Jakarta, Sept 8 (Antara) - The government has resolved to continue building the proposed electricity project with a total capacity of 35 thousand megawatts (MW) to meet the shortage of electricity supply in the country.
The installed capacity of electricity nationwide is predicted to be 50,000 MW this year. This capacity will be used to supply electricity to about 250 million people.
Thus, with the country's current capacity estimated to be 50 thousand MW, the completion of the power plants, with their targeted capacity of 35 thousand MW, is expected to raise the country's total electricity generation capacity to 85 thousand MW by the end of 2019 or when President Widodo's term ends.
The government reaffirmed its resolve on Tuesday to continue with the development of the massive power plant.
"The capacity of the power project will remain unchanged. It will not be reduced to (16 to 18 thousand MW)," Vice President Jusuf Kalla said on Tuesday.
Meanwhile, Coordinating Minister for Maritime Affairs, Rizal Ramli had said on Monday that the 35 thousand megawatt (MW) power project was unlikely to be completed within five years.
"After we discussed it, we realized that it is impossible for us to complete the construction of the 35 thousand MW power project in five years. It is likely to be achieved only in 10 years," he said.
Ramli added that the likeliest projects to be completed in the coming five years would be those with a combined capacity of 16 thousand to 18 thousand MW. This is the likeliest possibility to supply the peak burden in 2019.
"After we discussed it deeply, we found that the most feasible would be the 16 thousand to 18 thousand MW power project. This capacity is actually already very large," he stated.
Minister Ramli also said that if the construction of the power project is completed within five years, there will be excess power of about 21 thousand MW.
"PLN will experience a capacity over its peak burden until 2019, which according to our calculation amounts to 74 thousand MW, or about 21,331 MW in capacity will remain idle," he said.
He added that based on the regulations, the electricity company is required to purchase 72 percent of the existing power supplies, regardless of whether it is used or not.
"If the power project is realized in 2019, it will exceed demand, while PLN is required to purchase electricity from private companies for at least U.S.$10,763 billion per annum," he pointed out.
Ramli had made the statement on Monday after chairing a coordination meeting, which was also attended by the Minister of Agrarian Affairs and Spatial Planning/Head of the Land Agency, Ferry Mursyidan Baldan, Power Director General, Jarman, President Director of state-owned electricity company PLN, Sofyan Basir, representatives of the Ministry of Home Affairs, the National Nuclear Agency, the Ministry of Forestry and Environment and the Agency for Assessment and Application of Technology.
The coordinating minister also said that the likeliest projects to be completed in the coming five years are those with a combined capacity of 16 thousand to 18 thousand MW. This is the likeliest possibility to supply the peak burden in 2019.
"After we discussed it deeply, we found that the most feasible is the 16 thousand to 18 thousand MW power project. This capacity is actually already very large," he stated.
However, Vice President Jusuf Kalla said the capacity target of the power project, proposed to be built until 2019, will remain as earlier planned at 35 thousand megawatts (MW).
The Vice President made the statement while denying the outcome of Monday's talks, where it was reportedly decided to reduce the capacity from 35 thousand MW to 18 thousand MW only.
"That is not true. I have checked it with the President Director of state-owned electricity company PLN (Sofyan Basir). There was no such talk about it (the capacity being cut). Who says it was reduced? Who decided it? Can the Coordinating Minister (Rizal Ramli) change a decision made by the President?" Kalla asked at his office on Tuesday.
He was responding to a statement made by Coordinating Minister for Maritime Affairs, Rizal Ramli, who had said that the highest possible target for electricity projects during the coming five years would be between 16 thousand and 18 thousand MW.
"(Rizal Ramli) should not make such a comment. If we have made a decision, it is to maintain capacity building at that (35 thousand MW)," the Vice President said.
Even though the project was criticized by Ramli, the government is confident of achieving its target by 2019.
"Seeing the progress till date, we are optimistic. The only challenge remaining is land clearing and licensing," Energy and Mineral Resources (ESDM) Minister Sudirman Said stated last month.
Minister Said reiterated that the target was achievable, saying that state-owned electricity company PLN had signed power purchase agreements (PPA) for the realization of 10 thousand MW projects this year.
"Next year, hopefully, more agreements will be signed for 15 thousand MW," he said.
Commenting on the targeted projects, the Director General of Electricity, the Ministry of Energy and Mineral Resources, Jarman revealed that independent power producers (IPP) had planned to build 25 thousand MW, and PLN had projected to produce 10 thousand MW.
"But it was then converted into 30 thousand MW for IPPs and 5,000 MW for PLN. From the IPP alone, a minimum of 10 thousand MW is expected to be signed this year through PPA, while the rest will be set by 2016," he explained.
By signing the PPA this year it is expected that the power plant project will be completed by 2019, Jarman added.
In order to expedite the 35 thousand MW power projects, the government hopes that the number of investors taking part in the development of electricity in the country would increase.
(A014/INE)EDITED BY INE(T.A014/A/BESSR/A. Abdussalam) 08-09-2015 20:44:42 |
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