Jakarta (5 August 2015) – The top two issues facing the U.S. electric sector, aging infrastructure and reliability, will also continue to be a priority for Indonesian power producers, according to Black & Veatch, which today issued its ninth annual Strategic Directions: U.S. Electric Industry Report.
In addition, the role of Independent Power Producers (IPPs) is rising in importance in Indonesia. As part of the ambitious 35 gigawatts (GW) program, 30 GW will be driven by IPPs (which recently increased from an initial 25 GW). This focus could see a two-tier market emerge based on differing demands and ability to pay of large scale industrial users versus smaller scale industrial and domestic users. Government efforts to prioritize energy projects, including alternative energy, and to address procurement barriers should help the IPPs absorb this increase.
Amid calls for the mining industry to be energy self-sufficient and record commodity price declines, the industry is showing interest for renewable energy as a a viable and complementary power option for mines in Indonesia. Black & Veatch is also bullish on Indonesia’s potential for hydropower as well as other renewable energy including geothermal power.
In a related video, the company articulates its view on the issues facing the Indonesian power sector.
- Black & Veatch has served the energy and water industry in Asia for more than 90 years. For more than 40 years, Black & Veatch has undertaken nearly 100 energy and water projects across 24 provinces throughout Indonesia.
- Black & Veatch conducted its ninth annual survey from 4 May 2015 through 5 June 2015.
- 435 participants, based in the United States, participated in the survey. Statistical significance testing reflects precision of at least ±4.7 percent at the 95 percent confidence level.
- The full Black & Veatch report is available for download at no charge via www.bv.com/reports or the iTunes App Store®.
- Black & Veatch in Indonesia is growing and currently employs close to 100 professionals. Many of the professionals have been with Black & Veatch for more than 10 years.
- In power generation alone, the company has contributed to almost 15,000 megawatts (MW) of installed capacity throughout the country. The recently completed Tanjung Jati Unit 3 & 4, where Black & Veatch provided engineering, procurement and commissioning services, added an additional 1,320 MWs to the electric grid. The entire plant, including the recent expansion, has the capacity to provide around 12 percent of the electricity available on the Java-Bali grid. The project was named Power Magazine’s Top Plant of the Year in 2012.
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