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Indonesia launches 2018-2027 electricity supply business plan

JAKARTA (RambuEnergy) – The Energy and Mineral Resources Ministry (ESDM) on Tuesday (13/03) issued the much-awaited electricity supply business plan (RUPTL) for the period of 2018-2027, which shows a more moderate projection than in previous business plan.

The RUPTL basically represents the plan of the state-electricity company PLN’s to procure electricity from the power plant producers, including private Independent Power Producers (IPPs). The business is also used as a guideline as to which locations PLN may wish to see power plants are to be developed.

The Energy and Mineral Resources Minister Ignasius Jonan said the ten business plan is in line with the 35 GW power plant program.

Based on the RUPTL, the government projected the electricity demand of 6.87% per annum, lower than the growth of 8.3% in the RUPTL for the period of 2017-2026.

During the 10-year period, the government aims to add 56,024 MW of power plants, lower than the previous projection of 78,000 MW set in the 2017-2026 ten-year plan.

Meanwhile, the coal-fired power plant remains the main source of electricity supply, contributing 54.4% by 2025, followed by renewable energy at 23.0%, gas 22.2% and gasoline 0.4%.

Based on the business plan, the government will develop 65,855 kilometers of the transmission network, substations at a volume of 151,424 MVA, distribution network along 526,390 km and distribution substation of 50,216 MVA.

He said under the latest business plan, coal-fired power plants are slashed by 5,000 MW, gas power plant cut by 10,000 MW, hydropower plant by 1,000 MW and geothermal power plant is cut by 1,000 MW.

Meanwhile, the installed capacity of renewable energy is raised to 2,000 MW higher than the capacity of 1,200 MW set in previous year’s RUPTL. (*)

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