State-owned electricity company PLN has announced a plan to hold a tender for a power plant construction project with a capacity of 6,000 megawatt (MW).
The project is part of the government’s 35,000 MW electricity procurement program scheduled for completion by 2019 or 2020.
The tender will be directed more toward mine-mouth power plants because they offer a faster process of power yields and cheaper costs as no logistic fees will be charged, said PLN’s procurement director Supangkat Iwan Santoso.
“[A tender] for a mine-mouth power plant with a capacity of 6,000 MW is expected to be finished this year,” Supangkat said as quoted by kontan.co.idover the weekend.
The largest existing mouth-mine plants are designed with average capacities of about 300 MW, said Supangkat.
The tender will not include power plants IX and X in Southern Sumatra, which are supposed to yield High-Voltage Direct Current power for Java, he added.
For the rest of 2017, there will be no other tender for power plants with capacities above 1,000 MW, said Supangkat.
“We hope that several 300 MW [power plants] in South Sumatra, Riau, Jambi and North Sumatra will be put up for bid by the third or fourth quarter,” he said.