PLN to build 15.000 MW power plants

Jakarta (ANTARA News) - State-owned electricity company PLN is planning to build power plants with a combined capacity of 15,000 megawatts (MW) until 2020, its President Director Nur Pamudji said.

"The government has set a target of building power generators with a capacity of 35,000 MW up to 2020. However, PLN is only able to build 15,000 MW of the target," Nur Pamudji said on Monday.

He said that the remaining 20,000 MW would be built by independent power producers (IPPs).

The program to develop 35,000 MW power generators will begin next year (2015). The work will differ from each type of plants.

Nur Pamudji said that the 15,000 MW - 20,000 MW portions between PLN and the IPPs still could change later, depending on the plant types, whether hydro power (PLTA) or steam power plants (PLTU).

The cost for the construction of the power generators is about Rp1.5 million per MW. "The cost of that amount is for generator development, excluding that for the construction of its transmission networks.

The transmission development cost is far lower, he said.

PLN President Director Nur Pamudji said the cost for transmission development from Palembang to Riau for example is about US$1 billion or about Rp10 trillion.

He said that the construction will start in 2015 and was expected to be completed in five years for PLTUs and in about seven years for PLTAs.

Pamudji said that the construction of electricity generators was one of the ways to boost economic growth.

"Power supplies must be increased. Later, PLN will build more coal-fired electricity plants," he added.

In order to meet national needs for electricity, President Joko Widodo has instructed the development of a 35,000 MW power plants. The nations power capacity now is still recorded at 40,000 MW.

In the meantime, German Ambassador to Indonesia Georg Witschel said his country will invest EUR 175 million (US$220 million) in hydro power projects in Indonesia.

"Germany has just committed EUR 175 million in the form of a preferential loan for Indonesias sustainable Hydropower Program," Georg stated during a press conference here on Thursday.

He added that the embassy sent an official note to the Development Planning Board (Bappenas) regarding the loan on Wednesday, Oct 29.

An agreement, according to Georg, had been reached during a government to government meeting held in Jakarta on November 14, 2013.

"The aim of the program is to promote the utilization of Indonesias vast hydro energy resources and help the government achieve its goal of improving electricity generation from renewable sources," Georg noted.

The Ambassador remarked that the program also aimed to reduce Indonesias greenhouse gas emissions.

The German party will give the budget to State Electricity Company (PLN) to build hydropower stations.

"It is a direct loan to PLN. I hope the program will start in 2014 since we have sent the note to the Bappenas," Head of the Development Cooperation of German Embassy Ina von Frantzius said.