As part of efforts to increase electricity produced from renewable energy sources, the government is planning to upgrade a solar-cell power plant in Bandung, West Java, to enlarge its capacity to 50 megawatts (MW) per year.
Coordinating Economic Minister Hatta Radjasa said Friday the government had approved the plan and was now considering the best financing scheme for the project, which is scheduled to start next year.
"There are still two options with this project. First, we could use old technology that rely on silicon use, which is cheap to buy, but expensive to run.
"The second option is to use the newest microfilm technology that is much more expensive to buy, but cheaper to maintain and easier to operate," Hatta said.
The government has so far opted for the first choice, he said, because it would only cost about Rp 50 billion (US$ 5.3 million).
"We are still waiting for the final comprehensive review from the research and technology ministry before deciding which option is best, both economically and operationally," he said.
The project will be handled by state-owned solar cell producer PT LEN Industri.
Hatta said the government was still considering whether the company itself would finance the project using internal funds or another scheme.
"We are not going to use the state budget to finance the project because it is commercially feasible and attractive for investors," he said.
LEN is currently running a solar-cell power plant with a capacity of 6 MW. The output electricity is available at $3 per watt. If the plant increases its capacity, it will not only help fulfill electricity shortages, but also reduce the overall price.
"Based on our analysis, if we increase the capacity of the plants to 50 MW, we'll be able to sell the solar cells at $1.2 per watt. The global price now stands at around $1.7 per watt," said LEN Industri managing director Wahyuddin Bagenda.
Aside from the power plant project, the company is also planning to upgrade its solar-cell modules factory, Hatta said.
LEN-made solar-cell modules still use imported components, he said. "By upgrading the factory, we will be able to not only increase production capacity, but also eliminate dependency on foreign materials," Hatta said.
By using local components, production costs will be lower, enabling the factory to produce more modules. The more modules made by the factory, Hatta said, would also enable non-electrified areas to access solar technology. (bbs)
