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Indonesia-Malaysia power trading to start by 2014 [free access]

February 28, 2012

The Indonesian state power company Perusahaan Listrik Negara (PLN) has announced plans to start large-scale electricity trading with Malaysia in 2014 after completing the construction of a transmission network that will connect Indonesia’s West Kalimantan and Sarawak in Malaysia. The company will be able to transfer 50-100 MW of power using the planned 275 kV power transmission line.


The tender process for the West Kalimantan-Sarawak transmission could begin this year. The company will team up with Sarawak Energy Berhad (SEB) in constructing the network. The transmission line will span 122 km from Bengkayang in West Kalimantan to Mambong in Sarawak.


Currently, the power exchange between the two countries is only 1 MW. Another transmission line plan involves connecting coal-rich South Sumatra and Peninsular Malaysia through a 250 kV subsea cable. However, these plans are still in the discussion stage. According to plans, this line should be ready for commercial operation by 2017.


PLN plans to build mine-mouth coal-fired power plants with a combined capacity of 7,310 MW in Sumatra, predominantly in South Sumatra. The electricity will be used to meet the growing electricity demand not only in the island, but also in Java.


The ministry has suggested to PLN to consider building a 4,000 MW coal-fired power plant in Batam to supply electricity to Singapore, so that Indonesia can use the gas allocation for Singapore which is currently burned to generate power for domestic purposes. Feasibility studies for this project are currently underway.