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Study on Economic Partnership Projects

in Developing Countries in FY2015

Feasibility Study of power supply upgrading


in North West of Java Island

Final Report

February, 2016

Prepared for:
Ministry of Economy, Trade and Industry

Prepared by:
KPMG AZSA LLC
Tokyo Electric Power Services Co., Ltd.

Reproduction
prohibited

Contents
Chapter1.

Summary ................................................................................................................................... 1-1

1.1

Needs and Background of the Project................................................................................................. 1-1

1.2

Outline of the Project .......................................................................................................................... 1-1

1.2.1

Required transmitting capacity ....................................................................................................... 1-1

1.2.2

Selection of the method to upgrade the transmission capacity ....................................................... 1-1

1.2.3

Selection of the type of HTLS ........................................................................................................ 1-3

1.2.4

Re-conductoring Work ................................................................................................................... 1-4

1.2.5

Total Project Cost ........................................................................................................................... 1-4

1.3

Content and Result of Economical Evaluation ................................................................................... 1-5

1.4

Content and Result of Financial Evaluation ....................................................................................... 1-6

1.5

Comparison between Reconductoring and New Transmission Line .................................................. 1-6

1.6

Environmental and Social Practicability ............................................................................................. 1-6

1.7

Project Implementation Schedule ....................................................................................................... 1-7

1.8

Advantages of Japanese Enterprises in Technologies ......................................................................... 1-7

1.9

Financing Options for the Project ....................................................................................................... 1-7

1.10

A Concrete Schedule and a Risk of Realization ................................................................................. 1-8

1.11

Project Implementation Map of West Jawa ........................................................................................ 1-8

Chapter2.

Objective of the Study, Content and Methodology ................................................................ 2-1

2.1

Study Objective .................................................................................................................................. 2-1

2.2

Study Contents .................................................................................................................................... 2-1

2.3

Details of study contents ..................................................................................................................... 2-3

2.4

Implementation Schedule of the Study ............................................................................................... 2-5

Chapter3.
3.1

Background of the Study and Review of the Previous Study ................................................ 3-1

Outline of the study area ..................................................................................................................... 3-1

3.1.1

Overall of Indonesian economic situation ...................................................................................... 3-1

3.1.2

The economic situation of Java northwestern area ......................................................................... 3-3

3.2

Demand ............................................................................................................................................... 3-5

3.2.1

Demand record ............................................................................................................................... 3-5

3.2.2

Demand forecast ............................................................................................................................. 3-5

3.2.3

Power generation development plan............................................................................................... 3-7

3.2.4

Transmission line projects in RUPTL 2015-2024 .......................................................................... 3-9

3.3

Review of the previous report ........................................................................................................... 3-11

3.3.1

Necessity study in the previous report in 2008............................................................................. 3-11

Chapter4.

System Analysis ......................................................................................................................... 4-1

4.1

Conducted survey ............................................................................................................................... 4-1

4.2

Analysis condition .............................................................................................................................. 4-1


1

4.2.1

Target year ...................................................................................................................................... 4-1

4.2.2

Latest transmission augmentation plans in the northwestern region of Jawa-Bali system ............. 4-3

4.2.3

Demand assumptions ...................................................................................................................... 4-7

4.2.4

Loading conditions of generators ................................................................................................... 4-7

4.2.5

Allowable voltage range ................................................................................................................. 4-9

4.2.6

Transmission line capacity ............................................................................................................. 4-9

4.2.7

Other conditions for the system analyses ....................................................................................... 4-9

4.3

Power flow analyses ......................................................................................................................... 4-10

4.3.1

Result of power flow analyses under the normal (N-0) conditions before reconductoring .......... 4-10

4.3.2

Result of power flow analyses under the N-1 conditions ............................................................. 4-11

4.3.3

Necessary capacity of reconductored transmission lines.............................................................. 4-13

4.4

Fault current analyses ....................................................................................................................... 4-13

4.4.1

Conditions for the fault current analyses ...................................................................................... 4-13

4.4.2

Result of fault current analysis ..................................................................................................... 4-13

4.4.3

Overview of the rsult of fault current analysis ............................................................................. 4-16

4.5

Measures against fault current problems .......................................................................................... 4-17

4.6

Stability analyses .............................................................................................................................. 4-29

4.7

Recommendations............................................................................................................................. 4-35

Chapter5.

Technical Feasibility of the Project ......................................................................................... 5-1

5.1

Scope of the Project ............................................................................................................................ 5-1

5.2

Transmission Line Project .................................................................................................................. 5-1

5.2.1

Selection of the Method to Upgrade the Transmission Capacity.................................................... 5-1

5.2.2

Selection of the Type of HTLS ....................................................................................................... 5-6

5.2.3

Evaluation of transmission losses ................................................................................................. 5-11

5.2.4

Re-conductoring Work to HTLS .................................................................................................. 5-12

5.2.5

Re-conductoring Costs ................................................................................................................. 5-19

5.2.6

Construction Schedule .................................................................................................................. 5-20

5.2.7

Points to be Considered for Stringing Work ................................................................................. 5-21

5.3

Substation Project ............................................................................................................................. 5-25

5.3.1

Overview of Existing 500 kV Substations.................................................................................... 5-25

5.3.2

Adaptation and Replacement Works for Substation Equipment ................................................... 5-34

5.3.3

Substation Project Costs ............................................................................................................... 5-36

5.4

Total Project Costs ............................................................................................................................ 5-36

Chapter6.
6.1

Environment and Social Practicability ................................................................................... 6-1

Environmental and Social Impact of the Project .................................................................................... 6-1

6.1.1

Social resettlement .......................................................................................................................... 6-1

6.1.2

Electric and Magnetic Field Intensities .......................................................................................... 6-1


2

6.1.3

Corona Noise .................................................................................................................................. 6-2

6.1.4

Radio Noise .................................................................................................................................... 6-2

6.2

Review according to the Japan International Cooperation Agency (JICA) Guidelines for

Environmental and Social Considerations .......................................................................................................... 6-2


6.2.1

Assessment of Environmental Checklist under JICA Guidelines ................................................... 6-2

6.2.2

Project classification according to JICAs Guidelines .................................................................... 6-8

6.3

Host countrys environmental regulations and standards ................................................................... 6-8

6.3.1

Outline of Environment-Related Laws and Regulations of Host Country ....................................... 6-8

6.3.2

Details of Environmental Impact Assessment of the Host Country required for the Project ....... 6-12

Chapter7.
7.1

Financial and Economic Feasibility ........................................................................................ 7-1

Capital Costs of Project ....................................................................................................................... 7-1

7.1.1

Construction Process and Implementation Period .......................................................................... 7-1

7.1.2

Capital Costs and Assumptions ...................................................................................................... 7-1

7.2

Economic Analysis .............................................................................................................................. 7-4

7.2.1

General Approach and Methodology .............................................................................................. 7-4

7.2.2

Economic Benefit ........................................................................................................................... 7-5

7.2.3

Economic Cost................................................................................................................................ 7-6

7.2.4

Project Life and Operation Period ................................................................................................... 7-7

7.2.5

Result of economic evaluation ........................................................................................................ 7-7

7.2.6

Sensitivity analysis of economic results ....................................................................................... 7-10

7.3

Financial Analysis ............................................................................................................................. 7-11

7.3.1

General Approach and Methodology ............................................................................................ 7-11

7.3.2

Financial Benefit .......................................................................................................................... 7-11

7.3.3

Financial Cost ............................................................................................................................... 7-13

7.3.4

Project Life and Operation Period ................................................................................................. 7-14

7.3.5

Results of Financial Evaluation .................................................................................................... 7-14

7.3.6

Sensitivity Analysis from a Financial Standpoint.......................................................................... 7-16

7.4

Conclusion of Financial and Economic Analysis ............................................................................... 7-16

7.4.1

Economic Analysis........................................................................................................................ 7-16

7.4.2

Financial Analysis ......................................................................................................................... 7-16

7.4.3

Comparison between reconductoring and new transmission line ................................................. 7-16

Chapter8.

Project Implementation Schedule ........................................................................................... 8-1

8.1

Entire Schedule ................................................................................................................................... 8-1

8.2

The schedule to the EPC agreement ................................................................................................... 8-1

8.3

Construction schedule ......................................................................................................................... 8-1

Chapter9.
9.1

Advantages of Japanese Enterprises in Technologies and Financing Options for the Project9-1

Comprehensive Advantage of Japanese Enterprises in Technologies ................................................. 9-1


3

9.1.1

International Competition and Possibility to obtain this Contract by Japanese Entities ................ 9-1

9.1.2

Possible Materials Supplied from Japan and their Relevant Cost .................................................. 9-1

9.1.3

Necessary Countermeasure to Promote securing of the Contract by Japanese Entities ................. 9-1

9.2

Financing Options for the Project ....................................................................................................... 9-2

9.2.1

Overview of Transmission Line Financing in other countries ........................................................ 9-2

9.2.2

Overview of Financing in the Indonesian Power Sector ................................................................ 9-2

9.2.3

Overview of Financing at PLN....................................................................................................... 9-7

9.2.4

Use of Japanese ODA Loan Requirements in the Proposed Project............................................... 9-7

9.2.5

Implementation Capability of Relevant Agencies of Indonesia ..................................................... 9-8

9.2.6

Evaluation of Implementation Capability of the Relevant Agencies of Indonesia ....................... 9-11

9.2.7

PLNs Financial Conditions ......................................................................................................... 9-13

9.2.8

Current Situation for the Japanese ODA Loan ............................................................................. 9-15

9.2.9

Implementation Plan for Japanese ODA Loan ............................................................................. 9-17

(Appendix)

Workshop

A list of abbreviations
Abbreviation

Official name

AC

Alternate Current

ACSR

Aluminum Conductor Steel Reinforced

BT

Bus Tie

cct

circuit

CB

Circuit Breaker

CFCC

Carbon Fiber Composite Cables

COD

Commercial Operation Date

CT

Current Transformer

DC

Direct Current

DIY

Daerah Istimewa Yogyakarta (Special Region of Yogyakarta )

DS

Disconnecting Switch

EIA

Environmental Impact Assessment

EIS

Environmental Impact Statement

EMoP

Environmental Monitoring Plan

EMP

Environmental Management Plan

EPC

Engineering, Procurement and Construction

F/S

Feasibility Study

FTP II

Fast Track Program II

GCB

Gas Circuit Breaker

GIS

Gas Insulated Switchgear

GPS

Global Positioning System

GTACSR
HTC

Gap type Thermal-resistant Aluminum alloy Conductors, Steel


Reinforced
High Temperature Conductor

HTLS(C)

High Temperature Low Sag Conductor

HVDC

High Voltage Direct Current

ICNIRP

International Commission on Non-Ionizing Radiation Protection

IEC

International Electrotechnical Commission

IEE

Initial Environmental Examination

IPP

Independent Power Producer

JICA

Japan International Cooperation Agency

LAA

Land Acquisition Act

LAP

Land Acquisition Plan

MVA

Mega Voltage Ampere

MW

Megawatt

NGO

Non-Governmental Organizations

ODA

Official Development Assistance

O&M

Operation and Maintenance


5

P3B-JB
PB

Penyalurandan Pusat Pengatur Beban Jawa-Bali (Java-Bali


Transmission and Load Dispatching Center )
Project Brief

PQ

Prequalification

PLN

Perusahaan Listrik Negara Persoro

PLTA

Pusat Listric Tenga Air (Hydro Power Plant)

PLTG

Pusat Listric Tenga Gas (Gas Power Plant)

PLTGU

Pembangkit Listrik Tenaga Gas & Uap (Combined Cycle Power Plant)

PLTMG

Pembangkit Listrik Tenaga Mesin Gas (Gas Engine Power Plant)

PLTP

Pembangkit Listrik Tenaga Panas Bumi (Geothermal Power Plant)

PLTU

Pembangkit Listrik Tenaga Uap (Steam Power Plant)

PSS

Power System Stabilizer

PSS/E

Power System Simulator for Engineering

RJBR

REGION JAWA BARAT

RJKB

REGION JAKARTA & BANTEN

RJTD

REGION JAWA TENGAH & DIY

ROW

Right Of Way

RUKN

Rencana Umum Ketenagalistrikan Nasional (General National Power


Plan)

SNI

Standar Nasional Indonesia (Standard of Indonesia)

SR

Shunt Reactor

SRB

Sub Region Bali

S/S

Substation

SVC

Static Var Compensators

TACFR

Thermal-resistant Aluminum alloy Cable, Fiber Reinforced

TACSR

Thermal-resistant ACSR

TAL

Thermal-resistant Aluminum alloy wires

T/L

Transmission Line

TR

Transformer

UTACSR

Ultra Thermal-resistant ACSR

WB

World Bank

XTACIR/AC
XTAL
ZTACIR/AC
ZTAL

Extra Thermal-resistant Aluminum alloy Conductor, Aluminum-Clad


Invar Reinforced
Extra Thermal-resistant Aluminum alloy wire
Super Thermal-resistant Aluminum alloy Conductor, Aluminum-Clad
Invar Reinforced
Super Thermal-resistant Aluminum alloy wire

Chapter1. Summary
1.1 Needs and Background of the Project
The power system on the Java Island of Indonesia is connected with the one of Bali Island, and is integrally
operated as Jawa-Bali power system. The maximum power demand of Jawa-Bali power system in 2014 was
33,321MW, which was equivalent to 72 % of the entire power demand in Indonesia including Sumatra Island and
others. And as for the transmission lines in Java-Bali power system, there are 150kV transmission lines which
covers most of the region together with 500kV transmission lines on two circuits running from west to east of Java
area.
PLN plans substantial power supply in West Java with its policy aiming to reduce pressure against transmission
system and prioritizing power supply closer to the region near the demand centre, Jakarta. Nevertheless, in West
Java, it is difficult to transmit power generated from newly constructed power plants to Jakarta due to lack of
capacity of existing transmission lines. In this background, PLN has planned new transmission lines in West Java.
But a number of challenges are anticipated, namely difficult land acquisition due to highly populated area,
increase in construction cost, longer construction period, limited financing and risk allocation.
With such objectives, background and review of the previous study result (Study on Upgrading Transmission
Capacity of Existing 500kV Lines in West Java, Indonesia in March 2008), and the Indonesian governments plan
of new power generation, transmission and distribution, this study evaluates and proposes feasibility of upgrading
the facilities of the existing 500kV transmission lines between Suralaya (Lama) power stations in Banten region
and Gandul substations in West Java region and the equipments of related substations (Project) in the following
manner.

