PLN to develop coal gasification power plants

A number of coal gasification power plants will be built in several parts of Sumatra and Kalimantan as part of the program of diversifying power generation technology, Kontan reported on Thursday.

Harry Jaya Pahlawan, PLN?s director for western Indonesia, said in Jakarta on Wednesday that the coal gasification power plants, the first to use the coal gasification technology in Indonesia, would be built by private companies.

He said that the private companies would operate as independent power producers, while PLN would act as buyer.

The first part of the coal gasification power plants would be built in Aceh, with a capacity of 18 megawatt, in Riau and Riau islands with a capacity of 34 MW, in West Sumatra with a capacity of 6 MW, West Kalimantan with a capacity of 38 MW and in Bangka Belitung with a capacity of 5 MW.

Some of the power plants would begin operation this year and some others in 2012.

Harry said the operation of a coal gasification plant is less costly than that of a diesel power plant. The operating cost of a coal gasification power plant is about Rp 1,500 per kWh, or about a half of that of a fuel-based power plant which reaches about Rp 3,000 per kWh. (*)