PLN Optimistic to Complete 35 Thousand MW Power Plant Project

Jakarta (Antara Bali) - The state-owned electricity company, PLN, is optimistic about carrying out completing the power plant construction project, with a total capacity of 35,000 MW, by 2019.

"We will run the government program to build the 35,000 MW power plant," Director of Strategic Procurement and Primary Energy of PLN Amin Subekti said here Friday.

PLN could meet the target of signing a power purchase agreement (PPA) totaling 10,000 MW, he believed.

There have been several agreements signed by PLN with other parties including the Gas and Steam Power Plant (PLTGU) Grati, located in Pasuruan, East Java province, amounting to 450 MW, according to him.

"Next week there is also the New and Renewable Energy, and Energy Conservation (EBTKE) Connect, which we will sign for one unit of coal power plant of 70 MW and one unit of hydropower plant of 3x13 MW, and solar power plants to reach eastern region of Indonesia," he said.

The PPA of 10,000 MW can be signed this year, Subekti believed.

Director General of Electricity, the Ministry of Energy and Mineral Resources, Jarman, is optimistic that PLN will sign the PPA of 10,000 MW as planned.

"At first, the independent power producer (IPP) received 25,000 MW, and PLN got 10,000 MW. But, it was then converted into 30,000 MW for IPP and 5,000 MW for PLN. From the IPP alone, a minimum of 10,000 MW is expected to be signed this year through PPA, while the rest will be set by 2016," he explained.

By signing the PPA in this year it is expected that the power plant project will be completed by 2019, Jarman added.

Earlier, Minister of Energy and Mineral Resources Sudirman Said was optimistic that the power plant construction program of 35,000 MW could be achieved.

The statement followed criticism delivered by Coordinating Minister for Maritime and Resource Rizal Ramli, who believed that the project was difficult to achieve and unrealistic.

"We are optimistic about completing the project. The challenge is about the project management, the land and licensing," Said remarked. (WDY)