US firm to start study on Sumatra-Malaysia power link project in May

US-BASED engineering services consultancy Shaw PTI USA has been given the green light to conduct feasibility studies on the proposed Sumatra-Peninsular Malaysia Interconnection Project.

In a statement yesterday, Tenaga Nasional Bhd said it had signed an agreement with Indonesia?s PT Perusahaan Listrik Negara (PLN) to allow Shaw to conduct its work beginning next month.

?The study is expected to commence in May with active participation from both parties,? Tenaga said.

The project will further improve the power management of both countries and result in efficiency and cost savings, it said.

?The project will bring greater operational flexibility and better system control. It will also lead to economic benefits arising from different peak load times, reduction in joint production and operating costs, sharing of spinning reserve and mitigation of demand-supply imbalance,? it added.

PLN was reported as saying in June last year that the link for the power supply from Peninsular Malaysia to Sumatra with Tenaga may be opened by 2008.

In its 2002 annual report, PLN said Indonesia?s electricity demand may exceed supply in 2005. Power demand in Sumatra is growing by about 13 per cent annually and the company cannot meet this demand.

Prior to the agreement, Tenaga signed a memorandum of understanding with PLN in April 2002 to pursue the study of the project on a bilateral basis.

The Asean (Association of South- East Asian Nations) Interconnection Master Plan Study had identified the effort as one of the most promising interconnection projects.

?The relatively short distance between Sumatra (and Peninsular Malaysia) and the intensive load centres in Peninsular Malaysia makes this project worthwhile,? Tenaga said.(*)