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Arcandra Tahar Visited Jangkang Biogas Power Plant and Nyuruk Solar Power Plant in Bangka Belitung Province

Dec 28, 2017

On December 15, 2017, Vice Minister of Energy and Mineral Resources, Arcandra Tahar, visited Biogas Power Plant (PLTBG) in Jangkang and Nyuruk Solar Power Plant (PLTS) in East Belitung District, Bangka Belitung Province.

During his visit to PLTBG in Jangkang, he conveyed that there is an increase in the interest of renewable energy investment, especially in areas where the Cost of Goods Provision (BPP) is higher than the National BPP, and one of them is in Bangka Belitung Province.

"In total, in 2017, 68 renewable energy Power Purchase Agreements (PPAs) have been signed between PLN and the developer. It increased fourfold compared to the previous year, where it were only 16 PPAs in 2016," said Arcandra.

Arcandra pointed out, for Bangka Belitung where its BPP region is the highest in Sumatra (Rp 1.907/kWh), the purchase price for renewable energy to PLN is 85% or Rp 1.621/kWh.

"The production cost of PLTBg (Jangkang) is even lower than the local BPP, it's interesting," he continued. As known, the electricity from PLTBg Jangkang is sold to PLN at Rp 975/kWh.

PLTBg operated by AANE in Jangkang Village, Dendang District, East Belitung Regency is a subsidiary of PT Austrindo Nusantara Jaya (ANJ), engaged in palm oil processing. AANE was established in 2009 and is in charge of treating palm oil mill effluent (POME) generated by ANJ to become electricity.

In 2013, AANE signed a power sales contract with PLN and was the first biogas developer to sell electricity commercially. In 2016, AANE PLTBg provided 1.8 MW for 2,000 households with a capacity of 900 VA.

The Vice Ministry of Energy and Mineral Resources and the rest of the group then scheduled to conduct a visit to the communal off-grid PLTS in Dusun Tungkup, Nyuruk Village, East Belitung District. The visit to the two renewable energy plants is conducted to see the potential of renewable energy interconnection to the PLN network.

The interconnection of PLTBg owned by AANE to PLN can be used as an example of replication for other PLTBG in Indonesia. Utilization of POME into electrical energy will add value to Indonesia as the second largest palm oil producing country in the world. Meanwhile, the interconnection of Tungkup PLTS to PLN network can also be used as replica example for other off-grid PLTS project when PLN network starts to step in. The relatively small capacity of the PLTS is considered not to have a significant impact or disruption to the PLN network system.

Since 2011 to the end of 2016, the Directorate General for New, Renewable Energy and Energy Conservation (EBTKE) has built more than 600 PLTS and communal PLTMHs with a total capacity of 25 MW. PLN is currently expanding to provide access to electricity to various villages in Indonesia so that the interconnection of off-grid PLTS becomes essential for the sustainability and utilization of PLTS built from APBN funds for the community welfare.

The electrical interconnection from renewable energy to PLN's network can also contribute significantly to achieving 23 percent of renewable energy targets in the national energy mix by 2025, also help Indonesia achieve a 29 percent reduction in greenhouse gas emissions by 2030.

This article is adopted from the press release issued by ESDMĀ click here.

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