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PLN: Peak load in Java-Bali system breaks new record

Thursday, October 12, 2017

State-owned electricity firm PT PLN said that the Java-Bali system saw a new peak load record of 25,665 MW at 6 p.m. on Wednesday, indicating of rising electricity consumption in the region. PLN Head of Corporate Communications, I Made Suprateka said in a statement on Thursday that the new peak load record in the evening occurred only five days after the previous evening record of 25,414 MW on October 6. “This is a good sign. The electricity supplied by PLN can be absorbed by consumers,” he said. Made said that rising electricity consumption can be also seen from the fact that peak load during the daytime also break a new record of 24,904 MW at 1.30 p.m. on Wednesday. The previous highest day-time peak load of 24,760 MW occurred on October 6. “The installed capacity in the Java-Bali system is currently in surplus condition. PLN will continue to meet the power demand by developing new plants, transmission lines and substations,” he ended.
Editing by Reiner Simanjuntak

Renewable projects face funding obstacle

Thursday, October 12, 2017

A total of 64 renewable power plant projects to be developed by independent power producers (IPPs) are facing difficulties in getting the required funds from lenders although they have signed power purchase agreements (PPAs) with state-owned electricity firm PT PLN, Bisnis Indonesia reported on Thursday quoting data from the Indonesian Chamber of Commerce and Industry (Kadin), a business lobby group. The paper quoted Head of the Association of Hydro Power Plant Developers, Riza Husni as saying that that the renewable projects are facing difficulties in getting loans from banks due to the low tariff of the electricity to be sold to PLN. According to Minister of Energy and Mineral Resources Regulation No 50/2017, tariff of electricity from renewable power plants is limited at 85 percent of so-called local electricity supply cost of PLN (or BPP) where the project is located if it is higher than the national average BPP. If the local BPP is equal to or lower than the national average, then the IPPs can negotiate the tariff with PLN. Husni said that the dozens of PPAs on hydro power projects signed by PLN and IPPs during the past couple of months were mere public relation campaign while in fact many of the IPPs were actually facing funding obstacle due to the unattractive tariff. The government is pushing for the development of renewables including hydro power projects in a bid to help meet its target of renewables to account for 23 percent of the country’s energy mix by 2025, and also to help provide affordable electricity for households in remote regions by taking advantage of local renewable resources such as hydro, solar, and wind.

PLN develops 1,856 km transmission lines in Kalimantan

Thursday, July 06, 2017

By Nova Farida
State-owned electricity firm PT PLN hopes to be able to complete construction of a combined 1,856-kilometer circuit of new transmission lines with capacity of 150 kV in Kalimantan this year. Construction is currently in progress including 474 km in West Kalimantan, 244 km in South Kalimantan, 564 km in Central Kalimantan, and 574 km in East Kalimantan. PLN Business Director for Kalimantan Region, Djoko R. Abumanan said to on Wednesday that in West Kalimantan, transmission lines are to be developed from Siantan to Tayan (184 km), from Bengkayang to Ngabang (180 km), and from Ngabang to Tayan (110 km) In South Kalimantan, transmission lines will be developed from Bandara to Cempaka-Mantui (2 km), from Santui to Asam-Asam Batulicin (2km, and from Barikin to Kayutangi (240 km). In Central Kalimantan, transmission lines will be developed from Muara Teweh to Buntok (220 km), from Tanjung to Buntok (260 km) and from PLTU Sampit coal-fired power plant to Sampit (80 km). In East Kalimantan, a 110-km transmission line will be developed linking the PLTD Sanipah diesel-fired power plant to Palaran, and from PLTU Teluk Balikpapan coal-fired power plant to Petung (90 km), and from Kuaro to Petung (160 k m). Djoko said that next year, PLN will develop another 3,006-km of new transmission lines including 750 km in West Kalimantan, 234 km in South Kalimantan, 1,400 km in Central Kalimantan, 206 km in East Kalimantan, and 416 km in North Kalimantan.
Editing by Reiner Simanjuntak