1.2 Outline of the Project


1.2.1 Required transmitting capacity
The Survey Team deemed that reconductoring of the 500 kV transmission line from Suralaya (Lama) through
Balaraja to Gandul will be necessary. Necessary capacity of reconductored transmission line was 3,443MVA
(3,976A) per circuit from the results of power flow analyses jointly conducted by P3B-JB and the Survey Team
within a restricted time frame. However, this capacity was derived from the result under the conditions in 2020,
and could be short-sighted. Although the Survey Team was not able to obtain data to evidence the future necessary
capacity of the to-be-reconductored transmission line, they deemed that the preferable capacity should be as large
as rationally achievable considering generation development in western Jawa region in future. According to PLN,
the expected capacity was 4,680 MVA after reconductoring.

1.2.2 Selection of the method to upgrade the transmission capacity


From the results of the system analysis in 2020 conducted in the Study, the transmission capacity more than
987 amperes per conductor in the Previous Study is found to be necessary. Therefore methods to upgrade as much
capacity as possible are considered in this section. However the upgrading method by constructing a new
1-1

transmission route is excluded because acquiring the lands and right-of-ways for a new transmission line is
extremely difficult in Indonesia.
The following several methods to upgrade the transmission capacity are candidates for the Project.
(1)

Upgrading by using conventional ACSR

(2)

Adoption of HTC (High Temperature Conductor)

(3)

Adoption of HTLS (High Temperature Low Sag Conductor)

Each method and the result of study are described as follows.

(1)

Upgrading by using conventional ACSR

This method enables the transmission capacity to increase by increasing the number of conductors per phase, or
replacing the existing conductors with larger ones, in the case of using conventional ACSR. If the existing
conductors are replaced by both methods, it goes without saying that the components of the towers such as the
main posts and the foundations do not have enough strength to support the loads due to the increased weight and
wind pressure. Consequently, reconstruction of the existing towers is not avoidable, and this method is not
appropriate for the Project because the Project cost and period will be increased.

(2)

Adoption of HTC (High Temperature Conductor)

HTC such as TACSR (Thermal resistant AACSR) and UTACSR (Ultra Thermal resistant AACSR) has higher
allowable temperature than conventional ACSR, and therefore has greater current capacity. On the other hand,
conductors with higher temperature have larger sag and cannot probably keep the clearances between conductors
and objects. Reducing the span length is a solution to keeping the same sag at the maximum allowable
temperature. The span length can be reduced by installing a new tower between each span. This method enables
the transmission capacity to increase under keeping the required ground clearance. However, due to installation of
many new towers, the Project cost and period will be increased. In this method, new towers have to be installed at
all the mid-spans. Therefore, this is not appropriate for the Project.

(3)

Adoption of HTLS (High Temperature Low Sag Conductor)

HTLS has as high allowable temperature as HTC, and also has lower sag than HTC. Generally, the characteristic
is realized by using a material with the low co-efficient of linear expansion value as the core. This method enables
the transmission capacity to increase under keeping the required ground clearance.
The merits in this method are as follows.

Modifications to existing towers, such as reinforcements or reconstruction, are not necessary.

HTLS has twice as much current carrying capacity as the existing conductor.

Only re-conductoring enables the transmission lines to be upgraded, and it leads to the shorter
implementation period of the Project.

No additional lands are acquired, and there are few environmental and social impacts.

From the above-mentioned, this method is the most appropriate for the Project.

1-2

1.2.3 Selection of the type of HTLS


Although there are several types of HTLS, the required design conditions for up-rating conductors are as
follows.

Not to exceed the sag of the existing conductor, 21.70 m at the 500 m span.

Not to exceed the maximum tension (23,025 N) of the existing conductor.

Not to exceed the weight (1,140 kg/km) and the diameter (23.53 mm) of the existing conductor.

The following conductors are selected as candidate from the viewpoints of the above.

Thermal-resistant Aluminum Alloy Cable, Fiber Reinforced (TACFR)

Super Thermal-resistant Aluminum Alloy Conductor, Aluminum-clad Invar Reinforced (ZTACIR/AC)

Extra Thermal-resistant Aluminum Alloy Conductor, Aluminum-clad Invar Reinforced (XTACIR/AC)

(1)

Outline of conductors

Thermal-resistant Aluminum Alloy Cable, Fiber Reinforced (TACFR)

The conductor is up-rated by the use of thermal-resistant aluminum alloy wire (TAL) which has the continuous
allowable temperature up to 150C. The sag is lowered by the use of carbon fiber composite cable (CFCC) with
the low co-efficient of linear expansion value.

Super Thermal-resistant Aluminum Alloy Conductor, Aluminum-clad Invar Reinforced (ZTACIR/AC)

To increase the current carrying capacity, super thermal-resistant aluminum alloy wire (so-called ZTAL),
which can utilize up-to 210C continuously, is used. And to restrain the sag to increase, Invar core wire, whose
co-efficient of linear expansion value is smaller, is adopted to satisfy the requirement.

Extra Thermal-resistant Aluminum Alloy Conductor, Aluminum-clad Invar Reinforced (XTACIR/AC)

To increase the current carrying capacity, extra thermal-resistant aluminum alloy wire (so-called XTAL),
which can utilize up-to 230C continuously, is used. And to restrain the sag to increase, Invar core wire, whose
co-efficient of linear expansion value is smaller, is adopted to satisfy the requirement.

(2)

Evaluation

XTACIR/AC 230mm2 has the most current carrying capacity of the candidates for the new conductor, and is
recommended for the Project. The capacity is approximately 2.4 times as much as that of the existing conductor.

(3)

Transmission loss

In the case of flowing the same current, the losses of XTACIR/AC 230mm2 are about 1.3 times as much as those
of the existing conductor because the AC resistance of XTACIR/AC 230mm2 is about 1.3 times as high as those of
the existing conductor.

1-3

1.2.4 Re-conductoring Work


(1)

Conductors replacement methods

There are two kinds of conductors replacement methods, the tension stringing method and the cradle block
method. Each method is described as follows.
Conventional tension stringing method (in the general location)
This method is conducted by connecting the up-rating conductors to the existing conductors, and then by pulling
out the existing conductors to replace to the up-rating conductors. To implement this method the construction
workers will have to be cautious with the obstacles in the line crossings by setting up the sufficient scaffold on top
of the obstacles to avoid contact with replaced conductors. But as a merit, this method can be paid out all 4
conductors simultaneously and therefore the time of construction will be minimized.

Cradle block stringing method (for urban housing area or important line crossing)

For the urban housing area or important line crossing, the location to set up the scaffold will be very difficult to
obtain. Therefore the construction will be conducted by means of so-called cradle block system method. The
cradle block system is a method to distribute twin rollers in 20 to 30 meters intervals in the relevant span, to hang
upper roller on the existing conductor and to replace the up-rating conductor by means of the roller installed
underneath. By using this method, the sag of this conductor will be restrained by the existing conductors therefore
even if there are urban housing area or important line crossing it is not necessary to set-up any scaffoldings to pay
out the up-rating conductors. However for his method the construction speed will be slower since the each
individual conductor can be re-conducted one by one.

(2)

Recommended sections suitable for Cradle Block Method

As a result of the site survey, it is found that this method has to be adopted in the densely populated areas near
Gandul SS, and also at many main roads, express way, railway or other transmission line crossings. This method
will be applied to 36% of the total length of the lines.

(3)

Construction Period

If the re-conductoring is conducted by conventional tension stringing method, paying out of 4 conductors can be
simultaneously carried out. So, the progress of about 8 km/month/circuit per crew is anticipated On the other hand,
if cradle block system is adopted, since this method needs to pay out conductor one by one, the progress of only 4
km/month/circuit per crew can be expected. Either method is selected by the situation along the transmission line.
If four crews are adopted, the construction period excluding a design and product manufacture is estimated to
about 10 months.

1.2.5 Total Project Cost


The total project cost is composed of the construction cost of the transmission lines and substations, the
consulting cost and the administration cost etc. The total project cost is shown in Table 1-1.
1-4

Table 1-1 Total Project Cost


UnitUS$ Mil
Component

Cost

Construction cost of transmission


line

83.60

Construction cost of substation

24.20

Contingency

10.78

Consulting cost

5.39

Administration cost

10.78

Total

134.75

The following items are not included in total Project cost.

EIA implementation cost

Public official approval cost and license acquisition cost

Tax

Price escalation

1.3 Content and Result of Economical Evaluation


In this economic analysis, the "With and Without Principle" is applied, and the case where the proposed project
(re-conductoring of transmission lines and substation remodelling) is implemented (With) and the case where an
alternative plan (new construction of transmission lines and substations) is implemented (Without) are compared.
As shown in Table 1-2 below, EIRR of this project is calculated at 12.58%, and it exceeds 10%, the assumed
discount rate (opportunity cost of capital) of Indonesia, it can be concluded that this project is feasible from an
economic standpoint. And also, the B/C ratio is calculated at 1.028, and it exceeds 1.0. So it can be concluded that
this project is feasible from an economic standpoint.
Sensitivity analysis where the economic cost increases by 5% and where the economic benefit deceases by 5%
are 8.03% and 8.10% respectively.

Table 1-2

Results of Ccost-Effectiveness Evaluation

EIRR (%)

B/C Ratio

B-C (1000 US$)

12.58%

1.028

3,205

1-5

1.4 Content and Result of Financial Evaluation


As shown in Table 1-3, the Financial Internal Rate of Return (FIRR) of this project was calculated at 14.31%, it
is slightly higher than the market interest rate of ordinary commercial banks in the Indonesian financial market
(12.0%), allowing us to conclude that this project is financially feasible.

Table 1-3 Results of Financial Evaluation


FIRR (%)

NPV (US$1000)

14.31%

45,359

Sensitivity analysis where the economic cost increases by 5% and where the economic benefit deceases by 5%
are 13.53% and 13.57% respectively, they are slightly higher than the market interest rate, allowing us to conclude
that this project is financially feasible.

1.5 Comparison between Reconductoring and New Transmission Line


Due to the substaibive power supply in West Java, the existing transmission lines are ecpected to be overloaded.
For the capacity of the steady supply, the increase of the capacity of the transmission is a immideate theme.
Between the proposed reconductoring and the alternative project for a new transmission line, the reconductoring
project is more attractive for various reasons.

The proposed reconductoring project does not require land acquisition or right-of-way access as existing
transmission towers are used.

This reduces the social and environmental impact and allows the project to be completed in a shorter
timeline.

Furthermore, reconductoring does not lead to an increase in O&M costs as the number of equipment and
circuits remain the same.

Since the proposed reconductoring project also requires lower capital investments, the reconductoring
project enables the use of higher quality and more advanced conductor technology.

1.6 Environmental and Social Practicability


In case of this project, the planned increase in the capacity of the transmission lines can be achieved simply by
re-conductoring the transmission line using the existing electric power pylons, therefore resettlement of the
residents will not be necessary in principle..
As for the electric field strength, it is reported that the transmission line conductor with the minimum height of
15 m above the ground has the values a little more than 5 kV/m, and that the actual conductor height above the
ground, 16 m or so, has the electric fiel
d strength of 4.9 kV/m.
The transmission line voltage and the height of the replaced conductors will be the same as those of the existing
line. Therefore the predicted electric field strength will also be same as that in the Previous Report, and be less
than 5 kV/m.
1-6

Corona Noise level and radio noise level would not be much changed after the re-conductoring.
Therefore, there will be no new physical objects to adversely affect the environment.

1.7 Project Implementation Schedule


Taking into consideration the commissioning in 2019, the followings represent the Project schedule from the
conclusion of Japanese Soft Loan Agreement to the operation of the target facilities.

