PLN to allocate Rp 29.42 trillion to buy electricity in 2012

State electricity company PLN plans to allocate at least Rp 29.42 trillion (US$3.2 billion) next year to buy electricity from indepedent power producers (IPP), Investor Daily reported on Wednesday.

Murtaqi Syamsuddin, the director for plannning and risk management, said in Jakarta on Tuesday that the figure rose by 5.5 percent from Rp 27.86 trillion last year. ?The increase is partly caused by the operation of new private power plants in Cirebon and in Jeneponoto in South Sulawesi.

He estimated that the capacity of private power plants operated by IPPs would increase in 7,604.5 megawatt (MW) next year.

According to data provided by PLN, the state electricity company spent Rp 21.83 trillion in the first nine months of this year, a 19.1 percent increase from Rp 18.32 trilion in the same period last year.

With the increase in the power generation capacity, PLN planned to provide electricity connection to at least 2.5 million housholds next year. ?The new connections will increase the electrification capacity to 73.6 percent in 2012 from 70.4 percent this year,? he added.

IPPs which have so far sold electricity to PLN include PT Paiton Energy, which booked total sales of Rp 5.27 trillion, PT Jawa Power with total sales of Rp 4.84 trillion and PT Sumber Segara Primadaya with total sales of Rp 1.99 trillion in the first nine months of this year.

Meanwhile, investment to be allocated by PLN next year is expected to reach Rp 57.7 trillion, down 25.4 percent from Rp 77.39 trillion this year. About Rp 28.6 trillion of the investment will be used to increase power generation capacity, about Rp 18.5 trillion to build power houses and transmission facilities and the remaining Rp 10.6 trillion for power distribution. (*)