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PLN to generate 1,695 MW from Rp 16.9 trillion projects

State electricity firm PLN targets adding 1,695 megawatts (MW) of electricity to its Java-Bali system within the next two years through the development of three power plants in the western part of Java island with a combined investment of Rp 16.9 trillion (US$1.24 billion).

The biggest contribution will come from the Java 2 combined-cycle power plant in North Jakarta, which will have a capacity to generate 880 MW once it is fully operational in May 2019. The investment for this project is estimated to reach Rp 6.2 trillion.

PLN has also begun the development of the Unit 4 Lontar coal-fired power plant in Banten with a capacity of 315 MW and investment of Rp 6.8 trillion. Furthermore, it plans to start the construction of the Muara Karang combined-cycle facility worth Rp 3.9 trillion, which will have a 500 MW capacity, in North Jakarta early next year.

The Lontar and Muara Karang facilities are slated for completion in the third quarter of 2019.

“For these three projects, PLN will finance 30 percent through its own cash flow, while the other 70 percent will be funded by export credit agency Japan Bank for International Cooperation,” Robert Aprianto Purba, PLN’s general manager for western Java, said recently.

PLN aims at increasing the electricity reserve margin, or the gap between capacity and peak demand, in its Java-Bali system to 55 percent by 2019 and 41 percent by 2026, from only 27 percent this year.