PLTM Kulon Projo has started operation

Friday, June 30, 2017

By Adianto P. Simamora
PT Dewata Mega Energi, a subsidiary of integrated energy company PT Darma Putera Wahana Pratama (DEWATA), said that its mini hydro power plant (PLTM) project with capacity of 0.6 MW in Kulon Projo Regency, Yogyakarta has started operation since May. “The PLTM Projo has already been in operation since May,” President Director of DEWATA, Paulus W. Broto told, adding that the electricity output is sold to state-owned electricity firm PT PLN. The mini hydro power plant uses the stream water of Van der Wijk canal. The power plant utilizes the Kaplan type turbines which are designed a hundred percent by Dewata's engineers with the total investment of around Rp 22.5 billion.
Editing by Reiner Simanjuntak (hydro power in Indonesia)

PLN takes over construction of E. Kalimantan gas pipeline.

Friday, June 23, 2017

State-owned electricity firm PT PLN has taken over from state-owned oil and gas firm PT Pertamina construction of the planned PK52-Tanjung Batu gas pipeline section in East Kalimantan. Director General of Oil and Gas at the Ministry of Energy and Mineral Resources IGM Wiratmaja Puja said on Thursday that PLN has already made advanced preparations to start construction process of the pipeline project which will be used to transmit gas including from Mahakam block to the utility’s power plants in Tanjung Batu. He said that Minister of Energy and Mineral Resources Ignasius Jonan on June 15 issued a new Ministerial Decree No. 2240 K/10/MEM/2017, which revokes a December 2016 Ministerial Decree No.8078/K/10/ MEM/2016 on the assignment for Pertamina to develop and operate the PK 52-Tanjung Batu gas pipeline facility. According to the previous decree, Pertamina was supposed to team up with PLN in producing the front end engineering design for the project that was supposed to have been completed by November 2016. In its considerations, the new decree is issued as PLN has made preparations to develop the PK 52-Tanjung Batu pipeline including holding tender to select the EPC contractor, and completing the required environmental impact assessment or AMDAL. Bisnis Indonesia quoted data from upstream oil and gas authority SKK Migas said that the pipeline will transmit 40 bbtud of gas from Mahakam, Sanga-Sanga and Sebuku blocks in East Kalimantan for four PLN power plants in Tanjung Batu with combined capacity of 140 MW. (*)

Malaysian firm eyeing Indonesia biogas plant opportunities

Thursday, June 22, 2017

By Alexander Ginting
UK-listed Malaysian firm Green and Smart Holdings plc is evaluating opportunities to build power plant from biogas captured through the treatment of Palm Oil Mill Effluent (POME) in Indonesia. The company in its report released on Thursday said there are approximately 1,000 palm oil processing mills in Indonesia. The company said it will apply normal operational and financial selection criteria in terms of the partners with whom it will seek to contract for biogas plants The company currently operates in the renewable energy sector in Malaysia, focusing on the generation of power from biogas captured through the treatment of POME. The company, through its subsidiaries and Associated Companies, is positioning itself as an Independent Power Producer through the construction, operation and ownership of biogas power plants providing electricity to the Malaysian National Grid. (biogas power in Indonesia)

PLN begins construction of PLTMG project in NTT

Thursday, June 22, 2017

State-owned electricity firm PT PLN held on Wednesday a ground-breaking ceremony to officially start construction of a 40 MW PLTMG Maumere gas engine power plant at Wairita Village, Waigete District, Sikka Regency, East Nusa Tenggara (NTT) Province. Head of Construction Division at PLN’s Sulawesi and Nusa Tenggara Regional Office, Hakim Nawawi said in a statement that construction process is expected to be completed in 15 months. He said that the PLTMG Maumere project forms part of efforts to bolster power supply reliability in the Maumere System which also includes the construction of transmission line and substation. NTT Governor Frans Lebu Raya in his remarks at the ceremony urged the public to support the project by allowing their land to be acquired for the construction of the electricity infrastructure facilities. According to the statement, the Maumere System currently has installed power capacity of 14,250 kW from power plants owned by PLN and leased. Consumption in daytime stands at 7,550 kW, while in nighttime 12,100 kW. Editing by Reiner Simanjuntak (natural gas power plant in Indonesia)

