Indonesia Will Build 12 Hydropower Plant Amount US$ 10 Billion

JAKARTA - The government of Indonesia plans to build a hydroelectric power plant (HEPP) in 12 reservoirs owned by the government with a projected investment of Rp 100 trillion or arround US$ 10 Billion. The project to reduce the burden of subsidies that continue to soar .

Deputy of Infrastructure--Dedy S Priatna said that the government is currently conducting a feasibility study on the construction of hydroelectric dams owned by the government. Budget feasibility study was reached Rp36 billion to Rp60 billion .

"On January 29, 2014 ago , along with the vice president will decide accelerated utilization of water resources for hydropower . Because constructed obvious benefits for the country , especially in reducing energy subsidies , " he said, Monday (02/10/2014) .

He revealed the cost of electricity generation would average Rp1.217 per kwh . In fact , the average selling price reached Rp725 per kWh. That is , each one kwh is provided, the government subsidizes about 500 per kwh.

According to him , the cost of production of hydropower is the lowest compared with other kinds of plants . Costs incurred hydropower recorded only Rp156 per kWh , compared to the power plant far Rp810 per kWh , PLTGU Rp1.002 per kwh or PLTP Rp1.121 per kwh.

"If for example, 5,000 megawatts were built. Based on my calculations, the electricity subsidy we could save about 10 trillion per year, " he said.

Despite the low production costs, he claimed that the investment must be spent to build a relatively large hydropower, ie U.S. $ 2 million to U.S. $ 3 million per megawatt. Therefore, funding for hydropower will also involve private investors.

During the progress of the construction of hydropower slowest compared to other types of plants. Provision of electricity from hydropower currently only 3,394 megawatts, is far from the true potential of 75,000 megawatts. It was also evident from the lack of optimization of the reservoir.

Dedy said the government currently has 261 reservoirs . From the number of dams , only 22 dams that already have hydropower. According to him, the construction of hydroelectric dams could be faster because there is no land acquisition issues.

"The existence of these reservoirs can also reduce the cost of production of hydropower by 30%-40%. Then, the construction time is also faster 2.5 years," he explained. (*)

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