Pre-Construction Period
Selection of Consultant and Conclusion of Consultant Contract

6 months

Preparation of EPC Tender Documents

6 months

Preparation of Bids

3.5 months

Evaluation of Bids, Selection of EPC Contactors, Conclusion of contracts

8 months

Totalincluding duplication

18 months

Construction Period
Re-conductoring of Suralaya Gandul line

17 months

Replacement of substation facilities

18 months

Totalincluding duplication

18 months

Gland Total

36 months

1.8 Advantages of Japanese Enterprises in Technologies


Invar type of conductor, XTACIR/AC, was invented and developed in Japan, and three Japanese manufacturers
have produced the conductor. The extra thermal-resistant aluminum alloy wire (so-called XTAL) requires
manufacturing know-how, which cannot be easily imitated. At present, there seem to be no manufacturers of the
wire in countries other than Japan, and therefore the Japanese manufactures have high possibilities to win the
order.
The replacement works, Cradle Block Method, was developed in Japan, where the conductor erection works
have been frequently conducted in densely populated areas. Therefore Japanese contractors have extensive
experiences and international competitiveness in the method.

1.9 Financing Options for the Project


As part of the Governments effort to resolve key issues hampering the acceleration of infrastructure
development. Committee for the Acceleration of Priority Infrastructure Development (Komite Percepatan
Penyediaan Infrastruktur Prioritas / KPPIP) was established under Presidential Regulation Number 75 of 2014,
dated 17 July 2014, regarding the acceleration of priority infrastructure development..
In the transmission sector, PLN raises financing for transmission lines through various means such as
government loans, domestically syndicated commercial loans and bond issues.
1-7

In a summit meeting held between Mr Shinzo Abe, Prime Minister of Japan and Mr Joko Widodo, President of
the Republic of Indonesia on 23 March 2015 in Japan, both leaders expressed strong commitment to expand
bilateral trade and investment cooperation. In the meeting, both leaders also concurred in launching PROMOSI:
Japan-Indonesia Investment and Export Promotion Initiative. Under the PQI, Japan will streamline the ODA loan
procedures from around 3 years to 1.5 years and also to allow ODA loans to be extended to sub-sovereign entities.
At present, there is no official request for the Japanese ODA Loan in this project. However, together with the
preceding Central West Java transmission line project, which PLN and JICA have been developing and appraising,
it is expected to put in the process as PLN is positively considering to take up this project which further
strengthens power transmission capacity. Application for Japanese ODA Loan will be filed according to the
subsequent process of the request for the Japanese ODA Loan by the Government of Indonesia.

1.10

A Concrete Schedule and a Risk of Realization

New generators connected with the power system cause increase of fault current. Some measure(s) have to be
prepared since the fault current level in Jawa-Bali power system will exceed the existing equipment rating in the
near future by connecting generators including Jawa 5 and Jawa 7. One of measures against the fault current
increase is to upgrade the fault current level from 50 kA to 63 kA. This fault current level upgrading, which takes
many years in general, might have a dampening effect on new power plant constructions.

1.11

Project Implementation Map of West Jawa

The project is to upgrade the transmission capacity by re-conductoring the existing 500 kV transmission lines
with 111 km length from Suralaya Power Plat in Banten province to Gandul substation in West Java province. The
Project implementation map is shown in Figure 1-1.

1-8

Figure 1-1 Project implementation map

1-9

Chapter2. Objective of the Study, Content and Methodology


2.1 Study Objective
There are transmission facilities in Java-Bali region in Indonesia, such as main two routes of 500kV running
from east to west of Java and 150kV covering entire region. However, imbalance of supply and demand in the
grid zone has become more imminent. In other words, 60% of demand is in West Java, where Jakarta City lies,
whereas power generation facilities are almost evenly distributed across east to west (about 900km) in Java. In
such environment, power is transmitted from east to west.
PLN plans substantial power supply in West Java with its policy aiming to reduce pressure against transmission
system and prioritizing power supply closer to the region near the demand centre, Jakarta.
Nevertheless, in West Java, it is difficult to transmit power generated from newly constructed power plants to
Jakarta due to lack of capacity of existing transmission lines. This undermines stable power supply in the future.
In this background, PLN has planned new transmission lines in West Java. But a number of challenges are
anticipated, namely difficult land acquisition due to highly populated area, increase in construction cost, longer
construction period, limited financing and risk allocation.
With such objectives, background and review of the previous study result (Study on Upgrading Transmission
Capacity of Existing 500kV Lines in West Java, Indonesia in March 2008), Indonesian governments plan of new
power generation, transmission and distribution, this study evaluates and proposes feasibility of facilities of
transmission and substation (replacement and new construction) in the following manner.

2.2 Study Contents


A)

Objective of this feasibility study

This assessed feasibility of upgrading of transmission lines, in line with major new power generation
construction plan (Java 5, Java 7 and Lontar etc.) in North West part in Java Island (PLNs power supply
construction general plan / RUPTL 2015-2024). More specifically, we studied 500kV transmission lines including
Suralaya-Gandul line that the previous study focused.

2-1

Banten province, North West of Java Island

Assumption

Construction of respective power plants (including transmission line construction which connects with the
neighboring power system

Upgrading construction of transmission capacity (line replacement) and replacement of equipments of


substations, which are required for connection with respective power plants

However, construction which addresses against increased fault occurrence is outside the scope.

Objective of this
feasibility study

New
power
plants
Transmission line for
grid connection
Existing
lines

transmission
Existing
substatio
ns

Existing transmission lines


This requires capacity increase to
support
New connection of power plants
line replacement
substation replacement

2-2

Existing
transmission
lines
Existing
substatio
ns

B)

Assessment of necessity of equipment upgrade based on power distribution system analysis

In cooperation with PLN, conduct analysis and evaluate necessity of facility upgrading, based on RUPTL
2015-2024.
Analysis of power flow, stability and fault occurrence.

C)

Examination of construction process required

Analysed construction of conductors replacement and substation replacement through the result of the previous
report. Specifically, based on the previous study, collect samples in minimum level in case conducting site visits to
existing power facilities.

D)

Economic, financial analysis and environmental and social assessment

Based on the result of technical evaluation, we conducted, economic and financial analysis and propose
financing measures.
In environment and social aspects, reviewed changes in regulations that have been made since the previous
study.

2.3 Details of study contents


Confirmation of project background
Review RUPTL 2015-2024 by comparing the result of the then RUPTL in the previous study (2008) in
terms of power demand, power supply development, geographical distribution of demand/supply and
transmission upgrading plan.
Review of the power distribution system analysis conducted in the previous study
We reviewed the results of the previous study from the view point of comparing in terms of power
demand, power supply development, geographical distribution of demand/supply and transmission
upgrading plan.
Rationale of equipment expansion based on the power system analysis
We analysed based on PSS/E data. And we interviewed PLN and so on during the field works, and
confirmed whether there were the similar studies which had done or not, and the difference of recognition.
Fault occurrence analysis and identification of counter measures
We analysed based on PSS/E data. And we interviewed PLN and so on during the field works, and
confirmed whether there were the similar studies which had done or not, and the difference of recognition.
Assessment of upgrading the transmission capacity
After reviewing the previous report, evaluated update of existing transmission line conductors size,
ground clearance etc.existing substationsdevices installed etc. and power flow status.
2-3

Economic and financial analysis


We analysed economic and financial feasibility considering the results of the above and the previous
report.
Confirmation of environmental and social issues
We conducted documentary searching and the field works including the interviews to the related
person and ministries.
Evaluation of Japanese companies technical competitiveness and proposition and Outlook of project
financing
We conducted documentary searching and interviewed the Japanese companies, financial institutes,
and related ministries in the partners country such as Ministry of Finance, PLN and P3B JB.

And, our study team was consisted of the below,


Company name
KPMG AZSA LLC

Role
Overall coordination, Implementation coordination, support to
reporting of the study result

TOKYO ELECTRIC POWER


SERVICES CO., LTD.
KPMG ASPAC Infrastructure
Group
*

Power system analysis*, Technical coordination, transmission line


assessment, cost estimation, Substation assessment, cost estimation
Economic and financial analysis, Environment and social
consideration , Outlook of project financing etc,

A part of power system analysis was done by TOKYO ELECTRIC POWER COMPANY, INCORPORATED

2-4

2.4 Implementation Schedule of the Study


The study period is as follows.

August 31, 2015 (contract date) - 29 February 2016

Figure 2-1 shows the schedule of this survey. Also 1st, 2nd and 3rd of the field survey schedule as well as an
outline of the local reporting event are shown in Figure 2-1 and from Table 2-1 to Table 2-4.

Figure 2-1 Implementing Schedule


Sep

Oct

Nov

Dec

Feb

Work in Japan

Work in Japan

The second field work


(Nov 814

Jan

The
third
field
work(Nov1521

Briefing session
(Feb 10)

Submission of
report

2-5

Table 2-1

Outline of the first field work

Date

Contents

Sep 6, 2015 (Sun)

Transfer to Djakarta from Tokyo

Sep 7, 2015(Mon)

Interviews
PT.PLN (Directorate of Finance, Directorate of Planning)
Ministry of Energy and Mineral Resources
PT.PLN(System Planning)

Japanese Embassy interview

Sep 8, 2015(Tue)

Ministry of Finance (Directorate General of Financing and Risk

management,

Directorate of Government Guarantee) interview


Coordinating Ministry of Economic Affairs

interview

P3B-JB interview and Power system analysis


4

Sep 9, 2015(Wed)

Ministry of Environment interview


Ministry of Finance(Fiscal Policy Agency)

interview

PT Indonesia Infrastructure Guarantee Fund

interview

Ministry of National Development Planning

interview

JICA Indonesia

interview

A part of study team return to Japan form Djakarta.


5

Sep 10, 2015(Thu)

P3B-JB (System Planning) Power system analysis


Multfab interview
PLN(Corporate Finance, Foreign Loan and ODA) interview
A part of study team return to Japan or Singapore form Djakarta.

Sep 11,2015(Fri)

P3B-JB (System Planning) Power system analysis


Transfer from Djakarta

Sep 12, 2015(Sat)

Transfer to Tokyo

Table 2-2

The Outline of the Second Field Work

Date

Contents

Nov 8, 2015(Sun)

Transfer from Tokyo to Djakarta

Nov 9, 2015(Mon)

Power system analysis in P3B-JB

-Nov 11,2015(Wed)

Nov 12, 2015(Thu)

Preparation for the wrap-up meeting of the power system analysis


Asia development bank interview

Nov 13, 2015(Fri)

the wrap-up meeting of the power system analysis and the additional study in P3B-JB
Transfer from Djakarta

Nov 14,2015(Sat)

Return to Tokyo

Table 2-3

The outline of the third field work

Date

Contents

Nov 15, 2015(Sun)

Transfer from Tokyo to Djakarta

Nov 16, 2015(Mon)

Kick-off meeting in the P3B-JB office

2-6

the inspection of Gandul substation and transmission line


3

Nov 17, 2015(Tue)

the inspection of Gandul substation and transmission line

Nov 18, 2015(Wed)

the inspection of Balaraja substation and transmission line

Nov 19, 2015(Thu)

the inspection of Suralaya substation and transmission line


PLN (Corporate Finance) interview
JICA interview
KfW interview
PLN(Environment) interview

the wrap-up meeting of the power system analysis and the transmission lines in

Nov 20, 2015(Fri)

P3B-JB
the interviews for the construction companies
In the Indonesia
PLN System Planning interview
Transfer from Djakarta
7

Nov 21, 2015(Sat)

Return to Tokyo

Table 2-4

The outline of the Briefing session

Date

Contents

Feb 9, 2015(Tue)

Transfer from Tokyo to Djakarta

Feb 10, 2015(Wed)

The Briefing session in Workshop*


Transfer from Djakarta

Feb 11, 2015(Thu)

Return to Tokyo

*see (Appendix) Workshop

2-7

Chapter3.

Background of the Study and Review of the Previous


Study

3.1 Outline of the study area


In Indonesia, there are 33 provinces including DKI JAKARTA, DI YOGYAKARTA etc.. This study area is
particularly DKI JAKARTA and BANTEN in Java northwest. After looking the bird's-eye view of the economic
situation in Indonesia, we explain about outline of the Java northwest.

*
Range

of the above table indicates the provinces of Java island and Jakarta Capital Territory State (table above 31.DKI

JAKARTA) and BANTEN (table above 36.BANTEN) are located in the northwestern part of Java Island.

3.1.1 Overall of Indonesian economic situation


According to IMF, after the collapse of Lehman Brothers in 2009, the real GDP growth rate in Indonesia
recovered in 2010, but it has decreased gradually through 2015. Economic growth of Indonesia had been
supported by robust consumer spending and stable exchange rates. The decrease of the real GCP growth rate was
caused from the policy interest rates raised due to increase of the current-account deficit and the expansion of
inflationary pressures.
However, in the IMF's forecast, the growth rate after 2015 will be in the range from 5% to 6%, the stable
economic growth is expected.

Figure 3-1 shows the trends of the real GDP growth rate and its estimate, 2005

2020 by IMF.
3-1

Figure 3-1: Real GDP growth rate


8.0%
7.0%
6.0%
5.0%
4.0%

Gross domestic product,


constant prices

3.0%
2.0%
1.0%
0.0%

(Source: International Monetary Fund, World Economic Outlook Database, October 2015)

Estimated value

Figure 3-2 shows the trends of nominal GDP and the government gross debt. The government gross debt is not
large elongation relative to the growth of nominal GDP. The ratio of government gross debt vs. the GDP decreased
from about 87% in 2000 to about 24% in 2010. Also, in the prediction of 2020 by IMF, the ratio is expected to be
flat.

Figure 3-2GDP at Current Market Prices General and Government Gross Debt, the ratio of
Government Gross Debt vs. GDP (Billion Rupiahs, %)
Rp25,000,000

100%
90%

Rp20,000,000

80%
70%

Rp15,000,000

Rp10,000,000

60%

Gross domestic product, current


prices

50%

General government gross debt

40%
30%

Rp5,000,000

General government gross debt


(Percent of GDP)

20%
10%

Rp0

0%
2000

2005

2010

2015*

2020*

(Source: International Monetary Fund, World Economic Outlook Database, October 2015)

Estimated value

Also, from the transition of the fiscal balance, the total amount of government revenue and the total of
government expenditure have been increasing year after year. The fiscal balance has become some of the negative
in recent years.

3-2

Figure 3-3General Government Revenue, General Government Expenditure and General government
primary net lending/borrowing (Billion Rupiahs)
Rp4,000,000
Rp3,500,000
Rp3,000,000
Rp2,500,000
General government revenue

Rp2,000,000
Rp1,500,000

General government total


expenditure

Rp1,000,000

General government net


lending/borrowing

Rp500,000
Rp0
(Rp500,000)
(Rp1,000,000)
2000

2005

2010

2015*

2020*

(Source: International Monetary Fund, World Economic Outlook Database, October 2015)

Estimated value

In addition, as a feature of Indonesia's fiscal spending, a percentage of the financial expenditure of government
energy subsidies is as large as about 30%. Though this energy subsidy is devoted to compensation of the fuel and
electricity prices, the Indonesian government is committed to the subsidy reform and efforts to reduce it.

3.1.2 The economic situation of Java northwestern area


Population in Java is approximately 140 million people in the estimate of fiscal 2015, it has accounted for about
57 percent of the entire Indonesia. And the population of both DKI Jakarta and BANTEN province located in Java
northwest is approximately 15% of the population in Java in total. According to the IMF forecast, while a large
increase in the West Java Province is expected, the populations in DKI Jakarta and BANTEN province are going
to gradually increase.

3-3

Figure 3-4Population of Indonesia by Province 2000-2035 (Thousand)


60,000
50,000
40,000

Banten
DKI Jakarta
Jawa Barat

30,000

Jawa Tengah
DI Yogyakarta

20,000

Jawa Timur

10,000
2000

2010

(Source: BPS STATISTIK INDONESIA)

2015*

2020*

2025*

2030*

2035*

Estimated value

In addition, the total of real GDP in Java occupies about 60% of it in Indonesia entire. The trends of the GDP
growth rate in Java have been similar to the movement of the rate of the entire Indonesia, it has achieved strong
economic growth at about 5-6%. Total of both DKI Jakarta and BANTEN province has become a about less than
40%. Absolute figures of GDP become larger in the order of DKI Jakarta, Jawa Timur (East Java) and Jawa
Barathas (West Java).
Figure 3-5Gross Regional Domestic Product at 2000 Constant Market Prices by Provinces in Java Island,
2000 - 2013 (Billion Rupiahs)
Rp1,800,000

7.0%
Jawa Timur

Rp1,600,000

6.0%

Rp1,400,000

DI Yogyakarta

5.0%

Jawa Tengah

Rp1,000,000

4.0%

Jawa Barat

Rp800,000

3.0%

Rp1,200,000

DKI Jakarta
Banten

Rp600,000

2.0%

Rp400,000
1.0%

Rp200,000
Rp-

0.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(Source: BPS STATISTIK INDONESIA)

3-4

GDP growth rate


Java Island

3.2 Demand
3.2.1 Demand record
The power system on the Java Island of Indonesia is connected with the one of Bali Island, and is integrally
operated as Jawa-Bali power system. The maximum power demand of Jawa-Bali power system in 2014 was
33,321MW, which was equivalent to 72 % of the entire power demand in Indonesia including Sumatra Island and
others. Electricity sales of 2014 in the power system were approximately 150TWhs, which were equivalent to
18% of the total electricity sales of nine utilities in Japan. Table 3-1 shows electricity sales records by region in
Jawa-Bali power system

Table 3-1 Electricity sales records by region in Jawa-Bali power system


Unit: TWh per Year
Average
Region

2009

2010

2011

2012

2013

2014

from 2009 to
2014

Jawa-Bali
Growth rate
Sumatera
Growth rate
Kalimantan
Growth rate
Sulawesi
Growth rate
Maluku,

Papua

&

Nusa

Tenggara
Growth rate
Indonesia
Growth rate

104.1

113.4

120.8

132.1

142.1

149.9

3.3

8.9

6.5

9.3

7.6

5.5

17.6

19.7

21.5

24.2

25.8

27.9

7.2

11.6

9.3

12.6

6.4

8.2

4.7

5.1

5.7

6.4

7.8

9.7

10.3

10.1

12.9

9.6

11.8

4.6

5.1

5.6

6.4

7.3

7.8

8.8

10.7

11

13.7

13.3

7.7

2.2

2.4

2.7

3.1

3.6

4.0

9.7

10.7

13

16.1

13.8

11.4

133.1

145.7

156.3

172.2

185.7

197.3

4.3

9.4

7.3

10.2

7.8

6.3

7.1

9.4

10.5

11.5

12.7

7.8

*) Estimated value
(Source: RUPTL 2015-2024)

The electricity sale growth has been decreasing since 2013. Especially Jawa-Bali system was the worst among
all Indonesia. This was due to the slowdown in the Indonesian economy and electricity tariff raises.

3.2.2 Demand forecast

Figure 3-6 compares some demand forecasts. Minister of Energy and Mineral Resource (MEMR) issued the
General National Power Plan, (RUKN), which was the comprehensive power development plan based on the
national energy policies, then PLN developed the RUPTL in accordance with the RUKN.
3-5

Figure 3-6 Comparison of demand forecasts

(Source: RUPTL 2015-2024)

The latest RUPTL 2015-2024 revised the demand forecast downward since 2019 from the Draft RUKN
2015-2034.
The demand forecast in the previous report conducted in 2008 was in accordance with the RUPTL 2007. Figure
3-7 compares the demand forecast of Jawa-Bali power system in the RUPTL 2007 and the demand record of the
same power system. There was little difference in the demand with the previous report. Figure 3-7 also shows
demand forecast of Jawa-Bali power system based on the RUPTL 2015-2024.

Figure 3-7 Comparison of the demand forecast with the previous study

(Source: Created by the survey team in accordance with RUPTL 2015-2024 and RUPTL 2007)

3-6

3.2.3 Power generation development plan


Table 3-2 shows the demand forecast and generation development plans of the total Jawa-Bali power system in
the RUPTL 2015-2024. There was enough generation reserve margin till 2024 this RUPTL.

Table 3-2 Demand forecast and generation development plans of the total Jawa-Bali power system in
RUPTL 2015-2024
Unit: MW
Total

available

power
Demand
Demand

and

Supply Balance
Reserve Margin

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

32,757

34,738

37,426

42,172

54,024

55,172

57,306

59,463

62,767

65,550

25,875

27,840

29,993

32,213

34,578

37,103

39,960

43,031

46,376

49,934

6,882

6,898

7,433

9,959

19,446

18,069

17,346

16,432

16,391

15,616

27%

25%

25%

31%

56%

49%

43%

38%

35%

31%

(Source: RUPTL 2015-2024)

Specific generation development plans are listed in Table 3-3.

3-7

Table 3-3 Generation development plan in the Jawa-Bali power system


Project

Type

2015

2016

2017

2018

2019

2020

2021

600

2022

2023

2024

Pembangkit PLN on Going and Committed


Tj. Awar-awar (FTP1)

PLTU

Adipala (FTP1)

PLTU

350

660

Indramayu #4 (FTP2 )

PLTU

1,000

Upper Cisokan PS (FTP2)

PLTA 2

1,040

Peaker Pesanggaran

PLTMG3

200

Sub Total PLN on Going & Committed

860

350

1,915

Pembangkit IPP on Going and Committed


Celukan Bawang

PLTU

Banten

PLTU

Sumsel-8 MT

PLTU

Sumsel-9 MT (PPP)

PLTU

600

Sumsel-10 MT (PPP)

PLTU

600

Cilacap exp

PLTU

Jawa Tengah (PPP)

PLTU

Rajamandala

PLTA

Patuha (FTP2)

PLTP4

Kamojang-5 (FTP2)

PLTP

380
625
1,200

614
1,900
47
110
30

Karaha Bodas (FTP2)

PLTP

Tangkuban Perahu 1 (FTP2)

PLTP

30

110

Ijen (FTP2)

PLTP

Iyang Argopuro (FTP2)

PLTP

Wilis/Ngebel (FTP2)

PLTP

55

55

55
110
55

Cibuni (FTP2)

PLTP

10

Tangkuban Perahu 2 (FTP2)

PLTP

60

Cisolok - Cisukarame (FTP2)

PLTP

Ungaran (FTP2)

PLTP

Wayang Windu 3-4 (FTP2)

PLTP

Dieng (FTP2)

PLTP

Tampomas (FTP2)

PLTP

110

50
55
220
55

55
45

Baturaden (FTP2)

PLTP

110

Guci (FTP2)

PLTP

55

110

Rawa Dano (FTP2)

PLTP

Umbul Telomoyo (FTP2)

PLTP

110
55

Gn. Ciremai (FTP2)

PLTP

110

Gn. Endut (FTP2)

PLTP

40

Sub Total IPP On Going & Committed

1,024

655

47

1,770

3,575

1,040

205

110

450

450

Rencana Tambahan Kapasitas


Jawa-1 (Load Follower )

PLTGU5

1,600

Jawa-2 (Load Follower )

PLTGU

800

Jawa-3 (Load Follower )

PLTGU

Muara Tawar Add-on Blok 2,3,4

PLTGU

Grati Add-on Blok 2

PLTGU

Peaker Muara Karang

PLTGU

Peaker Grati

PLTGU

150
500
300

Peaker Jawa - Bali 1

PLTGU/ MG

Peaker Jawa - Bali 2

PLTGU/ MG

Peaker Jawa - Bali 3

PLTGU/ MG

Peaker Jawa - Bali 4

PLTGU/ MG

Karangkates #4-5

PLTA

Kesamben

PLTA

Jatigede (FTP2)

PLTA
PLTA

Indramayu #5

PLTU

Lontar Exp #4

PLTU

Jawa-1 (FTP2)

PLTU

Jawa-3 (FTP2)

PLTU

Jawa-4 (FTP2)

PLTU

150
400

Matenggeng PS

Jawa-5 (FTP2)

1.
2.
3.
4.
5.
6.
7.

800
650

500
500
300

150
100
37
110
1,000
315
1,000
660

660

2,000

PLTU

2,000

Jawa-6 (FTP2)

PLTU

Jawa-7

PLTU

2,000

Jawa-8

PLTU

1,000

Jawa-9

PLTU

600

Jawa-10

PLTU

Jawa-11

PLTU

Jawa-12

PLTU

Jawa-13

PLTU

Bedugul

PLTP

2,000

660
600
1,000

1,000
2,000

10

Total additional rated power

MW

1,884

1,755

2,897

5,115

13,005

2,162

2,300

2,325

3,560

3,000

Total rated power of generators

MW

35,304

37,439

40,336

45,451

58,224

59,461

61,761

64,086

67,646

70,646

Total net power of power plants

MW

32,757

34,738

37,426

42,172

54,024

55,172

57,306

59,463

62,767

65,550

PLTU : Steam Power Plant


PLTA : Hydro Power Plant
PLTMG : Gas Engine Power Plant
PLTP : Geothermal Power Plant
PLTGU : Combined Cycle Power Plant, which is high efficiency multi generators system mainly fueled by gas.
PLTGU/ MG : PLTGU or PLTMG
FTP2 : Fast Track Program II; Pursuant to President Regulation No.4/2010, PLN was assigned to build coal-fired steam power plants with a total capacity of 10,000 MW.

(Source: RUPTL 2015-2024)

3-8

3.2.4 Transmission line projects in RUPTL 2015-2024


The following tables list transmission line projects in Jawa-Bali power system in RUPTL 2015-2024.

Table 3-4 Transmission line projects in the Special Capital Region of Jakarta
From

To

Voltage

Conductor type

Bekasi

Tx. Mtawar-Cibinong

500 kV

2 cct, 4xDove 1

12 2016

Cawang Baru (GIS)

Gandul

500 kV

2 cct, 4xZebra

40 2017

Kembangan

Durikosambi (GIS)

500 kV

1 cct, 4xZebra

6 2017

Tx

Durikosambi (GIS)

500 kV

1 cct, 4xZebra

6 2017

Priok

Muaratawar

500 kV

2 cct, 1xCU2500

30 2018

Priok

Muarakarang (GIS)

500 kV

2 cct, 1xCU2500

20 2018

Muarakarang (GIS)

Durikosambi (GIS)

500 kV

2 cct, 4xZebra

30 2018

PLTU Jawa-5

Balaraja

500 kV

2 cct, 4xZebra

60 2021

Kembangan

Length(km)

Total

COD

204

(Source: RUPTL 2015-2024)

Table 3-5 Transmission line projects in Banten province


From

To

Voltage

Conductor type

length(km)

Bojanegara

Balaraja Baru

500 kV

2 cct. 4xDove

120

2015

Suralaya Baru

Bojanegara

500 kV

2 cct. 4xDove

32

2015

PLTU Banten

Inc 2.(Suralaya Baru- Balaraja)

500 kV

2 cct. HTLSC (4xDove)

40

2016

Lengkong 500 kV

Inc. (Blrja-Gndul)

500 kV

4 cct. 4xDove

2017

Balaraja

Kembangan

500 kV

1 cct. 4xZebra

80

2017

220

2019

60

2019

COD

Bogor X

Tpcut

500 kV DC

2 pole. HVDC OHL

Bogor X

Inc (Clgon-Cibinong)

500 kV

2 cct. 4xDove

Bogor X

Inc (Depok-Tsmya)

500 kV

4 cct. 4xDove

2019

Tpcut

Keteranganapang

500 kV DC

2 pole. HVDC CABLE

80

2019

PLTU Jawa-7

Inc(Suralaya Baru - Balaraja)

500 kV

4 cct. HTLSC (4xDove)

20

2019

Bojanegara

Balaraja Baru

500 kV

2 cct. HTLSC (4xDove)

120

2019

Suralaya Baru

Bojanegara

500 kV

2 cct. HTLSC (4xDove)

32

2019

Balaraja

Gandul

500 kV

2 cct. HTLSC (4xDove)

92

2019

Suralaya Lama

Balaraja

500 kV

2 cct. HTLSC (4xDove)

129

2020

Total

1,035

(Source: RUPTL 2015-2024)

As the abouve Table 3-5, reconductoing the Balaraja-Gandul transmission line is planed in 2019 and
reconducting Suralaya (Lama) -Balaraja transmission line is planned in 2020.

