PLN to review Sumatra-Java transmission project

Despite the government?s demand for state-owned electricity company PLN to include the planned high voltage direct current transmission (HVDC) project in the new 2016-2025 electricity procurement business plans (or RUPTL), the utility company insisted it would have to first review the project.

This was said by PLN President Director Sofyan Basir was quoted by Kontan.co.id Tuesday. He argued that PLN has to review the project, aimed to transmit power from Sumatra to Java, because the condition of Sumatra is now different than a decade ago as the island needs huge electricity supply. ?If we transmit the power from Sumatra to Java, will this not anger the people in Sumatra?? he said.

He said that PLN will need about one or two months to complete the review.

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) earlier said that its planned 2x630 MW mine mouth power plant in South Sumatra (Sumsel 8) in a joint venture with China?s Huadian Group hinges on PLN?s commitment to develop the HVDC transmission project. PTBA said that PLN must issue a letter of interest on the HVDC project to help ensure funding for the power plant project.

A source told this portal that PLN had initially dropped the HVDC project and three coal-fired power plant projects including Sumsel 8, 9, and 10 from the 2016-2025 RUPTL, but the government after reviewing the RUPTL proposed by PLN demanded the utility to include the projects in the electricity development blueprint. (*)