PLN to reduce diesel-fueled plants

PLN to reduce diesel-fueled plants

JAKARTA: State electricity company PLN plans to gradually reduce its use of diesel fuel to run its power plants, following a decline in the country's oil production and rising energy prices.

Company president Eddy Widiono said the company expected during the next two years to eventually use diesel in only 5 percent of its power plants, with the number reduced further to only 2 percent in 2010.

"We will shift the use of energy in running our plants from diesel fuel to a cheaper and a more abundant energy resource, such as gas, coal and geothermal energy," Eddy said after meeting Vice President Jusuf Kalla on Wednesday.

Declining oil production during the past decade has prompted the government to encourage local companies to switch to natural gas and coal for their energy needs during coming years. -- JP