ELECTRICITY DEMAND PROJECTIONS

“The target of 35.000 MW is not an easy goal, but it must be achieved through hard work. Power sufficiency is the KEY for economic growth and people’s prosperity”, President Joko Widodo, April 7th 2015.

Power outages in almost all areas are caused by a power shortage. If special attention is not paid to this and no extraordinary breakthroughs are made, we could have a power crisis within the next three to four years. This would fail to support people's activities, decrease industrial competitiveness and slow down economic growth. A limited power supply, which leads to an inability to meet growing needs, is caused by the lack of power plant development of 6.5% compared to the 8.5% growth in electricity demand over the last five years.

Currently, total national installed capacity is 50,000MW produced by power plants built by PLN and private companies since PLN’s establishment. With an economic growth projection of 6-7% per year, within five years we will need an addition power production of 35,000MW or 7,000MW per year. Therefore, the government has no option but to increase power capacity by 35,000MW. This electrification program is a strategic national program as stated in the National Mid-Term Development Plan 2015-2019. The electricity demand will be rise harmonically align with Indonesia economic growth and population of Indonesia resident. in 2025, the electricity demand will rise to 457 TWh with 8,6% / year of the average growing. Non-coincident peak load also will be rise to 74.383 MW with 8,4% / year of the average growing.