1
2
3

4xDove: Four bundle conductor: Dove is a code word of an ACSR


Inc: the transmission line for interconnection substation or power plant which will be built between the existing transmission lines
OHL: Overhead Line

3-9

Table 3-6 Transmission line projects in West Jawa province


From

To

Voltage

Conductor type

Tambun 500 kV

Inc. (Bkasi-Cibinong)

500 kV

2 cct, 4xDove

2016

Bandung Selatan

Inc. (Tasik-Depok)

500 kV

2 cct, 4xGannet

2016

Delta Mas

Inc. (Cbatu-Cirata)

500 kV

4 cct, 4xGannet

2017

Cikalong

Dbphi. (Tasik-Depok)

500 kV

4 cct, 4xGannet

2017

Cibatu Baru

Inc (Muaratawar-Cibatu)

500 kV

4 cct, 4xGannet

20

2018

PLTGU Jawa-1

Cibatu Baru

500 kV

2 cct, 4xZebra

80

2018

Mandirancan

Bandung Selatan

500 kV

2 cct, 4xZebra

118

2019

Upper

Cisokan

length(km)

COD

Incomer (Cibng-Sglng)

500 kV

2 cct, 4xGannet

30

2019

PLTU Jawa-1

Mandirancan

500 kV

2 cct, 4xZebra

116

2019

Indramayu

Delta Mas

500 kV

2 cct, 4xZebra

260

2019

Suralaya Lama

Suralaya Baru

500 kV

1 cct, 4xZebra

2019

PLTU Jawa-3

Switching S/S Jawa-3 Inc

500 kV

4 cct, 4xZebra

40

2021

Matenggeng PLTA

Inc (Tasik-Rawalo)

500 kV

2 cct, 4xDove

20

2022

Total

704

(Source: RUPTL 2015-2024)

Table 3-7 Transmission line projects in Central Jawa province


From

To

Voltage

Conductor type

length(km)

Rawalo/Kesugihan

Dbphi (Pedan-Tasik)

500 kV

4 cct, 4xGannet

2015

Rawalo/Kesugihan

PLTU Adipala

500 kV

2 cct, 4xZebra

28

2015

PLTU Cilacap Exp

Adipala

500 kV

2 cct, 4xDove

10

2015

Tanjung Jati B

Tx Ungaran

500 kV

2 cct, 4xZebra

260

2016

Ampel

Inc (Ungaran-Pedan)

500 kV

2 cct, 4xGannet

2017

PLTU Jateng

Pemalang 500 kV

500 kV

2 cct, 4xZebra

40

2019

PLTU Jawa-12 (KBN)

Inc (Muaratawar - Priok)

500 kV

2 cct, 1xCU2500

10

2019

Tx Ungaran

Pemalang

500 kV

2 cct, 4xZebra

63

2020

Pemalang

Indramayu

500 kV

2 cct, 4xZebra

256

2020

Ungaran

Pedan

500 kV

1 cct, 4xZebra

60

2020

Total

COD

733

(Source: RUPTL 2015-2024)

Table 3-8 Transmission line projects in East Jawa province


From

To

Voltage

Conductor type

Surabaya Selatan

Grati

500 kV

2 cct, 4xGannet

Bangil

Inc. (Paiton-Kediri)

500 kV

2 cct, 4xGannet

Paiton

Watu Dodol

500 kV

2 cct, 4xZebra

Watu Dodol

Segararupek

500 kV

Tandes

Gresik

500 kV

Total

length(km)

COD
160

2015

2017

262

2018

2 cct, ACS 380

2018

2 cct, 4xZebra

24

2018

458

(Source: RUPTL 2015-2024)

3-10

Table 3-9 Transmission line projects in Bali province


From

To

Voltage

Conductor type

length(km)

Gilimanuk

Antosari

500 kV

2 cct, ACSR 4xZebra

185

2018

Segararupec

Gilimanuk

500 kV

2 cct, ACSR 4xZebra

20

2018

Total

COD

205

(Source: RUPTL 2015-2024)

3.3 Review of the previous report


3.3.1 Necessity study in the previous report in 2008
The previous study Study on Upgrading Transmission Capacity of Existing 500kV Lines in West Java,
Indonesia was carried out in fiscal year 2007 by Tokyo Electric Power Services Co., Ltd (TEPSCO) and
Mitsubishi Corporation. Essential conditions such as the total demand forecast, generation expansion plans and
transmission equipment augmentation plans were based on the RUPTL 2007 for the system analyses, while
demand at each substation and output power from each generator were revised from this RUPTL as the latest
information at that time.

Generation expansion plan in the western region of Java-Bali power system in the RUPTL 2007

The table below shows existing and planned generator capacities in the RUPTL 2007.

Table 3-10 Power development projects in the west Java area


UnitMW
Site
Suralaya

Existing

2008

2009

2010

2011

2012 -16

Capacity at the end


of 2016

3,400

600

4,000

740

740

Teluk Naga

300

600

900

Anyner

300

300

Labuan

600

600

4,140

900

1200

300

6,540

Cilegon

Total
(Source: RUPTL 2007)

The figure below illustrates locations of planned generators noted in the above table.

3-11

Figure 3-8 Locations of new generators planned in the RUPTL 2007

(Source: RUPTL 2007)

Target years for system analyses

As shown in the table above, large scale power development projects were expected to be completed during
2009 and 2010. Thus, system analyses were conducted under the conditions including demand and generation
expansions in 2010 and 2016, which was the time horizon year in the RUPTL 2007.

Revised system configuration in 2016

On the basis of the latest generator connection plans as of then, system analyses were conducted under the
conditions of the revised connection of a new power plant (Bojonegara) as illustrate below.

3-12

Figure 3-9 Revised connection of a new power plant at Bojonegara


Legend
Connection plan in the RUPTL 2007
Revised connection plan
Muara Tawar

Cawang

Kembangan
Bekasi
Bojonegara
Suralaya

Cibinong

Balaraja

Gandul
Depok

Cilegon

(Source: Created by the survey team from Study on Upgrading Transmission Capacity of Existing 500kV Lines in West Java,
Indonesia, 2007, JICA)

Results of power flow analyses

The figure below illustrates power flow diagram in 2010.

A Number in black letter with an arrow means

power flow under the normal (N-0) condition without any outage. Regarding the transmission line between
Suralaya and Balaraja, 2,586MW in black means the total power flow of two circuits under the normal (N-0)
condition without any outage. 2,332MW in red means power flow though the healthy circuit under the N-1
condition with the same section outage. Since load-carrying capacity of the existing transmission line is 1,628MW,
healthy circuit of SuralayaBalaraja transmission line would be overloaded under the N-1 conditions with one
circuit outage of the same transmission line as expressed in the inequality below.
2,332MW>1,628MW
Regarding the transmission line between Balaraja and Gandul, 1,505MW in blue means power flow though the
healthy circuit under the N-1 condition with the same section outage. Healthy circuit of Balaraja-Gandul
transmission line would not be overloaded under the N-1 conditions with one circuit outage of the same
transmission line as expressed in the inequality below.
1505MW<1,628MW

3-13

Figure 3-10 Power flow in West Java Network (2010)


N-Suralaya
139

560

Suralaya
98

Cibinong

Balaraja

880

759
115

661

699

3180

Unit (MW)

319

Transmitting Cap.
(1980A)
1628MW (PF0.95)

421

Kembangan

319

1873 Gandul
(1505)

2586
(2332)

473

917

( ):Contingency of 1circuit
Red : Suralaya-Balaraja
Blue : Balaraja-Gandul

Depok

-219
1135
(1389)
(1398)

Cilegon

Transmitting Cap.
(2472A)
2033MW (PF0.95)

(Source: Study on Upgrading Transmission Capacity of Existing 500kV Lines in West Java, Indonesia, 2007, JICA)

1,654MW in blue means power flow though the healthy circuit between Balaraja and Gandul under the N-1
condition with the same section outage. Healthy circuit of Balaraja-Gandul transmission line would be overloaded
under the N-1 conditions with one circuit outage of the same transmission line as expressed in the inequality
below.
1,654MW>1,628MW

Figure 3-11 Power flow in West Java Network (2016)


N-Suralaya
226

Suralaya
160

529

550

324

Kembangan

Bojonegara
685

2250

Unit (MW)
530

1565

Balaraja 858
901

2387
1459

244

1064

1014

1254
448 Gandul
(1654) 534

Depok 565
( ):contingency of Lengkong
Balaraja-Gandul
1877

1777

Cilegon

1995

DC

354
1420

Parung
3000

539

(Source: Study on Upgrading Transmission Capacity of Existing 500kV Lines in West Java, Indonesia, 2007,

Construction year

It would take about one and half year to reconductor the transmission line. During the relatively long
reconductoring period, generator output would have to be suppressed to some extent at Suralaya power plant.
Considering the supply demand balance in Java-Bali power system, the previous report recommended that the
reconductoring start from 2010, when supply power was expected to be more sufficient than previous years.

3-14

Power flow analyses during the reconductoring work

Suralaya-Balaraja transmission line would be overloaded during the reconductoring work under the same
conditions noted above. To prevent from this overloading, output from Suralaya power plant had to be suppressed
by 1,200MW (from 3,740MW to 2,540MW) in the power flow analyses.

Stability analyses

Stability analyses were conducted under the conditions in 2010 during the reconductoring work. The system was
stable even under these very severe conditions.

Conclusion of the previous report

From the power flow and stability analysis results shown above, the previous report concluded that the
transmission lines between Suralaya and Gandul needed to be reconductored.

Review of the previous report with regard to the system analyses

Suralaya-Balaraja transmission line was expected to be overloaded due to connections of new generators
listed in Table 3-10. Reconductoring of this transmission line should have been implemented earlier than the
connections of those new generators in an ordinary manner. From the results of power flow analyses,
Suralaya coal fueled power plant including a new generator would be forced to suppress its output power
during the reconductoring work. It was unusual for the just expanded power plant to be forced to suppress its
output in general. This previous report recommended this reconductoring be started the implementation in
2010 because additional supply power was expected to be sufficient as of then owing to the Crash
Program.
However, this program did not work well as expected due to the shortage of fund and poor performance of
the coal power plants mainly provided by Chinese manufacturers. The survey team considers in this study
that that situation can be said rather accidental under the circumstance that the transmission lines should have
been upgraded if the new plant started its operation on planned schedule.
Taking those into consideration, the proposal by the former survey team at the previous report in 2008, the
year before the financial service firm Lehman Brothers was filed for Chapter 11 bankruptcy protection,
which recommended the reconductoring of the existing transmission line rather than time-consuming
construction of a new transmission line, was deemed to be proper recommendation under the economic
situation with very tight gap between supply and demand in electricity in the country at the time.

3-15

Chapter4. System Analysis


4.1 Conducted survey
Before the connection of new generators with the power grid or when the augmentation necessity of
transmission facilities is confirmed, the transmission system reliability has to be analyzed. If any problems are
expected to occur through power flow, fault current, and stability analyses, some measures have to be prepared.
System analyses conducted by the Study Team include the following.

Power flow analysis

Fault current analysis

Stability analysis

4.2 Analysis condition


4.2.1 Target year
Table 4-1 lists generation expansion plans which affect loading condition of the transmission line between
Suralaya power plant and Gandul substation.

Table 4-1 Generation expansion plan which affect the loading condition of the transmission line between
Suralaya(Lama) power plant and Gandul substation
Power plant

Connecting point

Rate output power

COD

Banten #1

Banten S/S

660MW

2017

Jawa-9

Banten S/S

600MW

2019

Jawa-5

Tanara S/S

1000MW

2019

1000MW

2020

Jawa-7

Bojonegara S/S

1000MW

2019

1000MW

2020

(Source: Information from P3B-JB)

The following Figure 4-1 illustrates the connecting points of the new generators listed in Table 4-1. From those
connecting points and the year of the connection, the survey team assumed that the second unit of Jawa-5 and the
second unit of Jawa-7 would be a trigger to cause heavy loading of the Suralaya-Gandul transmission line. Thus,
the survey team deemed that this study should be conducted under the conditions in 2020 as the target year.

