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Power Crisis in Java-Bali to Ease by mid-2009

Power Crisis to End by 2010. Hotels Refusing Request to Run Gensets During Peak Power Consumption Periods.

(9/20/2008) BisnisBali reports that the current shortfall of electricity for the Java-Bali power grid should be gradually overcome starting from mid-2009. The much needed additional electrical power will come from new power generating plants coming on line in Bali and Java.

Despite the improving power situation, State Power Board (PLN) officials have renewed their call for conservation and alternative energy measure to be undertaken by industrial sites, malls, hotels and office buildings to help reduce the burden on energy production centers.

PLN officials estimate that conservation steps being taken by industry and malls have reduced power demand by 200 megawatts.

The Government are hoping for a return to "full normalcy" by 2010 when power plants capable of adding 10,000 megawatts will commence operations. Interim relief will be felt by mid-2009 when the following new generating facilities start running, expected to introduce 1,500 megawatts of new power to the grid:

● Steam generating power station at Labuhan in Anyer

● Steam generating power station in Indramayu

● Steam generating power station at Rembang.

Officials are blaming the current power crisis on problems with the supply of fuels needed to run power plants and a prolonged drought causing hydroelectric power centers to operate at substantially reduced levels.

PLN continues to call on all their customers to do everything they can to reduce peak power demand.

Many Company's Refusing to Run Generators

A separate article from Bisnis Indonesia states that hotels and restaurants are refusing calls from PLN to use on-site generator sets during peak consumption hours.

Members of the Indonesian Hotel and Restaurant Association (PHRI) are calling on the government to encourage the use of gensets by providing financial incentives for company producing their own power. According to the National PHRI Chairman, Yanti Sukamdani, speaking on behalf of her members, said: "We continue to refuse to use our gensets at peak power usage periods. The government should introduce special power rates for the Hotel and Restaurant sector."

She said the government's request to use genset during the peak consumption hours of 17:00 22:00 hours was not an option for most of the PHRI members. If, however, the government was prepared to subsidize the cost of fuel from running generator sets her members would greet PLN's request with more enthusiasm.

Sukamdani issued an ominous warning saying employment terminations would be the eventual result of current power policies and high energy costs from PLN.