Mine-mouth coal- fired power plants under threat

Tuesday, April 10 2007 - 05:00 AM WIB

Result of feasibility study by state electricity firm PT PLN about transmission network from Sumatra to Java transmission would determinate the continuation of mine-mouth coal-fired power plants Musi Rawas and Bangko Tengah, Investor Daily reported.

?Both are mutually related. Power plants could not be built if could not be economically dristributed," said Director General of Electricity and Energy Exploitation J. Purwono in Jakarta last week.

PT Triaryani in cooperation with Sojitz Cooperation and AES Cooperation would build mine-mouth Musi Rawas (2 x 600 MW) in with investment amounting to US$1.5 billion, while PT Tambang Batubara Bukit Asam embracing Huadian Engineering plans to build mine-mouth Bangko Tengah ( 4 x 600 MW) with investment worth US$2.6 billion. Both are located in Southern part of Sumatra.

PLN?s Transmission and Distribution Director Herman Darnel Ibrahim disclosed that his side had completed internal feasibility study about transmission from Sumatra to Java and the Transmission and Load Regulating Center (P3B) is organizing tender for independent feasibility consultant to analysize aspects of economy, physical installation and fuel and the process is expected to complete April ? May 2007.

PLN expected that the price of electricity supplied from Sumatra to Java could be lower than US$0.5 per kWh. The building of Sumatra transmission network is predicted to cost around US$550 million and Japan Bank for International Cooperation had been committed to providing US$120 million, he went on. (*)

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