High voltage transmission systems be built for new power plants: Legislators

Legislators have called on state electricity firm PT PLN to guarantee the availability of high voltage power transmission systems for the new power plants to be built by independent power producers (IPPs) who would this year resume negotiations on power supply with the Indonesian government.

Saul de Ornay and Mohammad Yamin, who are members of the House commission for energy and mineral resources, told Suara Pembaruan daily on Tuesday new power plants built by the IPPs would be useless if power transmission systems are not ready on time.

Yamin pointed to the development of the Paiton power generation projects in East Java which together produce 3200 megawatts of electricity. He said only 2800 MW has been distributed to Grati and Surabaya only due to the absence of 500 KV distribution systems.

?I assume that if negotiations with independent power producers have been concluded, several privately owned power projects will begin to be realized. But, if they are not coupled with the development of power distribution systems, electricity will not reach customers,? Saul said.

Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti said recently negotiations between the government and 27 IPPs would be concluded by the end of 2002.

The government in the early 1990s allowed the 27 IPPs to enter Indonesia?s power generation sector under a power purchase agreement (PPA) contract with PLN which was then unable to build sufficient generating units to meet the rising demand for power.

But the government suspended and reviewed most of the power projects during the financial crisis which hit Indonesia in mid-1997.

The government said in early February it planned to revoke the decree which suspended the power projects. (*)