PLN to soon operates second marine vessel power plant

State-owned electricity firm PT PLN will soon operate its second marine vessel power plant (MVPP) to be stationed in Belawan, North Sumatra, with a capacity of 240 MW.

Director of Business for Sumatra Region at PLN, Amir Rosidin told a press conference on Wednesday that the capacity of the second MPVV is twice that of the first 120 MW MVPP, stationed in Amurang, Minahasa Selatan Regency, North Sulawesi.

Amir said that the MPVV can be powered either by heavy fuel oil (HFO) or gas, adding that in the early stage, PLN will use HFO, which is cheaper than marine fuel oil. Basic production cost of HFO in September stood at Rp 1,800 per kWh, compared to MFO at Rp 2,300 per kWh.

Going forward, PLN will switch into gas for the MVPP, seeking additional LNG from the Tangguh LNG plan, depending on the gas price.

PLN?s first MVPP was leased from a company in Turkey for five years. The company did not say where the second MVPP came from.

PLN has previously said it will sign contracts to lease similar power plant to be located in northern Sumatra (240 MW), Kupang (60 MW), Ambon (60 MW) and Lombok (60 MW).

One of the advantages of such power plant is that it is easy to be relocated. It takes only three to four weeks to move it from one location to another. It will allow PLN to cut costs by Rp 350 billion per year and quickly meet power demand in one area in case of shortage of power. (*)