PLN Batam expands capacity of power plants

Monday, December 30 2013 - 04:46 AM WIB

PT PLN Batam, a subsidiary of state-owned electricity company PT. Perusahaan Listrik Negara (PLN), is expanding the capacity of its power plants ahead of a planned initial public offering (IPO).

Company Corporate Secretary Kurnia Rumdhony said over the weekend in Batam that owned power plants currently account for only about 20 percent of its power supply, with the bulk 80 percent source from independent power producers (IPPs).

He said that the company aims to expand the capacity of its own power plants to account for 50 percent of the power supply.

Kurnia added that the expansion of the capacity bodes well for the company?s image ahead of a planned 2014 IPO as it would erase the public perception of the company being merely as a ?trader?.

To achieve the target, PLN Batam has been making investments in new power plants, some of which will begin operation in 2014/2015 including the 2x65 MW Tanjung Uncang gas-fired plant, and the 2x100 MW Batam coal-fired plant.

The Rp 1.3 trillion Tanjung Uncang power plant has already entered the stage of construction. Gas for the plant will come from the Gajah Baru field in Natuna. Meanwhile, feasibility study for the Batam coal-fired plant has been completed.

Meanwhile, Tagor Sidjabat, Operational Director of PLN Batam said that the two power plants will increase electricity supply in Batam Island, which currently has installed capacity of 392 MW, compared to peak load of 310 MW. About 70 percent of the electricity supply in Batam is sourced from gas-fired plants, and the remainder 30 percent from coal-fired plants.

He added that electricity supply will be further strengthened with the planned operation of an interconnected power transmission between Batam and Bintan islands in June of 2014.

Elsewhere, Tagor said that PLN Batam is also making efforts to improve efficiency by stopping the use of costlier petroleum fuel at its power plants. The result is average electricity tariff of Rp 1,176 per KWh, which is lower than the national average. In fact, Tagor added, that the electricity tariff in Batam is no longer subsidized by the government.

Editing by Reiner Simanjuntak

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