JAKARTA (RambuEnergy.com) – The coal needs of the state-owned electricity company PT Perusahaan Listrik Negara (PLN) is projected to reach 96 million tons (Mt) this year, which is 5% higher than realized coal consumption last year at 91.1 million.
The realized coal consumption last year was slightly lower than the target of 92 Mt.
The projected increase was due to additional demand from the new coal-fired power plants, which are scheduled to begin commercial operation this year.
The Head for Coal Division of PLN Harlen was quoted by Kontan as saying that this year, PLN’s power plants consumed around 7.5-8 Mt of coal per month.
Based on the prevailing domestic market obligation requirement, coal producers are required to allocate 25% of their coal production to the domestic market. Those failed to meet the requirement will be given disincentive by approving lower production quota.
Meanwhile, Director General for Coal and Mineral at the Energy and Mineral Resources Ministry Bambang Gatot Ariyono sid in 2019, the energy ministry sets coal production target of 479.83 Mt. Of this, 128.08 Mt will be allocated to domestic market under the DMO scheme or 26.68% of the national coal production.
Of the total coal sold to domestic market, 95.73 Mt would be allocated to PLN’s coal power plants, metallurgy coal 5.4 Mt, fertilizer industry 1.49 Mt, cement 16.15 Mt, textile 3 Mt, paper 6.2 Mt and coal briquette 14,500 tons.
Last year, the realized DMO reached 115.09 Mt, 91.14 Mt of which was absorbed by PLN. (*)