 The technical assistance by Asian Development Bank to Indonesia for preparing a power interconnection project between Java and Bali islands
We have been retained by ADB to provide a technical assistance (TA 7325-INO) to Indonesia. The scope of work under the TA consists the review and update of existing pre-feasibility studies that have been financed by PT PLN for the HVAC transmission lines and substations of the second Java - Bali power interconnection; carrying out the feasibility study of the proposed project including technical, economic and financial studies as well the social and environmental impact assessment and the relevant mitigation plans. In addition, the scope of work includes the review the Government tariff strategy and proposing a plan for progressively removing the public service obligation (PSO).
Some of the key issues faced by the energy sector in Indonesia are present high share of oil in the energy mix, its dependence on oil imports, sub-optimal operation of the energy sector due to subsidized energy prices, the bottlenecks in generation and transmission systems and the need for urgent expansion of power infrastructure in view of increasing demand.
The development direction of the energy sector in the country emerges from three key guiding plans/programs, i.e. the Medium Term Development Plan (2004-2009), Government’s Energy Blueprint (2005-2025) and a Fast Track Program (FTP) aimed reducing the country’s dependency on expensive oil based generation, meeting the increased demand for electricity and reducing government’s fuel subsidy or public service obligations. Additionally, in securing lndonesia from electricity power crisis due to the growing demand, the Government of lndonesia, through a Presidential Regulation, has taken strategic measures, among others in issuing the FTP for coal-fired plants and a second fast track program for another 10,000 MW using supercritical coal, geothermal energy, and renewable energy resources.
As per the generation expansion plan of the Government (2009-2018), the estimated current peak load will increase from 17647 MW in 2008 to 50938 MW in Java-Bali system out of which, the Bali system alone will see a growth from its current 468 MW in 2009 to 1271 MW in 2018. On the other hand, expected generation capacity additions in the system during the same period will increase from 22296 MW to 62279 MW. The system is expected to receive power through a 3,000 MW submarine cables from additional generation planned to be built in Sumatra.
The economic importance of Bali as a tourist destination, current electrification rate (72%) and power consumption pattern (about 46% of demand being from commercial consumers) indicate toward a substantial increase in demand for power there. The current and planned generation capacity in Bali Island will not be sufficient to meet the increasing demand and therefore, need will be to bring power from Java. The existing 150 kV submarine interconnection with an initial capacity of 6x100 MW between Java and Bali out of which only two cables remain will not be sufficient to bring the additional power from Java. Therefore, the Government is proposing to build an extra high voltage power overhead transmission line with a capacity of 1,500 MW between Java and Bali to meet the power demand in Bali. As the construction of overhead line may be considered environmentally sensitive, in addition to the option of overhead transmission line, the feasibility of a submarine transmission cable is also to be studies for making a decision on an optimal and sustainable solution.
Tags: TA 7325-INO: Java - Bali 500 kV Power Transmission Crossing, PT PLN, ADB, HVAC Transmission Line, Feasibility Study, Route of Transmission Line, Sub Marine Cable, Transmission Systm Planning, Demand for Electricity, Tariff Study, Public Service Obligation, PSO
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