PLN Faces Oversupply Risk

PT Perusahaan Listrik Negara (PLN) estimated an additional supply of 3,000 MW from power plants in the Java-Madura-Bali (Jamali) System this year. PLN's Regional Business Director for Java, Madura, and Bali, Haryanto WS, said the Jamali System's installed capacity had reached 40,115 MW, with a capable capacity of 37,301 MW. As Java 7 Unit 2 Steam Power Plant (PLTU) and PLTU Tanjung Jati Unit 5 started operating, there are additional supplies of 2,000 MW. "Then, there are several more power plants that PLN will build with at least 1,000 MW capacity. So, around 2,500-3,000 MW will be added to the capacity this year," he said on Tuesday (2/23).

Indonesia will have more electricity supply this year, along with several power plants from independent power producers (IPP). Haryanto said additional generating capacity in 2022 could reach 4,000-5,000 MW. Apart from IPP, "There are two units of PLTU Batang, 1 unit of PLTU Tanjung Jati, PLTGU Jawa 1, and PLTU Cirebon," he said.

Haryanto said the additional generating capacity would enlarge the electricity oversupply in the Jamali System. For this reason, increasing electricity consumption is a serious challenge for PLN and the government. "The generating capacity, the electricity supply is very sufficient, even tend to oversupply. Therefore, we need to think of increasing demands in Jamali," he said.