T

he development of seven hydro power plants (PLTA), with a combined total capacity of 1,377 megawatts (MW), is expected to kick off soon despite the huge challenge the projects'€™ price tags pose.

According to a publication available on the Energy and Mineral Resources Ministry'€™s directorate general for electricity'€™s website, the seven projects are part of a government program to accelerate the development of hydro power in the country.

Four of them '€” with a combined capacity of 146.52 MW '€” are expected to be constructed in the second half of the year.

The four hydro power plants are PLTA Karangkates IV & V, PLTA Kesamben and PLTA Lodoyo. Four of the projects are located in three reservoirs in East Java.

However, the website did not offer further information on the other three projects.

The ministry'€™s director general for electricity, Jarman Sudimo, failed to respond to The Jakarta Post'€™s
inquiries regarding the matter.

Lukita Dinarsyah Tuwo, deputy head of the National Development Planning Board (Bappenas), said the government was coordinating internally to ease the permit process for the four power plant projects in East Java.

'€œWe are also looking for solutions to various hurdles, including funding,'€ he said.

Land acquisition is an issue hampering infrastructure projects across the country, as is the case for the
development of PLTA Jatigede, which has yet to be completed.

Lukita said the government had also prepared several programs, including restoring the capacity of hydro power plants by dredging reservoirs and refurbishment of plant components, to increase the use of hydro resources for power generation.

Meanwhile, the government will also assess the potential of developing hydro power plants at 239 reservoirs owned by the Public Works Ministry, some to be used by private companies to develop five hydro power plants.

The five power plants will have a total capacity of 16.94 MW.

According to figures from the ministry, the country had 47,128 MW installed capacity of all types of power plants as of the end of 2013.

Most of the electricity is produced by diesel-fueled and coal-fired power plants: Only around 8 percent of the total capacity is generated by hydro power.

With an annual electricity-demand increase of around 9 percent per year, Indonesia needs an average additional supply of 5,000 MW every year between 2010 and 2022, Jarman has said.

According to state electricity company PT Perusahaan Listrik Negara (PLN), it needed to add an average of 5.7 GW per year to meet growing demand.

According to the company'€™s 2012-2021 working plan, this year it expected additional supplies of 63 MW from geothermal power plants (PLTP); 150 MW from minihydro plants (PLTM); 652 MW from gas/mini gas power plants (PLTG/PLTMG); 90 MW from steam and gas power plants (PLTGU); 2,705 MW from coal-fired power plants (PLTU); and 145 MW from other sources. It did not expect additional supply from hydro power plants this year.

The government earlier said it needed up to $107 billion to build electricity infrastructure between 2012 and 2021.