JAKARTA (RambuEnergy.com) – State electricity company, PT Perusahaan Listrik Negara (PLN) has decided to call off its early plan to develop mega coal-fired power plant PLTU Java 5, with installed capacity of 2×1000 MW.
The power plant was supposed to be developed by subsidiary of PLN PT Pembangkit Jawa Bali.
Director for Procurement of PLN Supangkat Iwan said at the Energy and Mineral Resources Ministry office on Monday that the Java 5 power plant will not be carried on given the lower than expected economic growth.
In addition, PLN has decided to delay the signing of power purchase agreement (PPA) for power plant projects with combined capacity of 9,000 MW located on Java Island. The reason for the delay was because the Java Island is projected to record oversupply of electricity by 5,000 MW.
In addition, said Iwan, there are 4,000 MW of power plant projects that are still in the process of signing contract. He said PLN will not sign other power purchase agreement before these 4,000 MW of power plant projects are signed.
Based on the latest Electricity Supply Business Plan (RUPTL), the electricity supply on Java Island will rise by 39.1 GW within ten years, higher than Sumatera Island at 21 GW, Kalimantan 6.9 GW, Sulawesi 8.6 GW and Maluku Papua 2.1 GW.
The electricity demand on Java Island is projected to grow by 7.2% per annum in between in the period of 2017-2026. The demand is higher than the electricity demand in Sumatera (11.2%), Kalimantan 10%, Sulawesi 11.7%, and Papua 10,5%.
The Indonesian government is embarking on ambitious target to develop up to 35 GW of power plants capacity, however the move was partly opposed by some observers.
Iwan said initially Java and Bali are projected to add 21,252 MW or 59.65% of the 35,000 MW power plant project. The existing capacity of power plants on the Java Island at 13,000 MW is considered enough to cover consumers demand. (*)