PLN to save fuel costs in 2012

With the operation of some coal-fired power plants and the Floating Storage and Regasification Unit (FSRU) next year, state electricity firm PT PLN targets to use more coal and gas ? thus consequently less diesel fuel -- to fire its power plants in 2012.

The targets are part of PLN?s 2012 Business Plan approved by the Shareholder?s meeting at the Office of State Enterprises Ministry.

More coal consumption is supported by the operation of several coal-fueled plants (PLTU) under the first phase of the 10,000 MW crash program. PLN targets to consume 39.60 million tons of coal next year, a 34% increase from 2011?s realization.

While the FSRU project, scheduled to start operation in April, will help boost gas consumption by 25% to 356.36 Terra British Thermal Unit (TBTU).

As consumption of coal and gas increases, PLN expects to cut the use of diesel fuel by 30 percent next year to 7.49 million kilo liters. In total, diesel fuel is targeted to make up for 17.73% of PLN?s fuel mix in 2012, a significant reduction from this year?s realization of around 27.40%.

All in all, the company expects to cap principal production cost (BPP) at Rp 1,166/kWh in 2012, about 13.2% lower than this year?s realization.

To help achieve the target, PLN sets aside Rp 69.123 trillion in capital expenditure. Next year, 2,540,000 new customers have been targeted to help PLN achieving the government?s program of realizing a minimum electrification ratio of 60% for every province. Nationally, the electricification ratio target is set at 75%. (godang)