Operation of PLTU Sumsel 8 delayed to 2023

Petromindo

The commercial operation of the planned 2x620 MW PLTU Sumsel 8 coal-fired power plant in Muara Enim, South Sumatra, will be delayed from the initial plan of 2019 to 2023 when the required transmission system is ready, Bisnis Indonesia reported on Monday.

The paper quoted Procurement Director of state-owned electricity firm PT PLN, Supangkat Iwan Santoso, as saying that electricity from the PLTU Sumsel 8 was supposed to be transmitted to Java via a planned high voltage direct current (HVDC) transmission line linking the two islands, but the plan is now to dedicate the electricity output to meet growing demand in Sumatra as PLN has canceled the HVDC transmission project.

?Sumsel 8 was supposed to enter the Java (system), but has now been changed to enter the Sumatra system, so the COD (commercial operation date) is postponed to around 2023 when the (Sumatra) system is strong,? Supangkat said.

He explained that the Sumatra system currently could not yet accommodate electricity from power plant with capacity of 2x620 MW. If the system is forced to accommodate such huge capacity, the Sumatra system will undergo trouble.

PLN has previously proposed to IDX-listed coal giant PT Bukit Asam Tbk (PTBA), which will develop the PLTU Sumsel 8 power plant project, to revise the capacity design from 2x620 MW to 3x400 MW so that the electricity output can be transmitted via the current 275 kV transmission line in the Sumatra system. ?But (PTBA) doesn?t want (to revise the capacity design of the project), so the COD is postponed,? Supangkat said, adding that a revision of the power purchase agreement (PPA) between PTBA and PLN to among others include the postponement of the COD is expected to be completed soon. PTBA previously said it hoped to conclude the PPA revision in May of this year.

PTBA is teaming up with China?s Huadian Group to develop the estimated US$1.6 billion power plant project. The joint venture company called PT Huadian Bukit Asam Power has already completed acquisition of the required 103 hectares land for the project, which has obtained funding commitment among others from Bank of China. (*)