Inaugurating PLTGU Riau, Minister Of Energy And Mineral Resources Says Utilizing 34 Percent Of Domestic Components

Illustration of the Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif inaugurated the Riau Gas Steam Power Plant (PLTGU) with a capacity of 275 megawatts (MW) located in the Tenayan Industrial Estate, Pekanbaru, Riau on Thursday 12 May.

It is certain that the operation of the power plant will strengthen the reliability of electricity supply in the Sumatra system, particularly the Riau sub-system, while at the same time pushing the cost of electricity supply (BPP) cheaper and cleaner.

Arifin said that standing on an area of 9.1 hectares, the Riau PLTGU was included in the National Strategic Project.

"With an investment of around 290 million US dollars, the Domestic Component Level (TKDN) in this project reaches 34 percent and is able to create job opportunities for around 2,072 Indonesian workers and 47 foreign nationals," he said when inaugurating the Riau PLTGU, quoted Friday, May 13. .

Furthermore, Arifin also emphasized the importance of affordable energy prices for the benefit of society and industry.

It is known, the selling price of the Riau PLTGU electricity is 6.49 cents per kWh or lower than the local BPP.

"With competitive electricity prices, it will encourage investment into the country, this is important. For that, don't forget to always improve efficiency in plant operations," continued the Minister of Energy and Mineral Resources.

The electricity capacity produced by the Riau PLTGU can electrify around 360,000 household customers with a power of 900 VA.

Not only strengthening electricity supply, the construction of this PLTGU is also called more environmentally friendly because it produces smaller emissions.

As is known, the Government is focused on efforts to transition energy. This is a long strategy for all nations in the world to reduce greenhouse gas (GHG) emissions, and achieve Net Zero Emissions (NZE), in order to minimize climate change.

For this reason, gas is currently being developed and used as a bridge to 100 percent New Renewable Energy (EBT).

According to Arifin, Indonesia still has quite a lot of gas potential as well as being an important energy commodity, especially in supporting the energy transition process.

"Emissions released from fossil energy sources, including coal, exhaust emissions are twice that of gas," explained the Minister of Energy and Mineral Resources.

With the operation of the Riau PLTGU, the capacity of the Sumatran electricity system will increase to 7,266 MW with a peak load of 6,823 MW, bringing the Sumatran electricity system reserves to 443 MW.

PLTGU Riau itself was developed by PT Medco Racth Power Riau, a joint venture between PT Medco Power Indonesia and RATCH Group Public Company Limited.

"We must strive, we must be able to create new demands so that we can fulfill the national capacity as optimally as possible. So that its utilization can be maximum," concluded Arifin.