APAC: Indonesia cuts power plant plans for next nine years

30 November 2017 - 12:00 am UTC

Flatlining power demand has prompted Indonesia to slash the number of power plants it will procure in coming years, an official at the country’s Ministry of Energy and Mineral Resources (MEMR) has said.

State-run utility PLN will revise down its new generation capacity forecast for 2018-2027 to around 50GW, from the 78GW it predicted in this year’s Electricity Supply Business Plan (RUPTL) for 2017-2026, Pradumya told the IBC Power and Electricity Conference in Jakarta on Wednesday (29 November).

The RUPTL is a 10-year electricity development plan updated annually which includes demand forecasts, future expansion plans and electricity production forecasts. It indicates planned power projects and their expected completion date – PLN bases its decisions to tender new plants to Independent Power Producers (IPPs) on the blueprint.  

Praduyma, who heads the MEMR electricity supply program evaluation team, added that the ministry cannot approve all of the proposals it receives from investors to build new power plants. This is because electricity demand has risen slower than expected over the last two years. Electricity consumption this year rose by around 4%, he said.

In the latest version of the plan, the government shelved plans to procure 9GW of power projects, as reported. The change was made because the government expects less capacity to be installed by 2020 than the 35GW it originally planned for. 

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