Tuesday, 18 September 2012


The State Electricity Company (PLN) particularly generators in Java and Bali would buy goods and services in Java and Bali would buy goods and services at competitive prices in the sense that they are ‘not always cheap’ but must be of high quality. PLN, especially of Java-Bali Service Division, saw that it was no longer the time to buy goods and services at low price but of short durability. “To illustrate, if we wish to buy a car of Mercedes Benz quality it should be of Mercedes Benz price, not that of other brand. We are avoiding cheap products of unguaranteed quality if the quality is good and the price is competitive it could be relied on. PLN’s business promises reliability and therefore we need high quality goods” Adi Priyanto, manager of PT PLN (Persero) AP Bogor disclosed to Business News sometime ago’.

PLN was ready with the regulation issued by the Government, including the policy for feed-in tariff. In addition to that, PLN was ready to use renewable energy (ET) to replace diesel or fuel. “When I was unit operator at Nusa Penida, we already had installed wind turbine. We directly buy from cooperatives appointed by the Provibcial Government. We are selling system such as Photovoltaic solar cell compatible to the PLN system in Nusa Penida” Adi was quoted as saying.

Today PLN was applying 2-3 percent ET and was waiting for infra structure and supporting systems in order to maximize ET application including solar cell. “If there is offered IT, we accept. In principle we are constantly striving to reduce application of fossil energy and coal” Adi remaked.

PLN’s Service unit for Bogor and Surrounding, had operated micro hydro for the powerhouse. PLN’ R&D Division in Cipayung West Java had received the micro hydro system unit which used the Leuwiliang waterfall in Bogor. “We are constantly probing the Micro Hydro ET in West Java for a maximized function”.

Beside Micro Hydro, the generator in Bogor had also functioned the geo-thermal as power to the level of 200 MW at Mount Salak. The current supply to Bogor was considerably plentiful. “The Chevron company run it. We are now probing on the use of solar cell, but we still waiting for the investor; we are open to investors who are interested; but price is decided by the Government, not PLN”.

The application of mixed energy for electrification in Bogor and Surrounding had reached 100 percent. But in the remote regency like Leuwiliang application was only around 80%. Bogor powerhouse was inter-connected with Java Bali generator system.

Meanwhile the National Council of Energy (DEN) saw the outcome of the development of Independent Village Energy (DME) in some regions in Indonesia was not maximized or was even at the pont of zoro. The Government had built 210 DME’s but 20% of them failed. The cause was program of the Central Government was not well responded by the Provincial Government had built 210 DME’s but 20% of them failed. The cause was program of the Central Government was not well responded by the Provincial Government “This is typically the character of Indonesians. Because oil failure in Independent Village Energy the Provincial Government felt they were not involved in the project underway. Only when the project was completed the Central Government passed on the project to the Provincial Government. The provincial Government refused to continue the project, The result was many project had gone awaste” Rinaldy Dalmi of DEN disclosed to Business News sometime ago.

Other example was in Banyumas Central Java where the Government had designed application of Jatrope for ethanol. The Central Government presented the project to the local Government. “DEN saw the necessity of functioning a body like BULOG so the remaining unsold product could be stored temporarily”

On the other hand DEN saw that the development of solar powerhouse was still more efficient and economical compared to diesel application. The Government in this case PLN often miscalculated about to ratio of solar power and diesel. “When PLN compared prices of the two systems, solar power was always more expensive, but that was initial investment and was actually expensive. But operational durability of solar power was much longer compared to diesel. The final conclusion was that in the long run, solar power was relatively cheaper and more economical”.

It was impossible for PLN to buy materials at high price and sell to consumers at low price, but PLN must look at investment prospect for the long run. Solar technology already could fly air planes in spite of the high cost and investment. “In Japan, the Government is already reducing use of gas, coal and other fossil energies. In Taiwan, a sports stadium could apply solar cell energy up to 100%. Taiwan was continuing to develop their industry by using renewable energy especially solar energy, since they are not as rich as Indonesia in terms of energy resources. Their plots and co pilots had already flown around the world using solar cell airplanes”.

Indonesia held solar energy resources much more than Germany, because Indonesia as a tropical country help more solar energy compared to sub tropical countries like Germany, China, Taiwan etc. For comparison, Germany only had 30 percent of solar energy resources of that found in Indonesia, but application of solar cell in Germany already reached 1,650 mw in peak capacity installed in 2009. Germany was the second biggest market in solar energy application, while Indonesia’s potential had reached 4.8 KWh/m2/day.  

Business News - August 3, 2012 

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