PLN will only be able to supply 45 percent of electricity demand

Due to the lack of capacity, state owned electricity company PLN will only be able to meet 45 percent of the electricity demand which is estimated to reach 11,000 Mega Watt in 2010, the company?s president Eddie Widiono Suwondho has said.

"PLN will only be able to provide 45 percent of the total demand or only about 5,000 MW, and the others would be given to private companies to handle," Eddie was quoted as saying by Bisnis Indonesia daily on Saturday.

According to Eddie, the generation of the 6,000 MW electricity supply would not include those to be generated by Tanjung Jati B power plant, which would be soon built after its financial arrangement was completed.

The construction of power plants with capacity of 11,000 MW would cost about US$11 billion. The average cost for each MW of electricity is about US$1 and US$2.

Eddie said that the surge in the electricity demand would represent a big opportunity for private companies to take part in providing electricity supply in the country. According to him many foreign companies have expressed their interest to enter the electricity sector but China is the most aggressive investor so far.

Many Chinese companies have been engaged in the construction of medium-scale power plants in cooperation with local companies. (*)