4-1

Figure 4-1 Generation expansion plan in the north western region of Jawa-Bali grid

(Source: Information from P3B-JB)

4-2

4.2.2 Latest transmission augmentation plans in the northwestern region of Jawa-Bali


system
The latest information of transmission augmentation plans in the Special Capital Region of Jakarta and in
Banten province was provided by PLN.

Table 4-2 Transmission line projects in the Special Capital Region of Jakarta
From

To

Voltage

Conductor type

Length (km)

COD

12

2016

Bekasi

Tx. Muara Tawar-Cibinong

500kV

2 cct, ACSR 4xDove

Kembangan

Durikosambi (GIS)

500kV

2 cct, ACSR 4xZebra

2018

Muarakarang (GIS)

Durikosambi (GIS)

500kV

2 cct, ACSR 4xZebra

30

2018

Priok

Muara Tawar

500kV

2 cct, ACSR 4xZebra

30

2019

Priok

Muarakarang (GIS)

500kV

2 cct, ACSR 4xZebra

20

2019

Cawang Baru (GIS)

Gandul

500kV

2 cct, ACSR 4xZebra

40

2020

Total

138

(Source: Information from P3B-JB)

Table 4-3 Transmission line projects in Banten province


From
Bojanegara

To
Balaraja Baru
5

Voltage

Conductor type

500 kV

2 cct, ACSR 4xDove

Length (km)

COD

120

2016

PLTU Banten

Inc. (Suralaya Baru-Balaraja)

500 kV

2 cct, HTLSC (Existing

40

2016

Suralaya Baru

Bojanegara

500 kV

2 cct, ACSR 4xDove

32

2016

Balaraja

Kembangan

500 kV

2 cct, ACSR 4xZebra

80

2017

Lengkong

Inc. (Balaraja-Gandul)

500 kV

4 cct, HTLSC (Existing

2017

Suralaya(Lama)

Suralaya Baru

500 kV

1 cct, ACSR 4xZebra

2018

Bogor X

Inc. (Depok-Tasikmalaya)

500 kV

4 cct, ACSR 4xDove

2019

Bogor X

Inc. (Cilegon-Cibinong)

500 kV

2 cct, ACSR 4xDove

60

2019

220

2019

Bogor X

Tanjung Pucut / Salira

500kV DC

2 cct, 2 pole, HVDC OHL

Bojanegara

Balaraja Baru

500 kV

2 cct, HTLSC (Existing

120

2019

PLTU Jawa-7

Inc.(Suralaya Baru-Balaraja)

500 kV

4 cct, HTLSC (Existing

20

2019

Suralaya(Lama)

Balaraja

500 kV

2 cct, HTLSC (Existing

129

2019

Tanjung Pucut / Salir

Kaetapang

500kV DC

2 cct, HVDC CABLE

80

2019

Balaraja

Gandul

500 kV

2 cct, HTLSC (Existing

92

2020

Suralaya Baru

Bojanegara

500 kV

2 cct, HTLSC (Existing

32

2020

Total

1,040

(Source: Information from P3B-JB)

As listed in Table 4-3, PLN has plans to reconductor the transmission lines between Suralaya (Lama) and
Balaraja in 2019 and between Balaraja and Gandul in 2020. Those projects might be changed in the next RUPRL
4

4xDove: Four bundle conductor: Dove is a code word of an ACSR


Inc.: the transmission line for interconnection substation or power plant which will be built between the existing transmission
lines
6
OHL: Overhead Line
5

4-3

2016-2025, which will be released soon, the Study Team conducted system analyses under these transmission line
augmentation conditions as the latest ones.

Figure 4-2, Figure 4-3, and Figure 4-4 illustrate transmission augmentation and relevant generation expansion
plans with their CODs.

Figure 4-2 Latest generation expansion and transmission augmentation plans during 2016-2018

(Source: Created by the survey team from information provided by P3B-JB)

4-4

Figure 4-3 Latest generation expansion and transmission augmentation plans in 2019

(Source: Created by the survey team from information provided by P3B-JB)

4-5

Figure 4-4 Latest generation expansion and transmission augmentation plans in 2020

Suralaya Baru

Suralaya (Lama)

Banten
Banten-1 (660MW), 2017
Jawa-9 (600MW), 2019

Reconductoring
Suralaya Baru Bojonegara, 32km,

Bojonegara
Jawa - 7
1000MW, 2019
1000MW, 2020

Balaraja
Kembangan

Reconductoring
Balaraja - Gandul,
129km

Jawa - 5
1000MW, 2019
1000MW, 2020

Lengkongl
Gandul

(Source: Created by the survey team from information provided by P3B-JB)

4-6

4.2.3 Demand assumptions


Jawa-Bali power system can be divided into five demand areas from area I to area V as shown in Figure 4-5.

Figure 4-5 Demand areas of five in Jawa-Bali grid


VI

(Source: RUPTL 2015 and information from P3B-JB)

From the interview with P3B-JB, the recorded peak demand during the daytime had been growing year after
year more than the recorded peak demand during the nighttime in all five demand areas in Jawa-Bali power
system, and P3B-JB projected this trend would continue in future. The peak demand of the area-I during the
daytime was already higher than the peak demand during the nighttime in the said area as of year 2015. According
to P3B-JB, this maximum demand time shift from night to day would occur during 2019 and 2020 in the whole
Jawa-Bali power system.
In general, transmission lines in the generation rich area do not necessarily tend to be heavily loaded under the
maximum demand condition. If generated power from power plants is large in the area-I and demand of the said
area is small, the evacuated power will cause Suralaya(Lama)-Gandul transmission line to be heavily loaded.
Evacuated power from Suralaya Baru and Lama power stations to Gandul substation was larger in the night
peak time than the day peak time since the demand in the night peak time was smaller than the one in the day peak
time. Thus, the survey team assumed that analyses would be conducted under the conditions of night peak demand
in 2020 as a conservative condition.

4.2.4 Loading conditions of generators


The power grid, which consists of transmission lines, transformers, etc., should be constructed so as not to
restrict power plant operations.

The survey team assumed that generators in the northwestern region (Area I) of

Jawa-Bali power system generated at the rated power as a conservative viewpoint. Other generators were assumed
to generate at about 45% of the rated power to balance the supply and demand in the whole Jawa-Bali power
system as shown in Figure 4-6.

4-7

Figure 4-6 Loading conditions of generators in Jawa-Bali power system


SLAYA2
SLAYA

PLTU BANTEN
SLIRA
GU 1x660

MTSUI
IDFERO
ASAHI
CNDRA
ASRI
ASAHI II/
CNGKA

CLGN 2

PLTGU JAWA-1
2 x 800 MW

HVDC
PLTU 2x1.000 MW

CLGON

PRYMA

ASAHI
III

MW

PRETY

PENI

CLGMA

POSCO
TLNGA

TOJNG/
S RANG III

KSTEL SMTR
KIEC

SPTAN

IDKIAT

SRANG

NKOMAS

RWDNO
P

PCADM

CLGON
MILENIUM
SPINMIL

CKUPA

KOPO

LEGOK

GORDA
MENES

SMTRCKNDE

RKBTG
SKETI

GNENDUT

CITRA

TGRSA

KMBNG

PTKNG
BNTRO

IDMYU7

CWANG

LKONG

TMBUN

GNDUL

BSD/
LKONGIII

DPK2

SRPNG
P

CIBNG

CMGISII
ITP
SENTUL

DEPOK
BOGOR X

PLTU LBUAN
BUNAR II BUNAR

CBTBR

CWANG2

CMGIS
U

MTWAR

BKASI

ALMSUTRA

LAUTSTEL

CILEDUG

CURUG

PCADM II

SRANG II

TGRNG
SOETTA

BLRJ A

NBLRJA

PRIOK
MKRNG

DUKSMBI

J TAKE

PKMIS

CKNDE

PLTU LONTAR
U
NTGRNG
CKRNG

CBATU

SCBNG

KDBDK

TJLSNG

BGBRU
BGRKT
KRCAK CIOMAS
SALAK LAMA
MPING

SALAK BARU

CRATA

TAJUR

SGLNG

CIAWI II
CIAWI
CBDKBRII/
CCRUG

CIPANAS

PRATU

BAYAH/CEMINDO
U

SMNJWA

RJMDLA

UBRUG
LBSTU

TSMYA

PLTU PRATU
P

CGRLG

CNJUR

CBDKBR

CSLOK
CSKRME

LEGENDA :
GITET 500 KV EKSISTING
GITET 500 KV BARU
GI 150 KV EKSISTING

PRATU/JMPGKULON

GI 150 KV BARU
GI 150 KV BARU TERKAIT KTT

SURADE

GI 70 KV EKSISTING

Region where generators generated at the rated


power

TNGGEUNG

Region where generators generated at 45% of the rated power

(Source: RUPTL 2015 and information from P3B-JB)

Table 4-4 summarizes the supply demand balance in Jawa-Bali power system for the system analyses as
reference.

4-8

Table 4-4 Supplydemand balance in Jawa-Bali power system for system analyses7
Adjusted power from
generators
Region

(MW), (A)

Demand

Balance (MW),

(MW), (B)

(A) - (B)

RJKB

15,045.6

14,413.0

632.6

II

RJBR

8,030.4

7,309.0

721.4

III

RJTD

5,343.5

4,896.9

446.6

IV

RJTB

4,778.3

6,847.0

-2,068.7

SRB

750.0

1,116.0

-366.0

VI

SMRT

1,230.2

0.0

1,230.2

35,178.0

34,581.9

596.1

TOTALS

(Source: Result of PSS/E power flow analysis provided by P3B-JB)

4.2.5 Allowable voltage range


According to the connection code of P3B, allowable voltage range in 500 kV system is 5% under the normal
(N-0) conditions. Although the connection code did not give a voltage range under N-1 conditions, the survey
team assumed the same range as N-0 conditions for N-1 conditions on a conservative standpoint.

4.2.6 Transmission line capacity


Transmission line capacity was given as the apparent power 8 for the power system planning in P3B-JB.
Overloading 9 of transmission lines were not allowed under N-0 and N-1 conditions for the power system
planning in P3B-JB.

4.2.7 Other conditions for the system analyses


On the basis of the agreement on the conditions for the system analyses with P3B-JB on Nov. 10 during the
second mission, a new 500 kV/150 kV substation which was not listed in the latest RUPTL 2015 -2024 was
assumed to start the operation from 2019. According to B3B-JB, the new substation would be constructed as a
measure against the heavy-loading of Balaraja and Kembangan substations. However, the location of this new
substation had not been decided yet as of then.

Difference between the total supply and total demand means transmission loss (35,178.0MW-34,581.9MW=596.1MW). Since
area I, II, III is supply rich areas, the power flowed will flow from the west to east in this study.
8
The apparent power (S) is defined as a kind of AC power that is computed by multiplying the current (I) by the voltage (V): S
=IxV
Apparent power is measured in the unit of Volt-Amps (VA)
9
If the apparent power is larger than the equipment capacity, the transmission line is overloaded.

4-9

4.3 Power flow analyses


4.3.1 Result of power flow analyses under the normal (N-0) conditions before
reconductoring
The Survey Team conducted a power flow analysis on the night peak demand in 2020 without any outage before
reconductoring. From the result of power flow analysis, the Survey Team found neither overloaded equipment nor
voltage range violations under the N-0 conditions.

Figure 4-7 Result of power flow analysis under N-0 condition


Suralaya
Suralaya #8 =
(Lama)
625.0 MW

~
17017
SLAYA7-2
557.1
28.7

14% I 283.2
11.8
14%283.2
I
11.8

17263
BNTEN7

283.2
9.9
283.2
9.9
18% I 346.8
54.7
18%346.8
I
54.7

25% I

32% I

500.8
78% I

32% I

26% I

700.7
1562.4
20.9
297.3
700.7
20.9

Upper row: Active power (MW)


Lower row: Reactive power (MVar)
Loading ratio which is calculated by current as a

501.0

567.8
21.4

557.1
27.8
567.7
20.4

1547.1
122.7

1547.1
122.7

701.2
27.4
701.2
27.4

501.0

Cilego

Voltage (kV)

17016
SLAYA7

17005
CLGON7

Legend

Suralaya Baru
Suralaya #1-7 =
3400.0
MW
#8
625MA

Banten #1 =
660.0 MW

Jawa 9 =
600.0 MW

Banten

501.1
17301
346.6 BJGRA7
38.7
Jawa 7 =
346.6
2000.0 MW
38.8
1346.7
114.1
Bojonegar
1346.6
114.1
501.2

1000.0
97.4
1000.0
97.4

502.4

17203
CKUPA7
A

15226
BOGORX7-HVDC

1540.5
461.9

Tanara

Bogor X

514.5
17197
LKONG7

8% I

55% I

505.1

172.2 1384.8
19.3 416.8

172.2
19.3 416.8

1390.9
368.2

55% I

8% I

68% I
1390.9
368.2

1935.1 1335.6
223.9 180.3
1935.1 1335.5
223.9 180.3

4-10

502.8

503.4

Lengkong

(Source: Results of the PSS/E power flow analyses)

17011
KMBNG7

1384.8

1006.6
438.0
1006.6
438.0

38% I

~
17302
TNARA7

98% I

38% I

1559.3
1561.8 1931.3
414.0 81% I 393.8 259.3
1559.3
1561.8 1931.3
414.0 81% I 393.8 259.3

Jawa 5 =
2000.0 MW

55% I
55% I

98% I

998.3
98.0
998.3
98.0

72% I

17003
Balaraj
BLRJA7

1533.8
224.2
1533.8
224.2

68% I

78% I

172.2
12.3
172.2
12.3
1004.2
443.0
1004.2
443.0

509.8

Kembang

17010
Gan
GNDUL7

Gandul

509.6

4.3.2 Result of power flow analyses under the N-1 conditions


P3B-JB and the survey team conducted N-1 contingency analyses together to confirm the necessity of
transmission line reconductoring between Suralaya(Lama) and Gandul substations. In this study, power flow
analyses were conducted under the conditions of one circuit outage. Results of the analyses were summarized in
Table 4-5. The loading ratio, which was defined as the ratio of power flow in MVA to Nominal rate in MVA is not
allowed to exceed 100% on the planning stage in PLN.

