State utility company PT PLN expects to cut energy cost by a hefty Rp 26.6 trillion (US$2.9 billion) next year due to lower oil-based fuel consumption, according to president director Fahmi Mochtar
"PLN aims to reduce oil-based fuel consumption while in turn increasing the consumption of non-oil-based fuels, which are *mainly* gas and coal," Fahmi said in a hearing with the House of Representatives Commission VII overseeing energy and mining on Monday
"As the operation of some power plants under the 10,000 megawatt program will begin next year, oil-based fuel consumption is expected to decrease to 6.9 million kiloliters in 2010. This will cut our energy costs by Rp 26.6 trillion next year."
He was referring to the first 10,000 MW electricity program under which more than 30 coal-fired power plants are almost completed.
Fahmi added that pro-rata electricity production costs from oil-based fuel power plants were significantly higher than for coal and gas -fueled power plants.
PLN's data from the first semester of 2009 showed that average production costs were Rp 1,352 per kilo watt hour (kWh) in power plants fueled by high speed diesel (HSD) and Rp 891 per kWh in power plants fueled by marine fuel oil (MFO).
But production costs were only Rp 339 per kWh in gas-fired power plants and Rp 336 per kWh at coal-fired power plants.
Fahmi said oil-based fuel consumption had begun to drop significantly since this year. PLN estimates that oil-based fuel consumption this year will be 8.8 million kiloliters, a significant drop from the 11.3 million kiloliters in 2008.
"This will enable us to save Rp 13.4 trillion this year," he said.
While reducing dependence upon oil-based fuel, PLN is requiring more gas and coal for its power plants. The company consumed 21 million tons of coal in 2008.
This figure is expected to increase to 22.8 million tons in 2009 and 29.6 million tons in 2010.
As for gas, PLN consumed 181,667 Billion British Thermal Units of gas (BBTU) in 2008.
This is expected to increase to 275,353 BBTU in 2009 and 320,631 BBTU in 2010, reflecting wider use of gas-fired power stations.
"The coal and gas supply for these needs have been secured," PLN's head of primary energy division Nasri Sebayang said.
