PT PLN Plans Second 10,000MW Power Program In Indonesia

PT PLN, a state electricity company, plans to construct and manage 40% of second 10,000MW power program, generating loans from foreign banks, reported The Jakarta Post, quoting an official of PT PLN.

It is estimated that the program requires around $17.3 billion. Of the total requirement the company would invest around $3.8 billion and IPPs would invest around $13.5 billion for the second 10,000MW program.

Fahmi Mochtar, President Director of PLN, said: “We are ready to construct 40% of the power plants while the rest will be by independent power producers [IPPs]. We will ask [for] loans from various foreign banks [to finance the projects].”

Fahmi informed that foreign banks involved would include the World Bank, the Japan Bank for International Coorporation (JBIC), German financing institution KfW, the Asian Development Bank (ADB), and perhaps some banks from Saudi Arabia.

A total of 35 power plants would be constructed under the first program. Of the total 35 plants, 10 would be built in Java with 4,337MW of generation capacity, and the remaining would be constructed off the Java-Bali system which would generate 5,626MW of power.

Around 83 power plants would be tendered out, under the second 10,000MW program, which includes 65 plants outside Java.

The second 10,000MW program would produce 12% of power from hydro plants, 48% of power from geothermal plants, and 14% of power from gas plants, and the rest of 26% from coal plants. The second 10,000MW program is due to be completed by 2012.

Fahmi Mochtar continued that the company intends to offer tenders for an add-on gas and coal-fired power plant (PLTGU) Muara Tawar in Bekasi, West Java, a hydro power plant at Upper Cisokan in West Java, which would produce 1,200 and 1,000 megawatts respectively. The bidding processes would commence in September 2009, and the projects would be financed by JBIC and the World Bank.

The company plans to reduce its oil-based fuel consumption from 8.01 million kiloliters in 2009 to 4.56 million kiloliters by 2010 under the second 10,000 MW power plant program.

The company would increase its coal consumption from 23.77 million tons in 2009 to 31.70 million tons by 2010, while gas consumption from 313,716 Billion BBTU in 2009 to 323,447 BBTU by 2010.