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Home International Customs Indonesia

Indonesia imports electricity from Malaysia

byCT Report
25/01/2016
in Indonesia
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JAKARTA: Indonesia, through its state power utility company PLN, has started importing electricity from Malaysia through Sesco, the Malaysian electricity firm, according to PLN spokesman Agung Murdifi.

Indonesia began importing power from Malaysia after the interconnection power grid between the two countries was built on January 20, 2016.

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Agung remarked here the other that the power supply from Malaysia was channeled through an extra-high voltage transmission system (Sutet), with a capacity of 275 kV. It is operated by the Bengkayang Substation (Gitet) in West Kalimantan and the Membong Gitet in Serawak of Sesco.

“This interconnection has undergone several trial tests,” stated the PLN spokesman.

According to Murdifi, in the first phase, Sesco will distribute 10 megawatts (MW) of electricity and will be increased gradually to 50 MW by the end of March 2016.

Sesco will then regularly supply 50 MW of electricity beyond the peak hours (LWBP) and 230 MW during the peak hours (WBP).

He claimed that through the import of electricity, PLN would be able to save Rp3.5 billion per day as it would help reduce its basic cost from Rp2,700 per kilowatt hour (kWh) to Rp1,700 per kWh.

PLN and Sesco have signed a sale-purchase contract or power exchange agreement (PEA) on the export-import of electricity for a period of 25 years.

Based on the PEA, for a period of the first five years, Indonesia will purchase 50 MW of electricity at the LWBP time and 230 MW at the WBP time from Malaysia.

In the coming five years, PLN will be able to sell electricity to Malaysia.

Agung further elaborated that the West Kalimantan-Serawak power interconnection network is part of the ASEAN Power Grid, which will connect the electricity networks of all ASEAN member countries.

“The West Kalimantan-Serawak power grid is the first of its kind for Indonesia and PLN. It was the first project of its kind for the Malaysian Sesco,” the PLN official pointed out.

He remarked that the initiative to build the electricity interconnection network was initially put forth during the first forum of the Head of ASEAN Power system Utilities Association (HAPUA).

“The ASEAN Power Grid memorandum of understanding was signed in Singapore in 2007,” he noted.

He said that the electricity integration system was also one of the targets of the ASEAN Economic Community (AEC).

The ASEAN is aware of the fact that power infrastructure plays a crucial role in the efforts to boost economic growth and create prosperity.

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