Pursuing 23 Percent Renewable Energy Mix Target By 2025, PLN Absorbs Electrical Products From Aceh's Micro-hydro Power Plant

Power Purchase Agreement (PPA) between PLN and PT Hidro Jaya Konstruksi. (Photo: Doc. PLN)

JAKARTA - PT PLN (Persero) is ready to absorb electricity production from the Pantan Weather Micro-hydro Power Plant (PLTM) with a capacity of 4.5 megawatts (MW) which will be built in Gayo Lues Regency, Nanggroe Aceh Darussalam. With the operation of this PLTM, PLN has the potential to suppress BPP Aceh.

PLN buys electricity from this PLTM at a competitive price of Rp. 940 per kilowatthour (kWh) or 6.57 US cents/kWh.

This was marked by the signing of a Power Purchase Agreement (PPA) between PLN and PT Hidro Jaya Konstruksi as a private electricity producer (Independent Power Producer/IPP). The company is a Special Purpose Company consortium between PT Hidro Jaya Perkasa and a South Korean company, Dohwa Engineering Co. Ltd.

This PLTM is located in Gayo Lues Regency which is electrically an isolated area whose electricity supply has been supported by generators so far. This area has the potential for natural resources and tourism and is known as a producer of Gayo Aceh coffee.

Director of Mega Projects and New Renewable Energy, Wiluyo Kusdwiharto, explained that the operation of the Pantan Weather PLTM will be able to increase the energy mix in Aceh. The project with an investment value of IDR 160 billion is planned to start fully operating in 2024.

"PLN fully supports the operation of the Pantanweather PLTM. Of course, the production of the Pantan Weather PLTM in 2024 is one of the supporters of achieving the target of the NRE mix of 23 percent by 2025," said Wiluyo in his statement, quoted on Saturday 19 February

Currently the local isolated subsystem BPP is priced at IDR 1,800 per kWh, so that the purchase of electricity from this PLTM provides a potential savings of IDR 22 billion per year.

"Later on, this PLTM will be connected to the 20 kV network of Rikit Gaib's feeder in the isolated Blangkejeren system," said Wiluyo.

GM PLN UIW Aceh, Abdul Mukhlis revealed, this PLTM replaces PLN's dependence on diesel. So far, PLN has to operate and rent generators.

"Therefore, the operation of this PLTM is able to reduce the use of generators so that it can save money," said Abdul.

It should be noted that this development is also PLN's effort to implement Environmental, Social and Corporate Governance (ESG).

President Director of PT Hidro Jaya Konstruksi, Baek Seunghwan, is committed to completing this plant on time. This PLTM is also a form of Korean support so that Indonesia can achieve clean energy.

"This is a good cooperation between Indonesia and Korea. The hope is that with this PLTM, we can reduce carbon emissions and protect the environment in Indonesia," said Seunghwan.