Rolls Royce Turbines Help Indonesia's 2005 Target to Beat Power Shortfall

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). The two RB211 Rolls Royce 60 MW gas turbines installed by the Indonesian state electric utility PLN at Samarinda power station, in 1998, on the east coast of Borneo, freed the region from total dependence on diesel generating sets. This month, the company won a repeat order for gas power generation equipment to meet the growing demand for efficient and reliable power for the region's expanding industry and commerce, which is fed through PLN's grid.

P.T. Menamas (PTM) led an independent power production consortium that awarded the contract for a second 23 MW RB211-6562 dual fuel generating set. PTM ordered the first generator set in 2002 and this is in the final stages of installation. The company has a long-term contract to sell the electricity generated from the new East Kalimantan plant to PLN.

The importance of large dual fuel turbine generated power for Indonesia's development is highlighted by the fact that last year the government stated that the country would suffer from a power crisis starting in 2005, if no additional power capacity was installed. In 2002, the total power supply in Indonesia was 18,608 MW and demand in 2005 is estimated at 23,000 MW, giving a shortfall of just under 4,000 MW. To meet the looming power crisis the government has reactivated 27 power generation projects, including eleven geothermal power projects, which were suspended in 1997 and 1998 as a result of the '97 economic crisis.

The geothermal power potential is estimated at 19,800 MW, including 2,324 proven, 5,691 MW possible or probable and another 10,500 MW hypothetical or speculative. Although the government and the geothermal power developers have a common aim to tap the potential, progress has been confused and slowed by the fact that the private geothermal projects are based on a JOINT Operation Contract (JOC) with Pertamina, the state energy resource company and an Energy Sales Contract (ESC) with PLN, which contain terms no longer favorable to Pertamina and PLN. Key matters being resolved are the energy price and the tax rate.

In view of the power shortage PLN has set up a program through to 2005 to install low capacity (1.0 to 2.5 MW) diesel power generation plants in isolated areas in the outer islands. These plants will have a total capacity of 462.5 MW scattered in locations in Sumatra, Kalimantan, Sulawesi, Nusa Tenggara Barat and Timur, Malaku and Irian Jaya (Papua).

PLN plans to accommodate the diesel power generating sets and support facilities in containers, as this will provide business opportunities for suppliers and operators. 91.0 MW of the total has had an investment of $70 million sourced from Danish, Belgian, German and Japanese bodies and the International Development Bank. Further finance from the World Bank and Asian Development Bank is expected to parallel these investments and proposals are still being invited on the balance of the total planned diesel generated power projects.