PLN to shut down several plants

PLN to shut down several plants

Leony Aurora, The Jakarta Post, Jakarta

State power firm PT Perusahaan Listrik Negara plans to shut down
several of their major power plants in Java and lower supply by
some 4,000 megawatts (MW) for the five days surrounding the Idul
Fitri holidays, in accordance with declining demand during that
period.

Three 600 MW coal-fired Suralaya plants in West Java, one PLN
Paiton plant and another Paiton Energy Company plant, both in
East Java, will be shut down between Nov. 2 and Nov. 6, general
manager of the Java-Bali grid's center for power distribution
Muljo Adji said.

Several Muara Karang plants in Jakarta may also be shut down,
depending on demand, he said on Thursday.

"Power demand in the Java-Bali grid will decline by 4,000 MW
as industries stop operating and their employees go on Lebaran
holidays," said Muljo, referring to the Islamic holidays that
will fall on Nov. 3 and Nov. 4 this year.

The grid's power demand during peak hours of 5 p.m. to 10
p.m., normally at around 14,500 MW, is expected decline to 10,250
MW during the holidays.

Government offices, which are usually the benchmark for most
private offices such as banks, will close from Nov. 2 through to
Nov. 8.

"Nevertheless, the power plants will be ready to be fired-up
if there is lack of supply," said Muljo. "We will keep the supply
secure."

The usable capacity in the Java-Bali grid hovers at around
15,500 MW from the installed capacity of 19,615 MW.

Muljo said that previous estimates of possible power shortages
this month, as demand increased in the dry season, while the
capacity of hydropower plants declined, proved to be wrong.

"The disincentives that pushed industries to move their usage
to off-peak hours helped lower demand," said Muljo.

Three power plants, with a combined capacity of 2,600 MW, in
Java are expected to start operating next year to secure supply.

Since September, PLN has raised the multiplying quotient from
1.4 to 2 for electricity used by industries in peak hours,
meaning that power will be twice as expensive as that utilized at
other times.

The state firm also applies penalty for industries using more
than half their average usage during peak hours.

The new policy managed to push down peak-hours demand on the
Java-Bali grid by 200 MW, Muljo said.

"When fuel prices were raised on Oct. 1, the demand surged by
another 300 MW, but it has since gone down".

"It's unclear whether this was because of the disincentives or
because industry simply cut production as Lebaran draws near,"
Muljo added.