PLN Will Supply 3,168 MVA Electricity To 6 Smelters In Sulawesi

Signing of MoU by 6 Sulmapana Regional Summit Customers with a total power of 3,168 MVA' at PLN Headquarters, Jakarta, (PLN Doc)

JAKARTA - PT PLN (Persero) will supply 3,168 Mega Volt Ampere (MVA) electricity for 6 mining refining companies or smelters on Sulawesi Island.

This step is to support the government's efforts to increase added value for domestic mining products through mineral downstreaming.

The six companies include PT Sarana Mineralindo Perkasa at 90 MVA, PT Gorontalo Mineral at 100 MVA, PT Kawasan Industri Mongondow at 1,000 MVA, Huayou International Mining (Hongkong) Ltd at 1,743 MVA, PT Indo Nickel Industry at 85 MVA, and PT Antam (Persero) UBPN Sultra of 150 MVA.

Regional Business Director for Sulawesi, Maluku, Papua & Nusa Tenggara (Sulmapana) PLN Adi Priyanto said the smelter is one of the strategic projects to support mineral downstreaming in Indonesia.

Therefore, PLN is committed to meeting electricity needs and providing the best service for the smelter industry.

"The smelter industry requires a large amount of electrical energy and PLN is ready to fulfill it with reliable, quality, and competitively priced electricity supply," he said in an official statement, Saturday, June 4.

According to Adi, the post-COVID-19 economic recovery has shown an increase in electricity demand in the country.

PLN as a State-Owned Enterprise (BUMN) which is engaged in the business of providing electricity is committed to ensuring electricity supply to all corners of the country, encouraging the rate of economic growth, and creating a multiplier effect through the readiness of electricity supply for industry and business.

"This form of commitment will later be stated in the Electricity Sale and Purchase Agreement as one of the clauses on the timeliness of service. That way, smelter owners can focus on the company's core business, while we will complete electricity needs according to a mutually agreed schedule," said Adi.

He also explained that currently, the power supply to the electricity system in Sulawesi is a surplus of 616.04 Mega Watt (MW), with a generating capacity of 3,208.75 MW (data as of May 31, 2022).

Based on the General Plan for the Provision of Electricity (RUPTL) 2021-2030, in the next 10 years a new power plant of 7,381 MW will be built, complete with transmission and substations.

In addition, PLN is also ready to complement the needs of the industrial sector, especially the smelter industry, by providing innovative and environmentally friendly products and services such as a renewable energy certificate (REC).

Moreover, currently, the largest contributor to electricity capacity in the Sulawesi system is hydroelectric power (PLTA) with a capacity of 515 MW.

"With these conditions, we are ready to serve the electricity needs of investors who want to invest in the Sulmapana Region," he said.

Currently, in the Sulmapana region, there are already 4 smelter plants utilizing electricity from PLN with a total power of 260 MVA. While in other regions, Java-Madura-Bali (Jamali) has operated 11 smelters with the support of PLN electricity for a total power of 153.59 MVA.

Meanwhile, for smelter customers who have signed a Power Purchase Agreement (SPJBTL) with PLN and are currently in the construction process in Jamali, there are 3 companies for a total power of 215 MVA. In addition, in Sumatra-Kalimantan, there are already 30 MVA smelter customers that will operate in the near future.

On the other hand, the President Director of Huayou International Mining, Fang Qixue, said that this collaboration is in accordance with Huayou's vision which is committed to running a sustainable business for the future of future generations.

"Therefore, today we signed an MoU with PLN to provide clean electricity of 1,743 MVA for the Huayou project in Sulawesi. We also want to invite PLN and 5 other companies to be able to present a green and bright future for the future of our earth," he said.