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PLN to operate mine-mouth plant in S. Kalimantan

State-run electricity utility PT PLN announced on Monday that the nation’s third mine-mouth coal-fired power plant located in Asam-Asam, South Kalimantan, with 2x265 megawatts (MW) capacity, would go online in the fourth quarter of this year

Rangga D. Fadillah (The Jakarta Post)
Jakarta
Tue, February 21, 2012

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PLN to operate mine-mouth plant in S. Kalimantan

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tate-run electricity utility PT PLN announced on Monday that the nation’s third mine-mouth coal-fired power plant located in Asam-Asam, South Kalimantan, with 2x265 megawatts (MW) capacity, would go online in the fourth quarter of this year.

PLN president director Nur Pamudji revealed the total investment needed to build a coal-fired power plant was Rp 1 trillion (US$110.972 million) per 100 MW. Using that calculation, the Asam-Asam plant requires an investment of Rp 1.3 trillion.

“The construction of mine-mouth power plants aims to provide electricity to mining sites’ surrounding areas. The current need isn’t really high,” he told reporters after a discussion session held by the Bimasena Mines and Energy Society in Jakarta.

Indonesia currently has two mine-mouth power plants in Ombilin, West Sumatra, and Bukit Asam, South Sumatra, each having a capacity of 2x100 MW. The two plants have operated for around 15 and 10 years, respectively.

Indonesia, the world’s largest exporter of coal and liquefied natural gas (LNG) is pushing efforts to supply energy to a third of its 237-million population who currently have no access to electricity as infrastructure bottlenecks remain a big threat to Indonesia’s rapidly growing economy.

PLN has plans to build other mine-mouth power plants in Sumatra with a combined capacity of 7,300 MW by 2020, in an attempt to optimize coal usage to accelerate development in the producing regions.

In June, the power company will begin the tender process for three mine-mouth power plants: South Sumatra 9 (2x600 MW), South Sumatra 10 (1x600 MW) and Jambi (2x400 MW). The three plants are projected to go on-stream in 2016 with a total investment of Rp 26 trillion.

“We expect to announce the winners of the tenders by the end of the year,” Pamudji said.

The three power plants will consume 18.9 million tons of coal per year comprising 8.7 million tons at South Sumatra 9, 4.38 million tons at South Sumatra 10 and 5.84 million tons at Jambi, according to PLN’s calculations.

This year, PLN has secured 67 million tons of contracted coal supply for the company and independent power producers (IPPs), higher than the real consumption estimate of around 54 million tons.

The consumption estimate comprises 25.6 million tons of coal with a calorific value of 5,100 kilocalories per kilogram (kcal/kg), 22.3 million tons at 4,200 kcal/kg and 6.2 million tons at 6,100 kcal/kg.

“The contract must be higher than the real demand to make it more secure,” said Helmi Najamuddin, PLN division head for coal.

PLN and IPPs will only pay for coal which was consumed, he added, citing an average price of Rp 725,000 per ton pegged for 2012.

“We have allocated Rp 35 trillion to purchase coal this year,” Helmi said.

Last year, PLN and IPPs consumed 43 million tons of coal from the contracted amount of around 50 million tons.

With the completion of several new coal-fired power plants, the company’s coal consumption is predicted to hit 87.5 million tons in 2013 and 95.3 million tons in 2014.

According to the Energy and Mineral Resources Ministry, Indonesia’s potential coal reserves reached 161 billion tons in 2011, jumping from 105 billion tons in 2010, while the proven reserves hit 28 billion tons, up from 21 million tons.

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