The World Bank has approved a US$325m loan to the Government of Indonesia for the Second Power Transmission Development Project. This project is designed to support efforts to electrify over 90% of all households in Indonesia by strengthening and expanding the capacity of the power transmission networks in a sustainable way. It is expected to benefit more than 29.5 million Indonesians in the four project areas – Java-Bali islands, Sumatra, Kalimantan and Sulawesi – by increasing access to the national electricity grid.
The project will involve extending and rehabilitating a number of existing 150/20 kV substations and 70/20 kV substations, while also building new 150/20 kV substations. A parallel technical assistance program for capacity building will be financed by a US$2m grant from the Government of Australia.
The project will be implemented by PT PLN, which generates, transmits and distributes most of the electricity in Indonesia. Historically, PLN has focused their electrification efforts on Java-Bali, while progress in other areas has been uneven. For example, PLN’s cost of service in the more densely populated areas of Sumatra, Kalimantan and Sulawesi is 20-30% higher than in Java-Bali, and can be up to 200% high in smaller islands like Nusa Tenggara, Maluku and Papua.
Searching for proven generation costs?
Then CAPEX & LCOE is the database you need. The module provides exclusive insights on both Capital Expenditure and Levelised Cost of Electricity.
Make informed decisions in terms of which technologies to invest in and where. In just a few clicks, access unique, premium data on both thermal and renewable power generation costs by technology and by country. Put our detailed, reliable information to use and benchmark your project.