Electricity provision: PLN ready to continue hampered power plant projects
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Bisnis Indonesia - Penyediaan listrik: PLN siap lanjutkan proyek pembangkit terkendala
15 October 2021
By: Rayful Mudassir
Bisnis, Jakarta – PT PLN (Pesero) stated that they were ready to continue several power plant projects that were hampered. All of the power plants are set to commence commercial operation by 2029 at the latest by still considering the electricity demand of citizens.
PLN Commerce and Management Director, Bob Saril, said that the projects were hampered by electricity demand at the power plant locations.
“Adjusting demand and supply. Our demand did not grow as expected,” he said to Bisnis recently.
He said that the company was adjusting the procurement of the power plant projects with the primary energy supply, the regional potential, and the demand for operation reliability.
Based on the 2021-2030 PLN long-term electricity procurement plan (RUPTL), there are 34 power plant projects hampered. Most or 31 of the power plant projects are coal-fired power plants (PLTUs) and the rest are mini-hydro power plants. The total capacity of all of the power plants reaches 625 megawatts (MW).
Some of the problems include land acquisition, relocation, spatial planning, and contractor capability to finish the projects. However, the projects will still be carried out after considering that electricity infrastructures are still required by local electricity systems. Hence, PLN will still carry out the projects using the company’s budget.
Regarding the capability of contractors, PLN has asked the help of the Development Finance Comptroller (BPKP) to ensure the sustainability of the hampered projects.
If BPKP’s result mentions that a project should be terminated, PLN will build the transmission network and substations with other power plants.
On the other hand, Bob mentioned that the current RUPTL was greener, so there were many power plants replaced by new renewable energy power plants.
Meanwhile, PLN Primary Energy Director, Rudy Hendra Prastowo, said that coal-fired power plants were currently the most affordable and accessible domestic energy source.
“Many PLTUs are under a contract as they are an affordable energy source and coal are widely available in the country,” he stated.
Out of the 34 hampered power plants, there are nine projects that have commenced commercial operation with same fuel, different fuel, or different substation.
Besides that, there is one hampered project that is terminated, which is Ambon Waai PLTU with a capacity of 2x15 MW. The projects that will be finished soon are Malinau PLTU 2x3 MW, Tanjung Redeb PLTU 2x7 MW, Sofifi PLTU 2x3 MW, and Talaud PLTU 2x3 MW.
The workability of Parit Baru PLTU 2x50 MW, Bengkayang PLTU 2x17.5 MW, Alor PLTU 2x3 MW, and other power plants are evaluated to be excellent in terms of their legal and physical construction aspects.
Review
On the other hand, Institute for Essential Services Reform (IESR) Executive Director, Fabby Tumiwa, said that problematic power plants were generally small scaled. Moreover, some of the power plants are located in remote areas.
Besides that, PLN must face the possibility of limited financing support in rebuilding PLTUs.
“As they are small projects, I think that, even if they receive funding, the interest rate will be high. Moreover, adding the price of coal and the coal transportation cost, the electricity price from the PLTUs will be quite expensive,” he told Bisnis on Thursday (14/10).
Hence, he is asking the electricity company to reconsider continuing the projects. He also suggests that, if the projects are continued, then it will be better to replace them with new renewable energy power plants.
“By replacing PLTUs with new renewable energy power pants, PLN will benefit more in the long term,” he explained.
