Norman Harsono, Jakarta – Indonesian state-owned electricity company PLN on Wednesday signed a memorandum of understanding (MoU) with its Malaysian counterpart, Tenaga Nasional Berhad (TNB), to begin a feasibility study on exporting 600 MW of power to TNB.
PLN said in a statement that it expected to connect its Sumatra network to TNB's western network by 2028.
"It is also possible that we will form a joint venture company to develop and manage the project," said PLN Sumatra business director Wiluyo Kusdwiharto.
Wiluyo said that connecting the two grids would increase the reliability of electricity supply, because peak demand on the Sumatra network occurred between 6:00 p.m. and 9:00 p.m. Western Indonesia Time (WIB) and complemented the on-peak hours of Malaysia's western network, which occurred between 8:00 a.m. and 4:00 p.m. WIB.
Once the networks were connected, PLN Sumatra would 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.
PLN and TNB previously signed an MoU in 2017 on a two-year feasibility study for constructing a 2x200 MW 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 on Borneo.