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Alstom eyes transmission projects in RI

Transmitting power: A woman works at the Alstom Grid in Stafford,United Kingdom

Kornelius Purba (The Jakarta Post)
Stafford, United Kingdom
Sat, August 24, 2013

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Alstom eyes transmission projects in RI Transmitting power: A woman works at the Alstom Grid in Stafford,United Kingdom. (JP/Kornelius Purba) (JP/Kornelius Purba)

Transmitting power: A woman works at the Alstom Grid in Stafford,United Kingdom. (JP/Kornelius Purba)

Alstom, the French-based power generation, power transmission and rail infrastructure giant, recently invited journalists from several parts of the globe including The Jakarta Post'€™s Kornelius Purba to visit Alstom Grid, to see its center for high-voltage direct current connections.

Grégoire Poux-Guillaume, president of Alstom Grid Sector was obviously prepared for questions about a bribery scandal that involves the company in Indonesia. The Corruption Eradication Commission (KPK) has detained Indonesian Democratic Party of Struggle (PDI-P) politician Izedrik Emir Moeis for allegedly receiving US$300,000 from Alstom to win the contract to construct a coal-fired power plant in Tarahan, Lampung, in 2004. Alstom and Japan'€™s Marubeni won the $118 million power plant project.

'€œAlstom is fully cooperative with Indonesia in resolving the case,'€ said Guillaume, who worked for a French oil company in Kalimantan in the 1990s. He added that so far his company had not uncovered any wrongdoings committed by its employees although some of its executives are facing legal charges in the case.

He then enthusiastically talked about the Sumatra-Java high voltage direct current (HVDC) Inter Connection Transmission Line Project. State electricity firm PT PLN is now processing its bids to determine the winners of the mega project '€” Alstom is one of the bidders '€” and the final decision is expected to be announced later this year.

The project will cost about $2 billion, including 37 billion yen ($374 million) from the Japan International Cooperation Agency (JICA). Funding problems have forced a delay. The government however hopes it will be completed in 2017. Land appropriations are among the obstacles.

The 700-kilometer long project will start with a converter station at a 3,000 MW power plant in Muara Enim in South Sumatra and will end at an inverter station in Bogor, West Java. A submarine transmission cable will also be laid in the Sunda Strait.

'€œWith our advanced technology, we believe we are very capable of carrying out the project,'€ said Guillaume.

The project comprises five tasks, including a 500-kV DC air transmission channel from Muara Enim to Bogor and a 500 kV AC air transmission channel for the two destinations. Alstom was reluctant to specify which part of the project it wanted to win saying it should wait until PLN announced its final decision.

'€œTo be frank with you it is a big project for us,'€ said the French national.

Meanwhile PLN expects the project to start soon. '€œWith this project we will be able to channel electricity from several power stations in South Sumatra to Java or from Java to Sumatra to meet power demand in Sumatra, Java and Bali,'€ PLN announced recently.

So far there is still no power line between Java and Sumatra. In Sumatra, coal-fired power plants are more feasible and cheaper because coal is abundant, while in Java there is still huge demand for power as the government'€™s ambition to build power plants of up to 10,000 MW is still far from fruition. Even within Java, demand for HVDC inter connection transmission, to connect power plants that will be built on the island, is still high.

ASEAN has pledged to accelerate power interconnection among its member countries. Thailand and Malaysia have been connected to enable them to share power. Sumatra (in Peranap, Riau province) and Malaysia will also have such a connection, using undersea cables. West Kalimantan and Sarawan in Malaysia are also expected to begin similar cooperation next year.

The interconnection of inter-state networks is known as the '€œsupergrid'€. It has become common practice among European countries, and ASEAN will follow that path.

For Alstom and other multinational companies, such turn-key projects are too lucrative to be ignored, and they need to be proactive from the very beginning to monitor the development.

According to Alstom executives, HVDC technology is one of the most efficient ways to move bulk power between power generation plants and the power consumer areas over distances of more than 700 kilometers. It improves the quality, stability and reliability of power. HVDC solutions also prevent cascading disruptions.

The technology has two types: Line commutated converters (LCC) and voltage source converters (VSC). The first type is for interconnections up to 500kV and long distance transmission up to 800 kV, while the second is for connections of renewable energy and direct current (DC) grids.

'€œHVDC solutions prevent cascading disturbances, even in connected AC [alternating current] networks,'€ said Patrick Plas, adding that most of the world'€™s power was produced as alternating power.

Alstom insisted that '€œwith HVDC depending on voltage levels, Alstom can transmit up to three times more power over long distances than traditional AC transmission with much less ecological damage.'€

Power shortages have become acute in Indonesia over the last few decades. The government initially hoped for great things from China with its offer to build turn-key power projects in Indonesia at very competitive prices. However, little came of this.

Should PLN decide to enlist Alstom in the mega project, its technology will enable Sumatra and Java to achieve a more sustainable and secure power supply. Whatever the case, Emir'€™s scandal should not be repeated.

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