Java-Bali islands and 600 MW outside Java-Bali annually," PLN president Eddie Widiono was quoted as saying.

He said he has encouraged several regencies outside Java and Bali to cooperate with the private sector to build new small-scale power generators with capacity of below 20 megawatts.

"There are proposals from regencies in Sumatra and Kalimantan to build (such generators) using natural gas and coal," he said said.

"We predict electricity demand will grow around seven percent this year. But It mostly depends on the country's economic growth development," he said.

The International Monetary Fund said last week it is possible for Indonesia to reach GDP growth of 3.5-4 percent this year.

Indonesia's state budget assumed GDP growth at 4.0 percent in 2002 against 3.32 percent last year.

Widiono said PLN was still finalizing a revised power purchase agreement with Jawa Power, majority owned by Siemens AG, and also with Paiton Energy, who operate coal-fired generators of 1,230 MW each in East Java.

A PLN official has said it expects to amend purchase agreements with Jawa Power in June and with Paiton Energy, partly owned by Edison International unit Edison Mission Energy, in July. (*)

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