PLN begins construction of Baliem 2 hydro power plant

State-owned electricity company PLN held a ceremony on Wednesday in Wamena, Papua, to mark the start of the construction of the 50 MW Baliem 2 hydro power plant, with an outlook that it could begin commercial operation in 2017.

In a ceremony attended by top company and government officials on Wednesday in Wamena, Papua, state-owned electricity company PLN started the construction of the 50 MW Baliem 2 hydro power plant in Papua.

The company said in a statement that according to a hydro power potential study made in 1999, the Baliem River in Papua holds the potential to generate up to 880 MW electricity. The Baliem 2 power plant itself could potentially be further expanded to 170 MW.

Total investment for the construction works of the Baliem 2 hydro power plant is estimated to reach Rp 4.9 trillion.

PLN President Director Nur Pamudji said that the new power plant should help increase electrification ratio in seven regencies around Baliem, and should help accelerate economic development in the region.

State Minister of State-Owned Enterprises Dahlan Iskan, who attended the ceremony, said that the Baliem 2 hydro power plant should help reduce the fuel cost of PLN by no longer totally relying on fossil fuel power plant. He estimated that the cost saving potential could reach Rp 2.4 trillion per year.

Dahlan also said that with the increasing availability of electricity in the region, he would ask state-controlled cement maker PT Semen Gresik to look into the possibility of developing cement production there, by utilizing the local raw material resources, and would help in resolving the cement shortage in Papua.

Editing by Reiner Simanjuntak