Table 4-5 Results of N-1 contingency analyses


Outage circuit

Most heavily loaded circuit


among all monitored circuits

Transmission
10

capacity (MVA )

Power Flow

Loading

(MVA)

ratio 11

(A)

(B)

(B)/(A)

Suralaya(Lama)-Balaraja

Suralaya(Lama) Balaraja

1,985

2,079

105%

Balaraja-Cikupa

Balaraja-Cikupa

1,985

3,443

173%

Cikupa-Lengkong

Cikupa-Lengkong

1,985

2,867

144%

Lengkong-Gandul

Lengkong-Gandul

1,985

1,740

88%

(Source: Results of the PSS/E power flow analyses)

From the results of these analyses, one circuit outage caused an overloading of the healthy circuit in the same
transmission line section for Suralaya(Lama) Balaraja, Balaraja Cikupa and Cikupa Lengkong sections.
These results meant that reconductoring of the transmission line between Suralaya(Lama) and Lengkong would be
necessary.
Although the power flow loading ratio through Lengkong Gandul section was less than 100%, the Study Team
conducted a further analysis from a conservative standpoint.

As referred to hereinafter, splitting the grid is very

effective to reduce the fault current. P3B-JB and the survey team conducted an N-1 contingency analysis under
the network condition that the transmission line section between Lengkong and Gandul would be switched off as a
conservative configuration condition for the power flow. . Figure 4-8 shows the power flow analysis result under
the N-1 condition with one circuit outage of Lengkong Gandul section and grid splitting between Kembangan
and Gandul.
As shown in Table 4-6 and Figure 4-8, the healthy circuit between Lengkong and Gandul was overloaded with
103% of loading ratio to its capacity under the conditions with an outage of the same transmission section. Thus,
reconductoring of Lengkong Gandul section was necessary under this condition.

10
11

VA: unit of apparent power, M: Mega, 106


The loading ratio is defined by a quotient of power flow divided by the transmission capacity

4-11

Table 4-6

Results of N-1 contingency analyses with grid splitting between Kembangan and Gandul

Outage circuit

Most heavily loaded circuit


among all monitored circuits

Transmission

Power Flow

Loading

capacity (MVA)

(MVA)

ratio

(A)
Lengkong-Gandul

Lengkong-Gandul

1,985

(B)
2,050

(B)/(A)
12

103%

(Source: Results of the PSS/E power flow analyses)

Figure 4-8 Result of power flow analysis under the one circuit outage of Lengkong Gandul section
Legend
Voltage (kV)
Upper row: Active power (MW)
Lower row: Reactive power (MVar)
Loading ratio which is calculated by current as a

Suralaya

Suralaya Baru

(Lama)

#8

625MA

Kembang

Normally
open
Gandul
A

103% (Overload)
(Source: Results of the PSS/E power flow analyses)

12

P: Active power, Q: Reactive power, S: Apparent power, Apparent power is calculated by the formula:
S=(P2+Q2) =(1903.62+761.52) = 2,050

4-12

4.3.3 Necessary capacity of reconductored transmission lines


The Survey Team deemed that reconductoring of the 500 kV transmission line from Suralaya (Lama) through
Balaraja to Gandul will be necessary as noted above. Necessary capacity of reconductored transmission line was
3,443MVA (3,976A 13) per circuit from the results of power flow analyses jointly conducted by P3B-JB and the
Survey Team within a restricted time frame. However, the reconductored transmission line current carrying
capacity should be larger than the said capacity considering generation development in western Jawa region in
future. Although the Survey Team was not able to obtain data to evidence the future necessary capacity of the
reconductored transmission line, the capacity should be as large as rationally achievable PLN had supposed that
the reconductored capacity was 4,680 MVA (5,404A 14).

4.4 Fault current analyses


4.4.1 Conditions for the fault current analyses
On the basis of the agreement with P3B-JB, the survey team assumed the following conditions for the fault
current analyses.

Calculation methodology: Based on IEC 60909.

AC component of the fault current at 500kV buses around northwestern region of Jawa-Bali power system
was monitored.

Type of the fault: Three phase short circuit 15

Target year: 2020

The highest fault current level at 500kV system at this time: 50kA 16

4.4.2 Result of fault current analysis


Figure 4-9 shows the result of fault current analysis in 2020.

13

Formula: of apparent power S: S(MVA) = 3 500kV(A)


Same formula above
15
Three phase short circuit current is calculated by the formula:
I (pu) = 1/ X (pu)
Fault current I and the impedance from the fault point are expressed in the Per Unit method. The fault current varies in inverse
proportion to the impedance. New transmission line constructions and new generator connection with the grid both decrease the
impedance.
Impedance: The impedance in the alternating-current circuit is the ratio of voltage to current in ohm. This expression can be
deemed to be an extended Ohm's law.
Per Unit method: One of methods to express quantities such as power, current, voltage, and impedance.
1. Define the base capacity,
2. The base current and the base impedance can be calculated, and
3. Power, current, voltage, and impedance are expressed as ratios of the actual values to the base capacities respectively.
16
Estimated maximum fault current which PLN uses on the planning stage.
14

4-13

Figure 4-9 Result of the fault current analysis in 2020


Legend
57244.1, -85.1
Fault current value (A),
angle (deg.)

Suralaya

Fault current

Suralaya Baru

(Lama)

#8

625MA

Banten

Cilego

Bojonegar

Gandul

Balaraj
Kembang

A
Tanara

Bogor X

Lengkong

(Source: Results of the PSS/E fault current analyses)

4-14

Current analysis in 2016 is shown in Figure 4-10 for comparison.

Figure 4-10 Result of the fault current analysis in 2016


Legend
57244.1, -85.1
Suralaya

Suralaya Baru

(Lama)

#8

625MA

Fault current value (A),


angle (deg.)

Fault current

Kembang

Gandul
A

Lengkong

(Source: Results of the PSS/E fault current analyses)

Fault currents at Gandul and Kembangan substations would have been exceeded 50 kA in 2016. Comparing the
results of fault current analyses in 2016 and 2020, Fault currents exceeding 50kA at power plants of Suralaya
(Lama) and Suralaya Baru and substations of Balaraja, Cikupa, Bojonegara, Lengkong and Bogor X would have
been caused by connecting new generators including Jawa 5, Jawa 7, Jawa 9 and Banten.

4-15

4.4.3 Overview of the rsult of fault current analysis

(1) Overview of the rsult of fault current analysis


Substations and power plants where the fault current at the bus exceed 50 kA are listed in Table 4-7.

Table 4-7 Substations and Power plants where the fault current exceeds 50 kA
Substation / Power plant

Fault current

Kembangan

65.7 kA

Balaraja

63.8 kA

Gandul

63.0 kA

Suralaya (Lama)

57.2 kA

Suralaya Baru

56.8 kA

A substation

57.9 kA

Bojonegara

56.0 kA

Lengkong

55.5 kA

Bogor X

53.0 kA

(Source: Results of the PSS/E fault current analyses)

Some measures had to be taken against this increased fault current problem. If the situation is not improved, the
following problems would occur.

System stability relies heavily on the fault clearance function of circuit breakers in the power system. If
circuit breakers fail to break the fault current, it will tend to become hard to maintain the system stability,
consequently the risk of black out will be higher and the affected area will be broader.

If circuit breakers fail to break the fault current, the circuit breakers can be damaged. Since it takes
relatively long time to replace those damaged circuit breakers, power system operators will have to operate
the system under certain restrictions for a certain time period.

4-16

4.5 Measures against fault current problems


Some measure(s) will have to be prepared against the said fault current problems as soon as possible. Candidate
directions or measures to take against the fault current increase problem are listed below.

1. To leave the maximum fault current level as it is (50 kA)


(1) Introduction of current limiting reactors
(2) Grid splitting

2. To upgrade the maximum fault current level to 63 kA


(3) Upgrade to 63 kA and grid splitting
(4) Upgrade to 63 kA, grid splitting, and power system augmentation
(5) Upgrade to 63 kA, grid splitting, and introduction of the high impedance transformer

Each measure is explained in the following.

4-17

1. To leave the maximum fault current level as it is (50 kA)


(1) Introduction of current limiters
On the premise that existing equipment 17 in substations and power plants is used, introduction of current
limiters 18 can be a measure to suppress the fault current during the fault. Due to A current limiting reactor
inserted in series in the grid, the impedance 19 from the fault point is to be increased and consequently the fault
current will be decreased 20. On the other hand, current through the current limiting reactor causes voltage drops of
the grid around the reactor as an adverse effect. If the voltage decreases to less than the allowable range -5%,
consumer facilities can malfunction. Thus, the installation of shunt capacitor banks, which have a function to
increase the voltage, is usually a practical and feasible countermeasure for the voltage drops. In this case, enough
spaces to install the current limiting reactor and the shunt capacitor banks are necessary. The current limiting
reactor can cause another problem called a DC offset of the fault current. The following figure shows an example
of fault current waveform.

Figure 4-11 DC offset of current through a circuit breaker (image)


Fault
14 current
[kA]
12
10
8

Dc component attenuation

6
4
2
0
-2
0.00

0.05

0.10

0.15

0.20

(file zm1.pl4; x- var t) c:X0012A- BEG2A

Fault occurrence

0.25

[s]

0.30

Zero-crossing delay period Current zero-crossing

The circuit breaker can break the current only when the alternating current instantaneous value becomes zero.
The current break is completed in the following sequences.
A protective relay detects the fault.
Contacts of the circuit breaker get apart by an actuator of the circuit breaker. Since arcs in the plasma state exist
between contacts at this moment, the current has not been broken. Then, the gas is compressed in a space called a
puffer in the circuit breaker simultaneously with the contacts actuator.
The puffer naturally blows the compressed gas at the contacts to lower the arc temperature.
When current crosses the zero, the arcs get extinguished.

17

There are two specifications of circuit breakers in substations and power stations, 40kA and 50kA.
500kV current limiting reactors have been introduced at Yanghang substation in Shanghai, China in October 2014.
19
Impedance: The impedance in the alternating-current circuit is the ratio of voltage to current in ohm. This expression can be
deemed to be an extended Ohm's law.
20
The three phase short circuit fault current varies in inverse proportion to the impedance.
18

4-18

If contacts of a circuit breaker physically get apart under the conditions that the current does not become zero,
an arc or arcs will continue to exist between the contacts. After the circuit breaker operation ends and compressed
gas has been used up without extinguishing the arcs, the arcs never can be extinguished by this circuit breaker.
The long lasting fault current would melt the contacts of the circuit breaker and give thermal damage to equipment,
such as disconnector, serially connected with the circuit breaker. If the replacing equipment or parts are imported,
it will take some months. Thus, it can cause long lasting blackout.
Thus this zero-crossing delay period should be short enough to recover from this situation before the circuit
breaker actuation.

The fault current consists of an AC component and a DC component. The DC component exponentially
attenuates with the time constant decided by the power system impedances. This time constant is expressed as the
following formula.
= L/R,
where
L (H21): Inductance from the fault point
R (ohm): Resistance from the fault point

If the time constant is short enough, zero-crossing delay period will be also short enough to recover from the
zero-crossing delay situation before the actuation of a circuit breaker.

The current limiting reactor has its own time constant, which is usually much longer than the one of power
system. If the current limiting reactor is inserted in the power system, time constant of DC component attenuation
will become longer, consequently the risk of DC offset problem will increase. The Survey Team would
recommend that PLN conduct analyses of the DC offset problem if the current limiting reactor is introduced.

21

Henry: unit of inductance

4-19

(2) Grid splitting


On the premise that existing equipment in substations and power plants is used, splitting the grid by switching
off some circuit breakers and suppressing the fault current which comes from all generators into the fault point
can be one of measures against the fault current increase.
There are some patterns to split the grid to reduce the fault current as illustrated below, Figure 4-12, Figure 4-13
and Figure 4-14.
Grid configuration change system splitting

Figure 4-12 Image of a loop configuration of the grid

(Source: Created by the survey team)


From loop to radial
Figure 4-13 Image of a radial configuration

Figure 4-14 Image of independent systems

by splitting the grid

by splitting 22

Splitting
into two
systems

(Source: Created by the survey team)

(Source: Created by the survey team)

22

Independent system operation in Figure 4-14 is not so common. Since supply and demand have to be balanced in each
independent system, system operation would become less efficient in economic load dispatching.