Medco, Phoenix to develop UCG project

Tuesday, June 20, 2017

By Adianto P. Simamora IDX-listed energy company PT Medco Energi Internasional Tbk and Australia-based Phoenix Energy have recently signed a preliminary joint cooperation agreement to develop underground coal gasification (UCG) project. Medco President Director Tonny Prihatna Sastramihardja told on Tuesday that the project would be developed at Medco’s oil and gas concessions in Tarakan (North Kalimantan) and South Sumatra. “The point is that the UCG pilot project is temporarily only to convert syn-gas to electricity..... We actually can also apply it for other purposes (such as fertilizer and chemical),” he said. The cooperation agreement once realized will consist of three phases of works from drilling to the development of a 30 MW power plant. Tonny said that the company is still waiting for a new Minister of Energy and Mineral Resources regulation on implementation of UCG project. “We further formalize cooperation between Medco Mining with Phoenix Energy (Australia) to implement UGC in Indonesia,” he said.
Editing by Reiner Simanjuntak

Terregra to invest $75m to develop N. Sumatra hydro projects

Monday, June 19, 2017

By Thomas Sembiring
IDX-listed power developer PT Terregra Asia Energy Tbk will invest US$70-75 million to develop 4 mini hydro power plants projects in North Sumatra with combined capacity of 36.8 MW. The company has appointed China Energy Engineering Group Guanxi Electric Power Design Institute Co.Ltd as main EPC contractor and is in the process of selecting local civil contractor, President Director Djani Sutedja told Petromindo.Com on Friday. The company will start with construction of Batang Toru 2x5 MW project, and will then continue to Raisan Naga Timbul project with capacity of 2x3.5MW and 2x5 MW and Sisira project with capacity of 1x9.8MW. The company expects the projects will become onstream in 2019.
Editing by Alexander Ginting

PLN seeks for geothermal, coal concessions

Tuesday, June 20, 2017

State-owned electricity firm PT PLN has asked the government for the company to be allocated for up to 14 geothermal working areas (or WKPs), Kontan reported. The paper quoted PLN President Director Sofyan Basir as saying that the company wants to develop its own source of geothermal energy due to the excessive electricity rates charged by operators of geothermal power plants. “I’m not against renewables, but what surprised me is the price,” he said. He suspected there are rent seekers in certain geothermal power plant projects seeking to profit from the booming geothermal sector by charging PLN excessively high power rates. He pointed out that the geothermal power plant operators had offered electricity rate of US$6.5 million per MW, or 13.5 US cents per kWh, compared to only $2 million per MW, or 5 cents per kWh, for coal-fired power plant. Sofyan said that when asked why the power rate is so high, the developer pointed out on the expensive cost of developing infrastructure facilities in remote regions. Sofyan said that rather than providing the developers with excessive profit, PLN wants to develop its own geothermal concessions. Meanwhile, Deputy Minister of Energy and Mineral Resources Arcandra Tahar said that the ministry has approved PLN’s request for 14 geothermal WKPs. Elsewhere, Sofyan said that PLN has also asked the government to provide the company with coal concessions to help ensure coal supply in the future. “The total capacity of our coal-fired power plants is more than 20,000 MW,” he said. He feared that domestic coal miners would prioritize export market when coal price rises, thus undermining the PLN coal supply requirement. “I know that the cost of digging out coal is only $15 per ton, but PLN pays $60 per ton,” Sofyan said. PLN’s coal consumption currently stands at around 86 million tons per year, and is set to further increase over the next few years once it completes a number of new coal-fired power plant projects. (*)