How Indonesia is generating electricity?

1 ANSWERS

1. James Augustus
   

   Statistics are given below according to Global Energy Network Institute: Indonesia has installed electrical generating capacity estimated at 21.4 gigawatts, with 87% coming from thermal (oil, gas, and coal) sources, 10.5% from hydropower, and 2.5% from geothermal sources. Prior to the Asian financial crisis, Indonesia had plans for a rapid expansion of power generation, based mainly on opening up Indonesia's power market to Independent Power Producers (IPPs). The crisis led to severe financial strains on state-utility Perusahaan Listrik Negara (PLN), which made it difficult to pay for all of the power for which it had signed contracts with IPPs. PLN has over $5 billion in debt, which has grown markedly in terms of local currency due to the decline in the value of the rupiah. The Indonesian government has been unwilling to take over the commercial debts of PLN. In 2002, Indonesia's government undertook measures to liberalize the nation's electricity market in order to make it more interesting for foreign investment. Competition for power generation will be open on the islands of Batam, Java, and Bali by 2007. In 2008, retail competition in the electricity market will begin under the terms of the nation's new electricity law, approved in September 2002. The law requires an end to PLN's monopoly on electricity distribution within five years, after which time private companies (both foreign and domestic) will be permitted to sell electricity directly to consumers. However, all companies will need to use PLN's existing transmission network.

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