PLN cancels HVDC transmission project

State-owned electricity firm PT PLN has decided to cancel the planned 500 kV high voltage direct current (HVDC) transmission project linking Sumatra and Java islands, reports said on Thursday.

Bisnis Indonesia quoted PLN Director of Corporate Planning Nicke Widyawati said that the HVDC project will no longer be included in the revised electricity procurement business plan of the company (or better known as RUPTL).

PLN is currently revising the 2016-2025 RUPTL, which would be submitted to the Ministry of Energy and Mineral Resources for approval. Under the current RUPTL, PLN is required to develop the HVDC project that would facilitate the distribution of electricity from new power plants being built in Sumatra to Java.

Nicke said that the company decided to cancel the HVDC project because Sumatra is still suffering from power deficit. As such, it doesn?t make sense to build power plants in Sumatra and then distribute the electricity output to Java. ?Sumatra is still in crisis (of electricity). Reserves margin stands at only 10 percent,? she said.

Nicke added that Java will not suffer power supply deficit just because the HVDC project, which has received a US$2.3 billion loan from Japan Internatioal Cooperation Agency (JICA), is cancelled. She pointed out that out of the planned 35,000 MW power plants to be developed until 2019, about 23,000 MW will be located in Java. (*)