Published on 03/11/2014
PLN ready to build 15,000-MW power plants State-owned electricity company PT PLN (Persero) has said it is ready to develop power plants with a total capacity of 15,000 Megawatts (MW) within five years, starting from 2015. “From the government’s program to develop 35,000-MW power plants by 2020, PLN is ready to build power plants with a total capacity of 15,000 MW while the remaining 20,000 MW will be built by independent power producers [IPPs],” said PLN president director Nur Pamudji, as quoted by Antara news agency in Jakarta on Monday. He said PLN would begin building the 35,000 MW power plants next year, adding that the execution of the construction projects would be different for each type of power plant. Which portions of the power-plant construction projects were handled by PLN and which would be handled by IPPs remained in discussion, he explained. Nur went on to say that the power-plant construction project would cost around US$1.5 million per MW. “It may even be higher because we also have to develop its transmission network,” he said. The cost of constructing a transmission network is lower than power-plant development. Constructing a transmission network from Palembang to Riau costs around Rp 10 trillion ($1 billion). “The development of a steam-fueled power plant may take around five years while for a hydropower plant, it could take even up to seven years,” said Nur, adding that the power-plant construction program was one of Indonesia’s efforts to push economic growth. To meet the country’s growing electricity demand, President Joko “Jokowi” Widodo has ordered the development of power plants with a total capacity of up to 35,000 MW within five years, providing additional electricity supplies from the currently installed power capacity that reaches only 40,000 MW.