Householders in a province in Indonesia will soon have access to hydroelectricity, thanks to a new cross-border transmission line linking it with Malaysia.
A 145-kilometre distribution line and a new substation will be built to improve the reliability of power in West Kalimantan. Another 83-kilometre cross-border transmission line and substation will connect the Indonesian province’s power grid to that of neighbouring Sarawak – one of two Malaysian states on the island of Borneo.
The Asian Development Bank (ADB), which is funding the project, claims an estimated 230 megawatt-hour of power could be exchanged every hour between the two systems whilst 8,000 households will also be added to the Indonesian power grid.
Perusahaan Listrik Negara (PLN), Indonesian state-owned electricity company, currently uses oil for power generation, pushing the cost up to $0.25 per kilowatt-hour (kWh) but under the power exchange agreement, the cost is expected to be cut to $0.18 kWh and carbon emissions from fossil fuel based generation reduced by 400,000 tons every year by 2020. This is expected to help PLN save around $100 million every year.
Sohail Hasnie, ADB Energy Specialist said: “This is a win-win-win situation. West Kalimantan gets renewable energy and will have the ability to exchange power; Sarawak starts its first export of hydropower and the region moves one step closer to establishing a regional power transmission link that crosses Brunei Darussalam, Indonesia and Malaysia.”