P

T Paiton Energy, a joint venture between French and Japanese companies, officially launched commercial operation of its Paiton Unit 3 coal-fired power plant in Probolinggo, East Java, on Tuesday.

Energy and Mineral Resources Minister Jero Wacik, who inaugurated the 815-megawatt plant, said it would make a significant contribution to meeting the increased need for electricity in Java, Madura and Bali.

“The electricity will be distributed through Java-Bali interconnection [grid],” he said at the launch, which was attended by Japanese Ambassador Yoshinori Katori and French Ambassador Bertrand Lortholary.

Low Kian Min, the president director of PT Paiton Energy, called the Paiton’s Unit 3 an “important revolution in Indonesian electricity infrastructure” for its use of supercritical-boiler technology — a first in Indonesia — which consumes coal more efficiently and produces less carbon dioxide.

Paiton Unit 3 would add about 5 percent to the grid’s current capacity and provide local industry with a more reliable power supply, he added.

Low said that the plant had been financed by equity from its shareholders and loans from a consortium of banks, including the Japan Bank for International Cooperation, the Bank of Tokyo Mitsubishi UFJ, Mizuho Corporate Bank and the Sumitomo Mitsui Banking Corporation.

The total amount of the financing was US$1.2 billion, slightly below the total investment of $1.5 billion.

Around 13,000 people were employed to build the plant, completing work in 44 months — a month ahead of schedule. Commercial operation of the Paiton 3 power plant started on March 18.

The plant will use 400 tons of sub-bituminous coal per hour, with a coal supply coming from Kalimantan on 30-year contracts from Adaro (70 percent) and Kideco (30 percent).

Paiton currently operates several other plants at its generation complex in Probolinggo, with a total
capacity of 1220 megawatts.

Paiton Energy is jointly owned by France-based International Power plc, Japan-based Mitsui & co., Ltd., the Tokyo Electric Power Company, Inc. and PT Batu Hitam Perkasa.

The firm completed another coal-fired power plant in Pasuruan in late 2011 with a total capacity of 660 MW.