The Jakarta Post
State-owned electricity company PLN is gradually reducing the use of diesel-fueled power plants (PLTD) to improve efficiency.
According to PLN’s electricity procurement business plan (RUPTL) for the 2018-2027 period, the contribution of oil-fueled power plants is expected to fall to just 0.4 percent of the total electricity production by the end of 2027.
Meanwhile, coal-fired power plants (PLTU) are projected to contribute the lion’s share of 54.4 percent, followed by renewable energy (23 percent) and gas (22.2 percent).
“We will slash the basic cost of production by reducing the use of PLTD, which are replaced by plants that use other sources of energy,” said PLN corporate communication head I Made Suprateka in Jakarta on Friday, as reported by kontan.co.id.
He added that such a move was important given the volatility of global oil prices.
In the future, PLTD would only be used in border regions and remote areas that could not be served by PLN’s main electricity networks, said Made.
He said such a move would significantly reduce production costs of the company, because the distribution of oil to remote areas such as some regions in Papua was very expensive.
PLN predicts it will use around 3 million kiloliters of oil fuels this year, while in 2022, it is projected to be only 500,000 kl.
Currently, PLN cooperates with a number of PLTD providers. Among PLN’s partners are PT Sumberdaya Sewatama, PT Aggreko Energy Services Indonesia and PT Kaltimex Energy. (bbn)