PLN set to develop 12 new power plants

State-owned electricity company PT PLN has proposed to develop 12 new power plants using its internal funds as a supplementary program to its second 10,000 MW Electricity Crash Program.

PLN President Director Nur Pamudji told House of Representatives Commission VII overseeing energy that his company had officially proposed the plan to the Energy and Mineral Resources Ministry.

?We suggested that the ministry amend a 2010 ministerial regulation on power plant projects using renewable energy, coal and gas [to accommodate the 12 proposed power plants],? he told lawmakers as quoted by The Jakarta Post on Thursday.

There are two hydropower plants: Upper Cisokan hydro power plant in West Java, with a capacity of 4x260 MW and Masang 2 in West Sumatra with 55 MW.

There are also two gas-fired power plants in Tahuna, North Sulawesi (2x4MW) and a gas-fired power plant in Bangkanai, Central Kalimantan, (120 MW) with only one coal-fired power plant in Melak, East Kalimantan (2x7MW).

The remaining seven are coal and gas-fired power plants in Sabang, Aceh (8 MW); Putussibau, West Kalimantan (2x4 MW); Selayar, Central Sulawesi (2x4 MW); Larantuka, East Nusa Tenggara (2x4 MW); Tobelo, North Maluku (2x4 MW); Tual in Maluku (2x4 MW); Tanjung Batu in Riau Islands (8 MW).

Pamudji said that the Upper Cisokan hydropower plant had been included in the 2010 ministerial regulation, however, PLN proposed a capacity upgrade from 4x250 MW.

?The new power plants are necessary to meet the growing demand for electricity, particularly in areas outside of Java? he said.

According to the ministerial regulation, there are 21 power plants that will be constructed by PLN across the country in the second phase of the 10,000 MW fast-track program, while independent power producers (IPP) will set up 71 plants with a total capacity of 5,306 MW.

As of today, from the 21 projects included in the ministerial regulation, only the Upper Cisokan plant has started development. The other projects are mostly in bidding or power purchase agreement phases.

Pamudji also told legislators that as of October 2011, Indonesia?s electrification ratio hit 71.3 percent, slightly above the government target of 70.4 percent. PLN also gained 2.5 million new customers as of the third quarter this year from a target of 1.1 million. (*)