Java-Bali Power Gets 5% Jolt With New Paiton Coal Plant

By webadmin on 09:49 pm Jun 07, 2012
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Tito Summa Siahaan & Faisal Maliki Baskoro

Paiton Energy has now completed construction of an 815-megawatt coal-fired power plant in Probolinggo, East Java, that will increase power on the islands of Java, Madura and Bali.

“Our newest plant boosts the capacity of the Java-Bali power grid by about 5 percent,” Paiton’s president director Low Kian Min said on Tuesday. “This completion marks an important milestone in Indonesia’s energy sector.”

The plant is located in a complex that contains seven coal-fired power plants, which together produce more than 4,000 megawatts of electricity. Paiton owns three of the seven plants.

The capacity of the Java-Bali power grid is about 28,000 megawatts. In April, demand for energy in the area peaked at a record 20,172 megawatts.

Paiton invested $1.5 billion in the complex, which began operating in March.

“It is the country’s largest and most advanced coal-fired power plant,” said Low Kian, adding that the complex was completed in 44 months and one month ahead of schedule.

Paiton Energy is a joint consortium between International Power, Mitsui & Co., Tokyo Electric Power Co. and Batu Hitam Perkasa.

Indonesia is a good place for electricity companies to invest, according to Low Kian, who expects the company to see an “an acceptable return” from its investment.

Energy and Mineral Resources Minister Jero Wacik said Paiton’s plant is aligned with the government’s plan to reduce oil consumption.

“The president has instructed me to make the most of other power sources and bring down oil consumption,” the minister said during a visit to the plant on Tuesday. The government, he said, plans to construct a total of 28 geothermal power plants with estimated capacity of 4,000 megawatts.