PLN Starts Work on Papua Hydro Plant

State power company Perusahaan Listrik Negara has started construction of a hydroelectric power plant in Baliem, Papua, as part of the utility’s ongoing plan to provide electricity to the country’s easternmost island.

The power plant, which will cost about Rp 4.9 trillion ($519 million), is expected to generate 50 megawatts of power when it begins operations in 2017, PLN managing director Nur Pamudji said in a statement on Wednesday.

Once the power plant starts operating, PLN says it will be able to save as much as Rp 2.4 trillion from converting the plant’s fuel from diesel to hydro power.

The construction of the power plant commenced on Wednesday with a ceremony in Baliem. Nur was in attendance, along with State Enterprises Minister Dahlan Iskan.

“We believe we can finish the construction of the power plant given the potential from the Baliem River. That way, it will reduce the amount of diesel fuel we use and save us as much as Rp 2.4 trillion,” the managing director said.

Nur added that part of the construction of the power plant would include building a road to the plant and other civil, metal, electrical and mechanical work.

PLN has been tasked by the country to provide electricity to Indonesia’s 240 million people. The country is stepping up its efforts to increase the number of households with electricity and reduce power outages. Currently, Indonesia’s electrification rate stands at 65 percent, meaning that 65 percent of households have access to power.

PLN has frequently struggled to power the nation as demand continues to outstrip supply. The Jakarta-based company has tasked with providing an additional 55,500 MW of power nationwide by 2019.

The government is planning to add another 30,000 MW of power to the national grid by 2014 through a fast-track program. It plans to generate that from coal, geothermal and hydroelectric resources.

Total investment in the two-phase program is estimated at about $26 billion.

(Investor Daily, Jakarta Globe)