Minister Dody Calls PLN Electricity Entrepreneurship From Dams Needs Competitive Prices

Minister of Public Works Dody Hanggodo (Photo: Theresia Agatha/VOI)

SUMEDANG - Minister of Public Works (PU) Dody Hanggodo said that the exploitation of electricity potential from the use of dams still needed an agreement between PT PLN (Persero) and business entities to create a profitable price.

Dody explained that currently PLN is the only State-Owned Enterprise (BUMN) that absorbs electricity production from all generators in Indonesia. Thus, PLN as a business entity also needs to buy electricity at a profitable price.

"Because at the end of the day, for example other business entities enter, other private companies enter, he sells them to PLN," said Dody to reporters at Jatigede Dam, Sumedang, West Java, Monday, January 20.

According to Dody, the discussion did require a fairly long discussion between the business entity that produces electricity with renewable energy, such as water from the dam and PLN which will buy the electricity production.

"That's, right, something we have to discuss. Because PLN usually buys at what price. If I said earlier, right, PLN as a business entity must also be profitable. It must be discussed a bit long. It can't be just one party. (Same) PLN is chatting together," he said.

He assessed that the dam that had been built previously had a large hydroelectric power plant (PLTA) potential. However, the cost of producing electricity from this water certainly has a price that is not as cheap as fossil energy power plants.

On the one hand, business entities must sell electricity production from renewable energy at competitive prices compared to fossil power plants.

Currently, Indonesia already has around 247 dams. That number has the potential to produce 2,395 Mega Watts (MW) of electrical energy. Consisting of the potential for Floating PLTS of 1,470 MW and 925 MW of hydropower.