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One step forward, PLN agrees to purchase power produced from Jakarta’s waste
State-owned electricity firm PLN signed an agreement with PT Jakarta Solusi Lestari (JSL) on Wednesday to purchase electricity produced from everyday waste at the city’s first intermediate treatment facility (ITF), which will be built in Sunter, North Jakarta
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span>State-owned electricity firm PLN signed an agreement with PT Jakarta Solusi Lestari (JSL) on Wednesday to purchase electricity produced from everyday waste at the city’s first intermediate treatment facility (ITF), which will be built in Sunter, North Jakarta.
JSL is a subsidiary of city-owned developer PT Jakarta Propertindo (Jakpro) and has been tasked with building the waste-to-energy power plant (PLTSa).
“The price was set taking into consideration various components, such as the amount of power produced and the standard power price,” PLN acting president director Sripeni Inten Cahyani said.
According to the power purchase agreement, as stated in a release made available to The Jakarta Post, 1 kilowatt hour of power will cost Rp 1,671 (11.88 US cents).
As the facility will produce electricity by incinerating waste, PLN will be in charge only of distribution to users. Using 2,200 tons of garbage per day, the facility is expected to produce 35 megawatts per day.
The ITF will be connected to PLN’s substation in Kemayoran, Central Jakarta, through a 150 kilovolt transmission line stretching 2.2 kilometers.
After the signing ceremony, Jakpro president director Dwi Wahyu Daryoto expressed his appreciation for everyone involved in the matter.
“We are thankful for the support of PT PLN and the Energy and Mineral Resources Ministry in our effort to develop the ITF Sunter,” he said.
JSL, which was established earlier this year, is a joint-venture company between Jakpro and Finnish energy company Fortum. The forming of the company was based on Gubernatorial Decree No. 33/2018 on Jakpro conducting waste management through the ITF.
Under the build-operate-transfer (BOT) scheme, the firm will build and operate the PLTSa for 25 years, after which it must hand it over to the city administration.
The Jakarta administration held a groundbreaking ceremony for the ITF Sunter in December last year. However, as of October, its construction has yet to begin.
JSL president director Faisal Muzakki said the company had to complete administrative requirements before the facility could be built.
“We’re talking about process; there are permits that we should completed one by one. We hope construction can start once negotiations with all related parties are finished and the funding is certain,” he said.
In late September, JSL revealed that it was waiting for the environmental and social impact assessment (ESIA) to be reviewed by the International Finance Corporation of the World Bank Group.
The review is expected to be completed by the end of this year. That will be when the company proceeds with obtaining a building permit (IMB) from the city administration — this alone will take about six months to process.
The ESIA is among key factors that has to be obtained for certain projects to be eligible for funding from international benefactors. It is similar to the environmental impact analysis (Amdal), but is more detailed and is internationally recognized.
During the signing ceremony, Jakarta Governor Anies Baswedan said the city should have at least four PLTSas in order to significantly reduce the amount of garbage dumped at the city’s only landfill, Bantar Gebang in Bekasi, West Java.
The city produces around 7,500 tons of waste every day, most of which is dumped at the landfill. The PLTSa is considered urgent as Bantar Gebang is expected to reach its maximum capacity by 2021.
“I hope Jakarta will have more PLTSas, at least three more. There’s an urgent need to make sure that the city is developed as a sustainable city. One of our big issues is environmental problems; we should tackle this together,” the governor said.
The ITF facility will be across from the Jakarta International Stadium, which is currently under construction. Hence, Anies said he hoped the PLTSa could serve as an educational facility from which people could learn about waste treatment.
“The ITF is located near the [Jakarta International] stadium, it’s also next to Ancol Beach. There will be a train crossing the area. Within 10 or 20 years, the place can also be where people learn [about waste treatment],” Anies said.
Through the issuance of Presidential Regulation No. 35/2018, the government plans to develop PLTSas in 12 cities. Cities in Java include Tangerang and South Tangerang in Banten, Bekasi and Bandung in West Java, Semarang and Surakarta in Central Java, Surabaya in East Java.
Cities outside of Java include Denpasar in Bali, Palembang in South Sumatra, Makassar in South Sulawesi and Manado in North Sulawesi.
