Increasing the capacity of Coal Fired Power Plants is an opportunity for coal producers

Jakarta, APBI-ICMA: March 21, 2019 reported that a significant increase in the capacity of Coal Fired Power Plants in the next 10 years was a positive sentiment for domestic coal producers.

The Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said the increase in coal demand for the power plant was an opportunity for coal producers to expand their domestic market. However, it is likely that these opportunities are used unevenly.

"It is likely that for the next few years   is still dominated by companies that have already had contracts," he told Bisnis on Thursday (3/21/2019).

He said this must be a consideration for consumers, in this case PT PLN (Persero), in exploring coal needs for power plants. Because the PLN permanent suppliers generally have contracts in the long run with guaranteed adequate supply.

Even so, companies that have had difficulty penetrating their own domestic markets, generally middle and lower scale companies, still have the opportunity to participate in supplying coal to PLN. It's just that it's likely not through a long-term contract.

"The portion of the spot outside the company that is already a supplier remains open, especially if there is no stamp of selling price," he said.

Based on the PT PLN (Persero) Electricity Supply Business Plan (RUPTL) 2019-2028, in the next 10 years there will be an additional 56.4 gigawatts (GW) of power plants. A total of 27,063 MW or 48% were allocated for the PLTU.

The increase in the capacity of the power plant also significantly boosted coal demand in the next 10 years.

Until last year, the realization of coal supply for domestic plants was 91.1 million tons. In 2028, coal demand will increase to 153 million tons per year.



Related Regular News: