Geothermal plant to boost electric supply on Bali

Geothermal plant to boost electric supply on Bali

Wahyoe Boediwardhana, The Jakarta Post, Denpasar, Bali

In the last few years, Bali has been struggling to increase its
electricity supply to support its rapid growth, particularly in
the tourism industry, garment and other industrial sectors as
well as demands for domestic needs.

The need for electricity has been rapidly increasing for the
past ten years along with the growth of industry and the growth
of the island's population, which is over 3.3 million citizens.

It is unfortunate that Bali still depends on Java for much of
its electricity, which ranges between 350 Megawatts (MW) and 400
MW during peak hours.

At present, Bali "imports" around 200 MW, or 40 percent of the
total supply, from Paiton Power Plant in East Java, which is
distributed by an undersea cable in the Bali Strait, according to
A.A. Mustika, spokesman of PT PLN.

The rest comes from "domestic" power stations at; PLTD
Pesanggaran (75.82MW), PLTG Pesanggaran (125.5MW) and PLTG
Gilimanuk (133.8 MW).

"Bali is very vulnerable because of its dependency upon power
from another island. It has less than 20 percent reserve from its
maximum usage. Ideally, the electricity reserve should be more
than 20 percent," he said.

PT PLN has been engaged in numerous efforts to increase the
capacity of its power plants in Bali and also to invite private
sector investors to develop new power plants on the island.

In l995, for instance, the government had agreed to a develop
Geothermal Power Plant near the famous Bedugul resort in Tabanan
regency, around 24 kilometers north of Denpasar.

Due to the 1997-1998 economic crisis, a large number of
strategic projects, including Bedugul power plant, had to be
indefinitely postponed.

During the inauguration of a number of Independent Power
Producer projects in Jepara, Central Java in July 2003, the
government renegotiated the planned construction of several
renewable electricity power plants, which also included Bedugul.

Previously, the government issued a new law on energy giving
the authority to the provincial administration to manage its own
energy as well as to develop alternative energy resources.

Based on the new law, the Bali provincial administration
decided to resume the development of the Bedugul power plant.
The Bali government has appointed Bali Energy Ltd., in
cooperation with PT Pertamina to develop the project.

IB Ngurah Wijaya, president director of Bali Energy, is very
optimistic about the project's prospects. He said with a US$46.7
investment, Bedugul will be able to provide an estimated 10 MW
when the project is completed by April 2006.

"Currently, we are working on drilling three wells in the
location to explore the capacity of each well to produce
electricity," explained Ngurah during a seminar here recently.

Meanwhile, Sukusen Soemarinda, general manager of geothermal
projects at Pertamina, added that by June 2010, Bedugul power
plant could be able to supply around 175 MW to PLN.

The supply will be divided into four stages depending of the
exploration results. The first stage will be 10 MW, the second
stage will comprise of 55 MW (in 2008) and the rest will be
implemented in the third stage (2009) and the fourth stage,
explained Soemarinda.

It is estimated that Bedugul power plant has geothermal
potential capable of producing a maximum of some 350 MW to 400
MW, almost 100 percent of the island's current maximum demand.

Mastika admitted that the development of Bedugul power plant
would certainly help PT PLN in providing for the island. Bali has
great geothermal potential, which can be processed into abundant
electric energy, Mastika said.

"At present, PT PLN doesn't have enough money to develop new
power plants. With Bedugul's development (by private investors),
we can use our money for other needs," he explained.

Furthermore, he said, geothermal energy is environmentally
friendly. Compared to other electricity power plants which use
other systems, geothermal plants will cause minimum impacts on
its surroundings, he said.

In regard to environmental impact, I Made Suarnata, director
of Wisnu Environmental Foundation, strongly urged those involved
in the development of the Bedugul power plant to be transparent.

"They have to clearly inform the people on the possible
environmental impacts, which may appear during the construction
and operation of that power plant," Suarnata said.

The people, especially those living adjacent to the project,
he said, must clearly understand both the benefits and the
disadvantages of having such a power plant.

Unfortunately, the foundation has yet to collect additional
data and information regarding the construction of the geothermal
power plant.

"However small, the development of such a huge project will
cause environmental damage to the area," Suarnata said.

Bedugul resort is a cool area, home to three pristine lakes,
Bedugul, Beratan and Bunyan lakes. Bedugul is located between
Tabanan and Buleleng regencies.

Suarnatha added that he feared that the water level of Beratan
Lake could be reduced significantly, and that would have a wider
impact, because the water from the lake is one of the important
water sources for the entire Subak traditional irrigation system.

Atik Suardy, a geologist from Bali Energy, admitted that for
its initial exploration, the project would need water from other
sources. "But, when it is already operating, they will use ground
water from the wells."

According to IB Cakra Sudarsana, head of Bali's Public Works
Agency, the negotiating price set by Bali Energy and PT Pertamina
would be US$5.5 cent per Kwh.

"This will be significant for consumers," he said.

Soemarinda explained that the price of electric energy from
Bedugul power plant would be 7 percent cheaper than the current
price set by PLN. It is hoped that consumers will benefit from
this new price.

Currently, PLN charges Rp 620 per Kwh. PLN is now providing
electricity to 600,000 customers across Bali. He said PLN pays Rp
637 from Paiton power plant. This means, PLN still provides a
subsidy of Rp 17 per Kwh.

When Bedugul power plant is completed, PLN will likely pay
less money for energy. Yet, it does not necessarily mean that the
price for consumers could be reduced immediately, Mastika said.

"We may use the margin price for various maintenance projects
in order to improve our services for the customers," he
explained.