Construction starts on Riau coal power plant

Rizal Harahap, The Jakarta Post, Pekanbaru | Sat, 05/08/2010 10:46 AM

Construction started on a 20-megawatt coal-fed steam power generating station in Peranap, Indragiri Hulu, Riau, that will illuminate the regency by mid 2012, said PT Bukit Asam managing director Sukrisno at the station’s inauguration on Thursday.

PT Bukit Asam, the state-owned coal mining firm, would build the plant near its coal mine in Semelinang Tebing village, 250 kilometers south of Pekanbaru, the capital of Riau, he added.

Construction of the PLTU Peranap power plant would cost an estimated Rp 300 billion (US$32.6 million), he added.

Exploratory studies that date from June 1985 were finally realized after the company decided to use its own money to speed up construction of the plant, said Sukrisno.

The power pant was just the first part of Bukit Asam’s plan to foster development in Riau, he added.

The company would also build additional infrastructure needed for the station, such as schools, housing for new employees and additional power lines.

Power produced by PLTU Peranap would eventually be sold to the public by PT Perusda, which is operated by the regency administration.

The coal mining firm had decided to distribute power outside the state-owned electricity company’s network to reach users in six neighboring districts, said Sukrisno.

The plant will end the power crisis in Indragiri Hulu and promote small business in Riau, he added.

Bukit Asam’s potential coal reserves of 370 million tons in Peranap had given the company an opportunity to develop its coal export business and would fuel two additional power plants that it planned to build in Riau in the near future, said Sukrisno.

The Peranap mine had previously produced 12 million tons of coal per year and would be able to fuel seven stations similar to PLTU Peranap, and produce 200 megawatts, he said.

“We plan to build additional power plants with a total combined output of 300 megawatts by 2015 and maximize use of Peranap’s coal potential.”

Bukit Asam manages coal mines in South Sumatra, West Sumatra and East Kalimantan and the coal mine and power generation station in Peranap are part of an expansion program, said Sukrisno.

The company had a concession to mine coal in a 17,000-hectare area of Peranap. Bukit Asam had already acquired 80 percent of the land, he added.

Indragiri Hulu Regent Mujtahid Thalib said he had promised to help build a network to distribute power to residents in remote areas.

Riau Deputy Governor Mambang Mit said that when completed, the power plant would minimize the Riau’s chronic power crisis.

Reports say Riau province produces 150 megawatts and faces a power deficit of 42 percent during peak hours.

Riau’s ratio of available power to demand is the lowest in Indonesia. The province will face a power deficit of 1,100 megawatts in the next five years without new power stations.