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Bali To Also Benefit From The New Paiton Coal And Thermal Power Plant
06/13/2012

Just recently in East Java, Indonesia's first supercritical pressure coal-fired facility, the Paiton Thermal Power Station has been inaugurated.

Also the country's largest and most efficient coal-fired power plant, the Paiton Thermal Power Station is operated by Paiton Energy, with its electricity planned to be sold to PT PLN (Persero), Indonesia's state-owned utility, for a period of 30 years under a long-term power purchase agreement.

With the completion of its construction, Paiton Energy's 815-megawatt coal-fired power plant in Probolinggo, East Java is said to increase power on the islands of Java, Madura and Bali.

Paiton's president director Low Kian Min said, "Our newest plant boosts the capacity of the Java-Bali power grid by about 5 percent."

With its completion marking an important milestone in Indonesia's energy sector, the Java- Bali power plant is located in a complex that contains seven coal-fired power plants, which together produce more than 4,000 megawatts of electricity. Three of the seven plants are owned by Paiton.

With this, the Java-Bali Power grid will get 5% jolt. The Java- Bali Paiton coal plant capacity is about 28,000 megawatts.

In April, there was a peak in the demand for energy in the area at a record 20,172 megawatts.

An investment of $1.5 billion was placed in the complex by Paiton, which began operating in March.

Low Kian said, "It is the country's largest and most advanced coal-fired power plant," 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.

According to Low Kian, Indonesia is a good place for electricity companies to invest. He expects the company to see an "an acceptable return" from its investment.

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

During a visit to the plant, the minister said, "The president has instructed me to make the most of other power sources and bring down oil consumption," adding that there is a plan by the government to construct a total of 28 geothermal power plants with estimated capacity of 4,000 megawatts.