Indonesia releases its 35 GW power capacity addition plan
President of Indonesia has launched a program designed to provide an additional 35 GW of power capacity by 2019 to cope with electricity shortages, which hit large amount of the population, and to reduced the country's dependence on fossil fuels. Electricity demand growth in 2015-2019 is predicted to reach 8.7%/year, on average.
The program is supported by tailor-made regulations and includes the development of around 210 power plant projects across the country: 10 GW of project will be directly managed by the State-owned power company PT PLN (35 projects), while private companies are invited to participate in 25 GW of projects (74 projects). 59 projects will take place in Sumatra state, 34 in Java, 49 in Sulawesi, 34 in Kalimantan and 34 in eastern Indonesia.
Out of the 35 GW planned, coal-fired power plants will represent 20 GW, gas-fired project 13 GW and renewable energy sources 3.7 GW, split in 2.4 GW of hydropower, 1.2 GW of geothermal energy and 120 MW of wind electricity capacity. The Government plans that the construction of the 20 GW of coal-fired power capacity should increase the need of 80-90 Mt/year of coal, of which 40% are expected to be supplied internally. The projects are estimated to cost about IRup1,120bn (US$88bn).