Adjust the needs, PLN reviews the mine mouth PLTU to continue

JAKARTA. PT Perusahaan Listrik Negara (PLN) wants the mine mouth steam power plant (PLTU) project to continue, although some of them are currently facing obstacles. Just say, the Riau-1 PLTU was hit by a legal case, and the Kaltim-5 and Sumsel-6 PLTUs were hampered by contract and economic problems.

The Head of the PLN System Planning Division, Adi Priyanto, revealed that the mine mouth PLTU is needed by PLN to streamline the supply cost of the plant (BPP). Moreover, the planning and construction of the plant has taken into account the needs or growth of electricity demand.
“Mine mouth PLTU will be our mainstay for efficiency. The principle is also supply and demand. So we see, if demand continues to rise, we will still build it,” he said.
Compared to the previous period, the National BPP Generation rose by an average of 9% during April 1, 2019 to March 31, 2020. Through the mine mouth PLTU, PLN hopes to gain efficiency amid the rising costs of the BPP.

“Mine mouth efficiency (PLTU) compared to thermal plants can be 20% -40%,” Adi said.

Meanwhile, in the PLN Electricity Supply Business Plan (RUPTL) from 2019-2028, electricity growth is projected at 6.42%. So, Adi said that PLN will conduct an evaluation to look back on how much electricity needs, additional electricity that must be supplied immediately, and which plants can be quickly connected to the system.

“So if demand continues to work, we have to find a replacement, obviously demand cannot be depressed,” Adi added.

Adi admitted that if the mine mouth PLTU project is constrained, the target of commercial operations or the Commercial Operation Date (COD) will be adjusted. Meanwhile, to maintain electricity supply and meet demand, PLN will seek power from other plants, or reschedule plants whose COD can be accelerated.

“If (there is a mine mouth PLTU project) that is problematic, COD will definitely retreat. Later we will reschedule it, but (the power from other plants) the others must enter, we look for the replacement,” Adi explained.

Regarding the Kaltim-5 and Sumsel-6 PLTUs, Adi said that the two projects were constrained by contracts. This is because the economics of tariffs in business to business does not produce a meeting point between PLN and partners.

“It is likely that there is a discrepancy between B and B, because in designing Poryek, we want the most competitive prices,” he said.

Adi said, to continue to build the Kaltim-5 or Sumsel-6 PLTU, PLN could re-negotiate with existing partners, or could also look for other partners. However, he stressed that the decision must consider the decisions of the relevant divisions, such as the procurement, system planning, and also regional PLN business.

“This is also true, we see the process in the Procurement and regional Division, which is the best. If in the Division (Planning), the System wants to be in accordance with the development of demand,” he explained.

As previously reported by, Adaro Energy has withdrawn from the Kaltim-5 PLTU project with a capacity of 2 x 100 Megawatts (MW). Adaro Energy President Director Garibaldi Thohir said that the project was deemed not feasible so it had withdrawn since mid-2018.

Just so you know, the Kaltim-5 PLTU is a joint venture of PLN’s subsidiary, Indonesia Power, along with Adaro Energy’s subsidiary, Adaro Power.

Meanwhile, the Sumsel-6 PLTU project is reportedly not continuing because the tender was stopped. This was stated by Arviyan Arivin, President Director of PT Bukit Asam (PTBA) who will build the 2 x 300 MW capacity project.

“The Sumsel-6 PLTU was not continued by the tender by PLN. There is no certainty from PLN,” he told some time ago.

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