PLN to soon open tender for 6,000 MW power plant projects

Tuesday, July 11 2017 - 01:04 AM WIB


Petromindo

State-owned electricity firm PT PLN is set to hold tender for 6,000 MW power plant projects this year, much of which will be mine mouth coal-fired power plants, Bisnis Indonesia reported on Tuesday.

?This year there will be 6,000 MW to be put on tender. More mine mouth power plants (will be developed) in line with the RUPTL (PLN?s electricity procurement business plan),? PLN Director of Procurement Supangkat Iwan Santoso told the paper.

He said that the average capacity of the mine mouth power plant project to be offered to investors in the tender will be 300 MW. He added that PLN will not procure large plants with capacity of 1,000 MW.

According to the PLN 2017-2026 RUPTL, the utility will procure a total of 16 mine mouth coal-fired power plants with combined capacity of nearly 7,000 MW in Sumatra and Kalimantan, the country?s top coal-producing islands. Minister of Energy and Mineral Resources Ignasius Jonan has instructed PLN to develop mine mouth power plants in the coal-producing regions instead of the regular coal-fired power plants in a bid to minimize transportation cost of the coal which in turn will help cut down electricity production cost.

Supangkat said that the long-planned PLTU Sumsel 9 and PLTU Sumsel 10 coal-fired power plant projects will not be included in the aforementioned tender amid lingering uncertainty over the planned high voltage direct current (HVDC) transmission line linking Sumatra and Java. Electricity from the PLTU Sumsel 9 and PLTU Sumsel 10 projects were initially planned to be transmitted to Java via the HVDC, but the minister has asked PLN to alter the plan, allocating the electricity output for Sumatra. ?These (projects) have yet to be put on tender. The HVDC (project) is still uncertain,? he said. (*)

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