PLN to auction 157 renewable power plant projects. State electricity firm PLN intends to auction at least 157 renewable energy-based power plant projects within the next two years as part of the company’s plan to increase the contribution of renewable energy to the national energy mix, the Energy and Mineral Resources Ministry has said.
The ministry’s diversified new and renewable energy director Harris said in Jakarta on Wednesday the tender for the renewable power plants would be opened soon after all the preparations including the feasibility studies were copleted.
“The auctions of the potential projects are still under preparation. The process will take a long time, starting from a feasibility study to approval process from the PLN board of directors,” he said.
Harris said the 157 power plant projects were expected to be able to generate 4,718 megawatts (MW). Among the projects are hydro-based power plants, solar power plants and geothermal power plants. They are located in in Sumatra, East Java, Central Java, West Java, Kalimantan, Bali, Nusa Tenggara, Sulawesi and Maluku.
Of the total, 25 projects will be located in West and East Java, and about 50 projects in Bali, East Java and Nusa Tenggara. “The realization of the power plant projects depends on the position of the electricity supply and demand,” he said, adding that their construction should not lead to oversupply.
The government aims to increase the contribution of renewable energy to the national energy mix to 23 percent by 2025.
At present, the electricity from renewable power plants accounts for only 26 percent of the 45,200 MW power supply the government expects from such plants.
PLN has set a target for electricity sales this year of 245 terawatt hours (twh), about 2.5 percent higher than last year. The firm said earlier that the Java-Bali power grid had an excess of around 38 percent.
Fabby Tumiwa, the executive director of energy watchdog the Institute for Essential Services Reform (IESR) criticized the slow pace of PLN’s auction process for new power plants.
“Some of PLN’s plant auctions have been delayed because of regulatory changes that have badly affected the development of renewable energy,” he told The Jakarta Post.
There has been no new construction of geothermal power plants in the last three years because of the regulatory problems, he added. Further criticism of PLN’s auction process came from Adaro Power vice president Dharma Djojonegoro, who said the company had been waiting a long time for the auction of PLN’s renewable energy power plants.
“We have submitted proposals for a number of projects in Sumatra and in Bali, but there has been no response. For the projects in Sumatra, we have waited for one and a half years,” he said previously.
Separately, the energy ministry’s directorate for geothermal energy will auction at least four geothermal working areas (WKP) this year with a total power capacity of 395 MW.
The projects include Telaga Ranu WKP in North Maluku with reserves of 85 MW, Sembalun WKP in West Nusa Tenggara (100 MW), Gunung Wilis WKP in East Java (50 MW) and Gunung Galunggung WKP in West Java (160 MW).
“We aim to hold the auction this month,” the ministry’s director for geothermal, Ida Nuryatin, said recently. PLN to auction 157 renewable power plant projects (Stefanno Reinard Sulaiman, The Jakarta Post)