PLN Sumatra business director Wiluyo Kusdwiharto (L) shakes hands with Tenaga Nasional Berhad (TNB) chief executive officer Amir Hamzah Bin Azizan on Sept. 25, upon signing a memorandum of understanding in Kuala Lumpur, Malaysia. (Source: PLN)
The Indonesian state-owned electricity company PLN on September 25 signed a memorandum of understanding (MoU) with its Malaysian counterpart, Tenaga Nasional Berhad (TNB), to begin a feasibility study on exporting 600MW of power to the neighbouring country.
In a statement, PLN said it plans to connect its electricity transmission network on Sumatra island to TNB's western network by 2028.
The two sides are scheduled to form a joint venture company to develop and manage the project, said PLN Sumatra business director Wiluyo Kusdwiharto.
The connection is expected to help increase the reliability of electricity supply as peak demand on the Sumatra network occurs between 6:00 pm and 9:00 pm while that of Malaysia’s western network occurs between 8:00 am and 4:00 pm.
Once connected, PLN Sumatra will have a 33 percent reserve margin – the difference between capacity and demand – which is within the International Energy Agency’s recommended reserve margin of 20 to 35 percent.
Earlier in 2017, PLN and TNB signed a MoU on implementing a two-year feasibility study for constructing a 400MW coal-fired power plant in Kalimantan, the Indonesian territory on the island of Borneo. The plant is to supply electricity to Malaysia’s Sabah state.
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