PLN Batam will build two coal-fired power plants to boost supply

PLN Batam, the state owned electricity company PLN?s subsidiary in charge of power generation and distribution on Batam island, and the Authority of Batam, plan to jointly build two coal fired power plants with a capacity of 2 x 50 MW in a bid to increase the electricity supply on the industrial bonded island next year, Bisnis Indonesia reported on Saturday.

The company?s corporate secretary Bintaro said in Batam on Friday that PLN Batam and the Batam Authority would soon establish a joint venture to be in charge in the construction of the new plants which will absorb investments of about US$100 million.

He said that the construction of the two new plants which would be located in Telaga Punggur district would start next year. "We hope the new plants will be able to operate early 2005," he noted, adding that the new plants would use coal as its raw materials in a bid to reduce production costs.

The new power plants will increase PLN Batam?s generating capacity to 250 MW from 150 MW at present. Of the current power supply, 50 MW of the electricity are generated from 23 diesel power generators rented from private companies.

The operating costs of PLN Batam are higher than those of PLN?s other branches in the country because all of the power generators use diesel oil as its fuel. (*)