PT Perusahaan Listrik Negara (PLN) allocated funds up to Rp78.9 trillion (US$5.52 billion) to build 3,132 megawatts (MW) of power plants, a transmission network of 6,776 kilometers, substation capacity of 6,810 megavolt amperes (MVA), and a distribution substations around 1,303 MVA and a number of other programs - Photo by the Company

JAKARTA (TheInsiderStories) – Power producer, PT Perusahaan Listrik Negara (PLN) allocated funds up to Rp78.9 trillion (US$5.52 billion) to build 3,132 megawatts (MW) of power plants, a transmission network of 6,776 kilometers, substation capacity of 6,810 megavolt amperes (MVA), and a distribution substations around 1,303 MVA and a number of other programs.

With the new capacity, the company targeting the revenues could reached Rp391.6 trillion (US$27.38 billion) in 2021 after last year, the financial performance has been hit by the pandemic. The CEO, Zulkifli Zaini, revealed to achieve the targets, the company will make various efforts like increasing sales of electricity, maintain adequate electricity supply, and provide competitive rates for industrial customers.

PLN will also strive to enforce the Domestic Market Obligation of coal and gas in order to ensure certainty of costs and supply of primary energy. In this year, the state-owned utility firm, also aimed to build solar power plant up to 600 MW in the remote areas across the archipelago. The purposes of the plans as part of the company substitution program to convert diesel with green energy-based power plant.

Director of the company, M. Iqbal Noor, explained virtually on Friday (02/08), PLN also plans to utilize biomass power plant. He said, with the acceleration of new and renewable energy its expect could cut the production of the utility provider.

Currently, the realization of the energy mix only 12 percent per annum and its expecting to reach 23 percent by 2025. The Indonesian Solar Energy Association revealed Indonesia needs to build solar power plants more than 1,000 MW every year to meet the gap in the 2025′ National Energy Mix program. The country aimed to achieve 23 percent renewable energy mix target according to the roadmap.

The chairman, Andhika Prastawa, revealed the contribution from solar power plants is projected to reach 6,500 MW in the next five years. Currently the installed capacity in Indonesia is still less than 200 MW. He asserted, “This is our big homework, considering the huge gap between what we have today and the targets.”

According to him, the efforts has made by the government to boost the development of solar power plant in Indonesia. One of them is by providing a legal umbrella for the use of roof power plant for state-owned power producer, PLN through the Energy and Mineral Resources (EMR) Ministerial Regulation Number 13 of 2019.

Based on the ministry data, the potential for solar power plant development in Indonesia to reached 207.8 Gigawatt peak (GWp), with the realization reaching 0.15 GWp. Especially for North Sulawesi, the potential for solar power is 2.1 GWp, said the department.

To support the business expansion in this year, PLN has obtained capital injection amounting to Rp5 trillion (US$357.14 million). The CEO, Zulkifli Zaini, has said the funds will use for transmission and distribution projects. He elaborated, as much as Rp2 trillion for transmission and substation and Rp3 trillion for new renewable energy plants and village electricity support.

Recently, the power producer have signed an agreement with PT Pertamina Hulu Rokan to supply an electricity for the Rokan Block working area in Riau Province. The unit of state-owned energy holding, PT Pertamina, will start operating the working areas starting August 9, 2021.

Based on the electricity sales agreement, Perusahaan Listrik Negara will supply the electricity in two stages starting August 2021 to August 2024. After that, the permanent service will start, where PLN will inter-connect the electricity system at the Rokan block with the Sumatra Grid, with a total capacity of 400 MW.

The company is the country’ largest electricity producer, with a capacity of around 45.7 gigawatt, which accounted for 72.5 percent of the market as of December 2019. It is the sole off taker for Indonesia’ independent power producers.

Recently, the government has reduced the number of new power plant capacity to 15.5 giga watts (GW) in the 2021 – 2030 Electricity Supply Business Plan due to the virus outbreak. According to director general at the energy and mineral resources ministry, Rida Mulyana, the country also reduced the new renewable energy-based power plant targets to 500 MW.

He estimated in the next 10 years, the electricity growth will only 4.9 percent per year, below the initial projection an average 6.4 percent.

US$1: Rp14,300

Written by Editorial Staff, Email: theinsiderstories@gmail.com