RI to develop 10,000 MW power plants per year

Indonesia must develop power plants with combined capacity of 10,000 MW per year to meet growing demand which in 2031 is projected to jump to 240,000 MW, according to a senior government official.

?The power plant development must not be delayed, otherwise there will be (power) crisis,? said Vice Minister of Energy and Mineral Resources Susilo Siswoutomo on Wednesday at the opening of the 2014 Indonesia Electricity Exhibition in Jakarta.

He explained that assuming annual average economic growth of 5-7 percent, annual population growth of 1.1 percent, and annual electricity consumption growth of 8-9 percent, electricity demand in 2022 is projected to increase to 125,000 MW, and to double to 240,000 MW in 2031.

With existing capacity of 50,000 MW, the country must build about 10,000 MW of new electricity supply per year, he said.

Susilo further explained that assuming investment cost of US$2 per MW, total investment requirement for the development of 10,000 MW power plants is around $20 billion.

?This investment requirement will be fulfilled by PLN (state utility) and private sector,? he said, adding that the government would issue new regulations to ease investment process in the sector.

He said that fuel source for the new power plants will mostly rely on coal and gas as the country would stop exporting coal in the future. He added that new and renewable energy sources will also be increase particularly hydro. (*)