PT PLN scraps nearly 22 GW of power projects in Indonesia due to poor demand

The state-owned power utility of Indonesia PT PLN cancelled the allocation of 22,000 MW of power projects on account of low electricity demand in 2017. In its electricity procurement business plan for the year 2017-26, the utility had forecasted the annual electricity consumption to increase by an average 8.8 per cent during the 2017-26 period and suggested the development of 77,900 MW of new power projects to meet the anticipated demand. However, the actual power consumption grew by only 3.6 per cent in 2017. The business plan has, therefore, now been revised to include the development of 56,000 MW of projects. Indonesia now plans to commission only 20 GW of power plants by 2019 as against its ambitious target of 35 GW.