Indonesian Sumsel 1 coal-fired unit eyes December start

The first 300MW unit of the 600MW Sumsel 1 mine-mouth coal-fired power plant in Indonesia's south Sumatra province is scheduled to begin commercial operations in December following several years of delays.

The plant, which is located in Muara Enim regency, is being developed by China Shenhua Energy and Lion Power Energy, which have 75pc and 25pc respective stakes in the project. Once fully operational it is expected to consume around 2-3mn t/yr of coal. Lion will be responsible for sourcing the coal.

The $750mn plant is part of Indonesia's 35GW power generation roadmap developed by the Indonesian government in 2015.

The project was contracted to China Shenhua Energy in 2016. The first unit at the plant was originally scheduled for completion by 2020. But land acquisition delays and the Covid-19 pandemic and resulting restrictions on the movement of people and travel bans delayed construction, Lion said.

Construction work on the plant structure is now in the final stages and operational testing is expected to begin soon. But hitting the operational target date also depends on the completion of a 275kV high-voltage line that will connect the plant to the grid, state-owned utility PLN said. The 80km transmission line will pass through four districts in south Sumatra. The local government is pushing for the acceleration of the voltage line construction and has instructed the sub-district head and local government offices to provide support for the power line construction, PLN said.

Sumsel 1, once fully operational, will operate on a build-own-operate basis with a 25-year power supply contract with PLN, the utility said.

By Antonio delos Reyes