Mineral-energy-international.com, The first 300MW unit of the 600MW Sumsel 1 mine-mouth coal-fired power plant in South Sumatra, Indonesia, is expected to start commercial operations in December after several years of delays. This plant, located in Muara Enim regency, is being developed by China Shenhua Energy and Lion Power Energy, which hold 75% and 25% stakes in the project, respectively. Once fully operational, the plant is projected to consume around 2-3 million tonnes of coal annually, with Lion responsible for sourcing the coal.
The $750 million Sumsel 1 plant is part of Indonesia’s 35GW power generation roadmap established by the government in 2015. Construction was awarded to China Shenhua Energy in 2016, with the first unit originally scheduled for completion by 2020. However, delays in land acquisition, the COVID-19 pandemic, and travel restrictions postponed the project.
Currently, construction work is in the final stages, and operational testing is set to begin soon. Meeting the target operational date will depend on the completion of a 275kV high-voltage transmission line that will connect the plant to the electrical grid. This 80km line will run through four districts in South Sumatra, and local authorities are working to expedite its construction.
The local government has instructed officials to support the power line’s construction to ensure timely connectivity. Once operational, Sumsel 1 will operate on a build-own-operate model and will have a 25-year power supply contract with state-owned utility PLN.
In summary, the Sumsel 1 coal-fired power plant is on track for a December start, contributing to Indonesia’s energy landscape while navigating various challenges along the way.