In 2020, Additional 8,823 MW of Electricity will be Produced

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 065.Pers/04/SJI/2020

Date: 9 February 2020

In 2020, Additional 8,823 MW of Electricity will be Produced

Ministry of Energy and Mineral Resources (EMR) has set a target of adding 8,823 Mega Watt (MW) of electricity this year. Such addition is the peak of the 35,000 MW acceleration program.

"This is the peak, the year 2020 is the completion peak of the 35,000 program with an additional of 8,823 MW. If nothing gets in the way, project will reach Commercial Operation Date (COD)," explained Director General of Electricity, Rida Mulyana, at the hearing with Commission VII of House of Representatives, last Wednesday (5/2).

Rida has projected the total addition of power plant capacity from the 35,000 MW program is 15,634 MW or approximately 44% of the program's target. Afterward, capacity addition will be done gradually until the end of 2029.

In 2021, power plant capacity will be added by 5,066 MW, in 2022 by 4,109 MW, and then 3,907 MW (2023), 3,592 MW (2024), 1,275 MW (2025), 200 MW (2026), 505 MW (2027), 835 MW (2028), and finally 300 MW (2029). "After 2020, additional capacity from the 35.000 MW program will gradually decrease, and we hope all projects will be complete in 2029," added Rida.

The change of the completion target goes hand in hand with a number of issues, such as land procurement, licensing, social issues, and macroeconomic growth. "The program was designed on the assumption that economic growth would be about 7%-8%. Electricity growth would be about 1.2 times. Meanwhile, our economic growth is about 5%, that's the reality. In fact, electricity growth is only 4.5%," Rida said.

Rida then informed the progress of the 35,000 MW program until the end of 2019, namely 96% of the projects or around 33,856 MW had entered into a contract. Out of the total capacity, 6,811 MW or about 19% of power plants are in operation. Rida added that only 1,563 MW or about 4% of power plants have not entered into a contract or power purchase agreement (PPA).

Infrastructure Addition

Consistent with completion of the 35,000 MW program, the government will add other electricity infrastructure, for example by adding transmission networks and developing substations (GI).

In the next five years, the government has set a target of increasing transmission networks by up to 19,069 circuit kilometer (ckm) with an investment of USD7.16 billion. For substations, the total capacity until 2024 will reach 38,607 MVA with investment estimated at approximately USD 5.54 billion.

The realized transmission in 2019 was 60,102 ckm. The length was added by 6,210 ckm from the 2018 realization of 53,892 ckm. Meanwhile, until 2019, substation capacity was 151,136 MVA or increasing by 17,507 MVA from the 2018 realization of 133,629 MVA. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

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