Indonesia: PLN Delays Signing 9,000-MW PPA in Java

Indonesia: PLN Delays Signing 9,000-MW PPA in Java

State power company PLN has decided to delay the signing of a power purchase
agreement (PPA) for a 9000-MW electricity project in Java, citing
oversupply.

PLN estimated a 5,000 oversupply in the island, PLN procurement director
Supangkat Iwan Santoto said.

He asserted that PLN will not be signing other contracts yet until the
remaining PPA projects with 4,000 MW capacity is signed.

"We have some 4,000 MW un-contracted projects. For the time being, the
remaining 9,000MW project will be put on hold, as Java's electricity is
predicted to have a 5,000-MW oversupply," he said on Monday, April 10.

Iwan said one of the projects to be delayed is the 2x1.000 MW PLTU Jawa 5
which was supposed to be taken by PLN subsidiary, Pembangkit Jawa Bali.

"We will not continue with Jawa 5, especially now that the power supply is
sufficient for today's economic growth," Iwan said.

PLN's electricity supply plan (RUPTL) for the period of 2017-2026 estimates
a supply increase of 39.1 GW in Java. This is much greater than Sumatra (21
GW), Kalimantan (6.9 GW), Sulawesi (8.6 GW), and Maluku-Papua (2.1 GW).

From the 35,000 MW project, Iwan said that Java and Bali initially were
allocated 21,252 MW or 59.65 percent. But after observing Java's power
demand, 13,000 MW is deemed sufficient.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
https://en.tempo.co/read/news/2017/04/11/056864704/PLN-Delays-Signing-9,000-
MW-PPA-in-Java

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com