PLN has opened a tender to convert 212 megawatts (MW) of diesel power plants spread across 183 locations into lower-emission power plants as part of the state-owned power company's cost-cutting and energy transition plans.

The company announced the tender of this first phase de-dieselization program on March 1 and held a pre-bid meeting on March 23. The power plants are located in the Java-Madura and Kalimantan islands.

PLN president director Darmawan Prasodjo said tender winners would be announced at the end of 2022, and the signing of power purchase agreements would take place in 2023.

“The trend of decreasing new and renewable energy prices is ongoing. De-dieselization project auctions are in progress, there are currently 160 eligible companies participating in the auction,” Darmawan said during the strategic cooperation toward carbon neutral 2060 signing ceremony on Thursday.

Previously, the electricity company planned to conduct project biddings in December 2020 and aimed to swap out 200 old diesel-powered power plants with solar power stations by 2022.

“This de-dieselization program will be a big leap in achieving the government’s target toward the net zero emission target,” said Energy and Mineral Resources Minister Arifin Tasrif of the program on the sidelines of a Group of 20 Energy Transition Working Group (ETWG) meeting on Wednesday.

PLN mega project and new and renewable energy director Wiluyo Kusdwiharto said diesel power plants in the first phase would be converted to hybrid solar-battery energy storage system (BESS) power plants and hybrid solar-BESS-diesel power plants.

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