PLN Supply 9.3 MW Of Electricity For Operation Of 2 Palm Oil Mills PTPN V

PLN Dock Photo

JAKARTA - PT PLN (Persero) is ready to supply the electricity needs of PT Perkebunan Nusantara (PTPN) V of 9.3 MW.

This cooperation step is a synergy between two SOEs to deactivate the Captive Power plant owned by PTPN V.

PLN Sumatra Kalimantan Regional Business Director Adi Lumakso ensured that PLN would supply electricity to two palm oil mills owned by PTPN V with reliable supplies.

This cooperation, said Adi, could be a win-win solution for the two SOEs.

PTPN V is able to pocket operational cost savings, while electricity absorption from PLN can increase by switching to PLN electricity.

Adi explained that by using PLN electricity, PTPN V is priced at an industrial rate of IDR 1,090.78 per kWh.

"One kWh of electricity is equivalent to 0.2845 liters of fuel or Rp. 6,372 per kWh, with industrial fuel prices of around Rp. 22,400 per liter. So in terms of electricity prices, it is more efficient, not to mention other aspects such as maintenance," said Adi.

Adi explained that the current capacity of the electricity system in Riau is 1,153 MW, with a reserve of 192 MW.

"This electricity condition is very sufficient and ready to support the growth of the industrial sector in Riau," said Adi.

Director of PTPN V Jatmiko K Santosa said this step is a synergy between SOEs to reduce the company's operational costs.

Jatmiko explained, by switching 2 Palm Oil Mills to PLN electricity, PTPN V in increasing cost efficiency by Rp 14.5 billion per year.

Jatmiko added that PTPN V will allocate electricity from PLN for the Sei Artificial Palm Oil Mill in Siak and Tanah Putih in Rokan Hilir.

This cooperation will continue in accordance with PTPN V's plan to make 100 percent of electricity flow connectivity from PLN.

"Furthermore, in 2023, we plan to add PLN electricity connectivity in 57 locations, each of which is 49 residential housing, 2 housing estates and 5 factory housing. And in 2023, next year PLN will also be equipped with electricity connectivity in 10 palm oil mill units," added Jatmiko.