Indonesia: PLN's 2017-2026 Electricity Supply Business Plan Issued

Indonesia: PLN's 2017-2026 Electricity Supply Business Plan Issued

The Minister of Energy and Mineral Resources has approved the 2017-2026
Electricity Supply Business Plan (RUPTL) of the national power utility, PT
PLN (Persero). A copy of the RUTPL can be downloaded from the website of the
Directorate General of Electricity here.

Why is the RUPTL important to IPP developers?

The RUPTL in essence represents PLN's plan to procure electricity from
private Independent Power Producers (IPPs). Over the last decade, the RUPTL
has evolved from a loose guideline as to which locations PLN may wish to see
IPPs developed in, to a rulebook essentially requiring PLN to contract with
IPPs whose projects appear on the RUPTL.

Further, in order for IPP projects to gain the benefits of the government
guarantee program introduced under Presidential Regulation 4/2016 on
Acceleration of Power Infrastructure Development, the relevant project must
be listed on the RUPTL.

What are the key themes in the new RUPTL?

Some of the key element of the new RUPTL are:

For areas rich in coal and natural gas resources, PLN is prioritizing the
development of mine mouth and wellhead power projects respectively

PLN intends to satisfy peak demand from gas fired power plants (LNG, mini
LNG and CNG) as well as hydro peaking plants (including pumped storage)

Mobile power plants (MPP) are to be deployed to deal with short-term
shortages of power in various locations, particularly Sulawesi and eastern
Indonesia

For the Java-Bali system, PLN will implement 1,000MW class ultra super
critical (USC) coal fired technologies, and will promote gas fired power
plants as mid and peak load solutions

For the Sumatera, PLN intends to gradually implement 600MW class USC coal
fired plants, depending on the readiness of the grid system

The previous Sumsel 9 (1200MW) and Sumsel 10 (600MW) mine mouth power
projects have been removed from the RUPTL

A number of the coal fired power projects in Sumatera (e.g. Jambi) and
Kalimantan (e.g Kaltim 3, Kaltim 6, Kalselteng 3) have been converted from
"pass-through" coal fired IPPs (where the price of coal was a pass-through
to PLN) to mine mouth IPPs (where the IPP is responsible for securing long
term coal supply under mine mouth supply contracts); and

The total allocated renewable energy IPP capacity over the next 10 years
totals approx. 12GW, largely comprised of 4.4GW of geothermal, 4.6GW of
hydro and 1.65GW of mini hydro

The issuance of the new RUPTL now empowers PLN to continue to push out its
bid documents for the development of new projects, and accordingly we are
hopeful of seeing a great deal of activity around new greenfield IPPs over
the coming few months.

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

Link to Original Article:
http://www.lexology.com/library/detail.aspx?g=f4c79eb6-c52a-4f33-ba4f-24d885
0d8b68&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+Gen
eral+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexolog
y+Daily+Newsfeed+2017-04-11&utm_term=

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

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com