PLN will continue plan to build three big power plants

State-owned electricity company PT Perusahaan Listrik Negara (PLN) will continue the plan to build three major power plants -- gas-fired Pemaron power plant (150 MW) in Bali, coal-fired Cilacap power plant (2x300 MW) in Central Java and gas-fired Cilegon power plant (750 MW) in Banten – the Investor Indonesia newspaper reported in its Thursday edition.

This was disclosed by PLN president Eddie Widiono after attending a hearing with the House of Representatives Commission VIII on energy in Jakarta on Wednesday.

The Commission VIII approved PLN’s plan and said it would support the plan. But it said it would supervise strictly the building of three power plants.

“The House Commission VIII said it would support the plan after it received full details,” Eddie said.

The House summoned Eddie to explain the full details of these projects, as several pro-contra arguments emerge in the society. Local villagers had protested the construction of the Pameron plant, while there has also been question regarding the selection of the contractor for the Cilegon plant.

The three projects, according to Eddie, are very important because they will guarantee the supply of electricity during the expected power crisis in 2006. They will mainly support the Bali-Java power supply system.

He mentioned that the construction of these three plants, which were inaugurated recently, would save lot of money for the PLN. It is estimated that the electricity production cost will drop to Rp 560 kWh (kilowatt per hour) from the present Rp 620 kWh.

The operation of three new power plants within the next two years will enable the state owned electricity company PLN to reduce production cost by up to Rp10.7 trillion, Eddie said.

Pemaron and Cilegon power plants will use gas and Cilacap power plant will use coal to produce electricity. Both the gas and coal are less expensive than fuel. (*)