S

tate electricity utility PT PLN aims to install solar panels for 340,000 new customers in eastern Indonesia this year with a total investment of around Rp 1.2 trillion (US$138.76 million), a senior
official said.

PLN operational director for eastern Indonesia Vickner Sinaga said Friday that using solar panels was the best solution for providing electricity for people living in under-developed areas in the eastern regions of the country.

“By using solar panels, customers only need to pay Rp 35,000 per month to PLN. The price is much cheaper compared to Rp 90,000 each family has to spent per month to buy kerosene for Petromax lamps,” he told reporters at a media briefing at his office in Jakarta.

Currently, there were 1,234 customers in eastern Indonesia already using small solar panels at their houses, Vickner said, adding that new customers should not worry about funds to buy the solar panels because PLN would provide them free of charge.

“The price for solar panels is Rp 3.5 million (US$400), comprising the panel [installed on the rooftop of house], pipes, cables [to connect the panel and lamps] and three lamps. PLN will provide customers with the packages,” he explained, adding that the panels could be used for lighting only.

The planned 340,000 solar panel customers would consist of 120,000 customers in West Nusa Tenggara, 120,000 customers in East Nusa Tenggara and 100,000 customers from the remainder of eastern Indonesia, including Central Kalimantan to Papua.

PLN president director Dahlan Iskan affirmed the company’s commitment to developing the utilization of alternative and renewable energy, including solar energy, to provide electricity in remote areas.

The company has announced that this year it will set up communal solar power plants on 100 small islands across the country and on 1,000 additional islands the following year. The power plants will then channel electricity to households in nearby areas.

Dahlan said PLN had conducted successful tests on five islands: Bunaken in North Sulawesi, Wakatobi in Southeast Sulawesi, Banda in Maluku, Raja Ampat in Papua and Derawan in East Kalimantan. He emphasized that 100 percent of the electricity on those islands came from solar power.

Vickner reported that for the 100 islands program the company needed to invest around Rp 9 billion to construct solar power plants on each island, requiring a total investment of Rp 900 billion.

“All funds will come from PLN’s internal budget,” he said.

According to PLN data, the present electrification ratio in eastern Indonesia is only 56 percent. Several provinces have electrification ratios of only around 30 percent. PLN aims to gather 1.1 million new customers in the area in 2011.

In addition to solar power plants, Vickner also said that there would be several geothermal power plants that would begin operating in eastern Indonesia this year, including in Lahendong in North Sulawesi and Ulumbu in East Nusa Tenggara, with a total capacity of 25 megawatts.

To improve the efficiency of the company’s operational costs, PLN has also cooperated to build eight mini liquefied natural gas (LNG) receiving terminals in eastern Indonesia. The terminals are expected to begin operations between 2012 and 2015.