"Indonesia’s economy is growing, but many of its 13 000 islands are in need of a more stable power supply. Distributed energy is seen as the key. For example MAN D&T is to supply of 20 of its 51/60DF gas/diesel gensets to be deployed in several of the country’s inhabited islands. And Wartsila is to provide the generating equipment for a new 48 MW power plant to be built at Kupang. It will operate with five 34DF dual-fuel engines (photo) initially running on diesel fuel, but switching to gas when the local gas supply infrastructure is sufficiently developed."
There was some discussion previously about the cost of diesel running these generators.
If it cost US$0.26/KWh in 2009 using diesel, how much do you think it will cost in the future now that oil hit US$71/ barrel " In 2009, electricity produced by imported diesel fuel cost $0.26/kWh."
https://asian-power.com/power-utili...-turn-diesel-gas-power-production-short-lived Why Indonesia's decision to turn to diesel gas for power production is "short-lived"
It is also expensive and risky, analyst says.
The announcement last week of new diesel gas contracts and more diesel-powered generators for power production in hundreds of locations across Indonesia is short-sighted, expensive and risky, according to the Institute of Energy Economics and Financial Analysis (IEEFA).
"While national government officials have stated support for renewable energy policies that would expand remote and rural electrification, including a plan to install solar photovoltaics in 2,500 villages in 2019 and 2020, the Indonesia electric monopoly PLN continues to plan for the procurement of diesel generators for up to 400 locations in Indonesia, all of which would be fueled by imported diesel fuel, according to Sara Jane Ahmed, an IEEFA energy finance analyst.
Renewable energy makes better economic sense for Indonesia’s many small islands and isolated locales. It allows for local energy security and saves money by reducing dependence on imported diesel.
Here's more from IEEFA: diesel generation by comparison risks burdening Indonesia with years of high-cost electricity delivered by outdated technology.
Indonesia has an opportunity today to move forward, instead of backwards.
In 2009, electricity produced by imported diesel fuel cost $0.26/kWh.
The price of oil has just increased to US$71/barrel, so it won't be long before PLN is broke.
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