PLN buys coal from spot markets to solve coal supply crisis

State-owned electricity company PT Perusahaan Listrik Negara (PLN) has purchased coal from spot markets to provide additional coal supply for its Tanjung Jati B and Paiton coal-fired plants in a bid to solve power crisis in Java, Republika reported Saturday.

PLN?s President Director Eddie Widiono said in Jakarta Friday that the company was compelled to buy coal from the spot markets to solve coal supply crisis confronting several power plants linked to the Java-Bali power grid.

According to Eddie, the company had most recently bought coal from a coal terminal in Bukit Asam, Semarang, Central Java.

Despite the additional coal supplies, PLN is still suffering a power deficit of 300 MW or two percent of the total volume needed to fulfill demands on Java and Bali islands.

Power plants in Java have had problems to get coal becuase many vessels were unable to transport the fuel from coal producing areas in Kalimantan due to high waves.

Meanwhile, PLN?s Acting Director of Plant and Primary Energy Fahmi Mochtar said that the Tanjung Jati B power plant in Central Java and the Paiton power plant in East Java will get additional coal supplies of 130,000 tons and 5,000 tons respectively in the coming days.

"There are two vessels parked offshore Java from Feb. 12 through Feb. 19, carrying between 60,000 and 65,000 tons of coal respectively," he said.

One of the vessel was expected to enter Tanjung Jati B's jetty today (Saturday) thanks to a favorable weather condition. The power plant is currently using oil fuel to operate, according to PLN's Corporate Secretary Ario Subijoko.

Fahmi also said that the coal-fired power plant in Cilacap, Central Java had sufficient coal stock for at least five days. (*)