4-20

Bus split by opening circuit breaker under normal conditions in a substation

Bus splitting under normal conditions can also reduce the fault current. Figure 4-15 illustrates an image of bus
splitting at Gandul substation. Blue filled squares show circuit breakers (CBs) switched on, and void squares show
circuit breakers switched off. Bus-A and Bus-B were split at Gandul substation by switching off some circuit
breakers.

Figure 4-15 Image of bus split at Gandul substation

(Source: Created by the survey team)

4-21

Figure 4-16 shows an image of fault current flow under the condition that fault was occurring on one of
Gandul-Lengkong transmission line circuits. Fault current would come from transformer #1 and from Bus B, not
from Bus A. Fault current with bus split would be smaller than the one under the normal bus condition with all
circuit breaker switched on.

Figure 4-16 Image of bus fault current flow under bus split configuration at Gandul substation

(Source: Created by the survey team)

4-22

2. To upgrade the maximum fault current level to 63 kA


(3) Upgrade to 63 kA23 and grid splitting
The equipments in substations and power plants which are showed in Table 4-4 should be upgraded. Figure 4-17
shows an example of fault current analysis result to reduce fault currents by opening Kembangan-Gandul
transmission line.

Figure 4-17 Grid configuration change from the loop to the radial by opening Kembangan-Gandul
transmission line
Legend
57244.1, -85.1
Suralaya

Suralaya Baru

(Lama)

#8

625MA

Fault current value (A),


angle (deg.)

Fault current

Kembang

Open

Gandul
A

(Source: Results of the PSS/E fault current analyses)

Comparing Figure 4-9 and Figure 4-17, fault currents at 500 kV buses of Kembangan and Gandul substations
was reduced by opening Kembangan-Gandul transmission line, or splitting the grid. However, fault current at the
500 kV bus of Balaraja substation was still larger than 63kA. To reduce the fault current at the 500 kV bus of
Balaraja substation, bus split operation at Balaraja substation would be effective.
23

80kA is listed as a fault current breaking ability level in the IEC standard. However, the 80kA circuit breaker in 500kV
system has not implemented in the any actual power systems, upgrading to 80kA is not dealt with in this study.

4-23

Busbar split operation at Balaraja substation

Bus A and Bus B of Balaraja substation can be split by switching of some circuit breakers (CBs) as shown in as
illustrated in Figure 4-18. Blue filled squares show circuit breakers switched on, and void squares show circuit
breakers switched off.

Figure 4-18 Busbar split operation at Balaraja substation

(Source: Created by the survey team)

4-24

(4) Upgrade to 63 kA, grid splitting, and power system augmentation


To maintain a successful level of system reliability and to reduce the fault current to less than 63kA by splitting
the power grid including the 500kV system, introducing the higher voltage system or HVDC system can be a
measure to take.
Figure 4-19 illustrates a split grid with an additional 1,100kV transmission system to reduce the risk of power
interruption as an example of measures (4).

System A and system B would be mutually interchangeable in

electricity via the 1,100 kV system.

Figure 4-19 Image of higher voltage system introduction to split the lower voltage network

(Source: Created by the survey team)

4-25

Another example of (4) is shown in Figure 4-20. Figure 4-20 illustrates a split grid with an additional
HVDC 24to reduce the risk of power interruption.

Figure 4-20 Image of introduction of HVDC

(Source: Created by the survey team)

Since the HVDC system controls power (or current in this case) between two AC systems at a constant value, it
will not increase the fault current. There is another splitting measure to adopt a Back to Back station 25.

24
25

HVDC: High Voltage Direct Current, consists of high voltage DC transmission line and AC/DC convertors.
Back to Back station is a kind of DC link system in which the convertor and the invertor is located in the same site.

4-26

(5) Upgrade to 63 kA, grid splitting, and introducing the high impedance transformer
To reduce the fault current to less than 63kA, splitting the power grid and introduction of the higher impedance
transformer can be a measure to take. Higher impedance transformers can reduce the fault current in the same
manner as the fault current limiting reactor. The higher impedance transformer doesnt require extra space.

As noted above, there are some measures against the fault current increase problem, and any of them can be
effective. Table below compares evaluations and problems of the said measures against the fault current increase
problem.

1. Measures to maintain the current fault current level 50kA

Table 4-8 Candidate directions to take against fault current increase problem
Measure

(1/2)

Evaluation

Problems

(1) Current

Suppression of fault current by

Increased time constant of the fault

limiting

increasing the impedance of power

current DC component due to a current

reactor

system. More economical than

limiting reactor inserted in series in the

upgrading of the maximum fault

grid can cause DC offset of the fault

current level. Possible measure in

current. If the circuit breaker cannot break

the short run

the fault current because of the DC offset,

Track records in other country are

this can cause serious damage to facilities


in

found.

the

substation.

Possible

stability

degradation
Land acquisition for shunt capacitor banks
against voltage drop
(2) Grid splitting

On

existing

Grid splitting at many points will worsen

equipment is used as it is, fault

system reliability; consequently risk of

current into the fault point can be

power interruption will increase to a large

suppressed by splitting the power

extent.

the

premise

that

system with least cost or without


any additional cost.

Feasibility studies are necessary. Further


system analyses including system stability

Candidate measures such as a


power system configuration change
from loop to radial or busbar
splitting at substations
(Source: Created by the survey team)

4-27

study shall be conducted before the


implementation of the grid splitting.

The survey team notes that more study will be needed to verify the effect of the current limited reactor and to
analyze the related system flows in detail even if either of the above two measures in table 4-8 is adopted. Also,
they are more suitable as one for shorter periods from the view of sustainable control of fault current. The team
concluded that the upgrading fault current level is an imperative and more effective method in the mid-term on the
consideration of the future electricity development plan in this region since the increasing supply of power flow is
probably not able to secure the current system reliability as a result of the system analysis in this study .
Thus, we will introduce the another three measures alternatively in Table 4-9, which proposes the approaches of
upgrading the fault current level up to 63kV.

2. Measures to upgrade the fault current level to 63kA

Table 4-9 Candidate directions to take against fault current increase problem
Measure

Evaluation

Problems
The power interruption risk will

(3) Maximum

fault

Although extra cost will be necessary

current

level

to replace existing equipment, power

and

supply with additional generators in

upgrading
grid splitting

(2/2)

future is expected to be maintained. It

increase
Cost

for

extra

additional

equipment will be necessary.

is preferable in the medium- and


long-term.
Track records in other country
(4) The said (3)and
power

system

augmentation

high

of

impedance

transformers

In addition to the said (3), further

It will be possible to maintain the


same level of current system reliability

(5) The said (3) and


introduction

It is preferable in the long-term.

Same as the said (3)

investment

cost

for

equipment will be necessary.


Same as the said (3)

Fault current can be decreased

on the

same principle as the current limiting


reactor, while extra land acquisition
will not necessary

(Source: Created by the survey team)

To upgrade the fault current level, a lot of studies will have to be conducted in general as noted below.

Circuit breakers have to be replaced

Bus structures may have to be reinforced

Transformers may have to be reinforced or even replaced

Additional spacers in bundled conductors of overhead transmission lines may be necessary

Ground wires may have to be reconductered

4-28

extra

4.6 Stability analyses


P3B-JB and the survey team conducted stability analyses together to confirm the power system will be stable
under the conditions noted below.
(1) Conditions for stability analyses

Network configuration and fault locations: The network configuration and fault locations for the stability
analyses are shown in Figure 4-21.

The survey team selected sending ends of transmission lines near generators as possible severe fault
locations.

Fault type: Three phase short circuit

Fault clearance time: 90milisecons after the fault occurrence

Judgment criteria for the stability: If rotor angle oscillations of generators tend to attenuate, the system is
stable.

Figure 4-21 Fault locations for stability analyses


Suralaya

Suralaya Baru

Suralaya #8 =
(Lama)

Suralaya #1-7 =

#8
625MA
3400.0
MW

625.0 MW

~
17017
SLAYA7-2

Banten #1 =
660.0 MW

Jawa 9 =
600.0 MW

Banten

501.1
17301
BJGRA7
346.6
38.7
Jawa 7 =
346.6
2000.0 MW
38.7
1346.6
Bojonegar
114.1
1346.6
114.1
501.2

17203
CKUPA7

A substation
15226
BOGORX7-HVDC

Bogor X

1540.5
461.9

Tanara
514.5
17197
LKONG7

4-29

29% I

172.2
19.3 416.8

1390.9
368.2

1390.9
368.2

502.8

8% I

503.4
23% I
23% I

Lengkong

(Source: Created by the survey team)

17011
KMBNG7

1384.8

1006.6
438.0
1006.6
438.0

1000.0
97.4
1000.0
97.4

502.4

55% I
55% I

41% I

38% I

~
17302
TNARA7

41% I

38% I

1559.3
1561.8 1931.3
414.0 34% I 393.8 259.3
1559.3
1561.8 1931.3
414.0 34% I 393.8 259.3

Jawa 5 =
2000.0 MW

1935.1 1335.6
223.9 180.3
1935.1 1335.5
223.9 180.3

998.3
98.0
998.3
98.0

72% I

17003
BLRJA7

1533.8
224.2
1533.8
224.2

29% I

33% I

Kembang

505.1

172.2 1384.8
19.3 416.8

32% I

500.8

8% I

Cilego

17263
BNTEN7

283.2
9.9
283.2
9.9
7% I 346.8
54.7
7%346.8
I
54.7

25% I

33% I

17005
CLGON7

700.7
1562.4
20.9
297.3
700.7
20.9

32% I

26% I

6% I 283.2
11.8
6%283.2
I
11.8

501.0

567.8
21.4

557.1
27.8
567.7
20.4

1547.1
122.7

1547.1
122.7

701.2
27.4
701.2
27.4

501.0

557.1
28.7

17016
SLAYA7

172.2
12.3
172.2
12.3
1004.2
443.0
1004.2
443.0

509.8

17010
GNDUL7

Gandul

509.6

(2) Results of stability analyses


Table 4-10 summarizes the results of stability analyses.

Table 4-10 Results of system analyses


Transmission line

Fault location

Result

Suralaya(Lama)-Balaraja

Suralaya

Stable

Suralaya(Lama)-Cilegon

Suralaya

Stable

Cilegon-BogorX

Cilegon

Stable

Suralaya (Lama)-Suralaya Baru

Suralaya
(Lama)

Stable

Suralaya Baru-Banten

Suralaya Baru

Stable

Banten-Bojonegara

Banten

Stable

Bojonegara-Balaraja

Bojonegara

Stable

Tanara-Balaraja

Tanara

Stable

(Source: Results of the PSS/E stability analyses)

4-30

(Reference) Stability analyses


Rotor angles of generators were shown below as the results of stability analyses.

Figure 4-22 Suralaya(Lama)-Balaraja transmission line #1 trip after a fault at Suralaya end
ROTOR ANGLE
SURALAYA S/S FAULT 90ms
SURALAYA - BALARAJA #1 TRIP
80
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

15

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Suralaya-Balaraja-2


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Suralaya-Balaraja-2
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Suralaya-Balaraja-2
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Suralaya-Balaraja-2
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Suralaya-Balaraja-2
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Suralaya-Balaraja-2
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Suralaya-Balaraja-2
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Suralaya-Balaraja-2

(Source: Results of the PSS/E stability analyses)

Figure 4-23 Suralaya(Lama)-Cilegon transmission line #1 trip after a fault at Suralaya end

ROTOR ANGLE
SURALAYA FAULT 90ms
SURALAYA - CILEGON #1 TRIP
80
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Suralaya-Cilegon


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Suralaya-Cilegon
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Suralaya-Cilegon
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Suralaya-Cilegon
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Suralaya-Cilegon
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Suralaya-Cilegon
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Suralaya-Cilegon
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Suralaya-Cilegon

(Source: Results of the PSS/E stability analyses)

4-31

15

Figure 4-24 Cilegon-BogorX transmission line #1 trip after a fault at Cilegon end

ROTOR ANGLE
CILEGON FAULT 90ms
CILEGON - BOGORX #1 TRIP
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

15

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Cilegon-BogorX


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Cilegon-BogorX
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Cilegon-BogorX
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Cilegon-BogorX
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Cilegon-BogorX
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Cilegon-BogorX
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Cilegon-BogorX
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Cilegon-BogorX

(Source: Results of the PSS/E stability analyses)

Figure 4-25 Suralaya (Lama)-Suralaya Baru transmission line #1 trip after a fault at Suralaya (Lama)
ROTOR ANGLE
SURALAYA LAMA FAULT 90ms
SURALAYA LAMA - SURALAYA BARU #1 TRIP
80
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : SuralayaLama-Baru


2 - ANGL 11010[SLAYA75-COA 23.000]1 : SuralayaLama-Baru
3 - ANGL 11052[SLAYA78-COA 23.000]1 : SuralayaLama-Baru
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : SuralayaLama-Baru
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : SuralayaLama-Baru
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : SuralayaLama-Baru
7 - ANGL 12263[BNTEN71-COA 23.000]1 : SuralayaLama-Baru
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : SuralayaLama-Baru

(Source: Results of the PSS/E stability analyses)

4-32

15

Figure 4-26 Suralaya Baru-Banten transmission line #1 trip after a fault at Suralaya Baru end
ROTOR ANGLE
SURALAYA FAULT 90ms
SURALAYA - BANTEN #1 TRIP
80
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

15

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Suralaya-Banten


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Suralaya-Banten
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Suralaya-Banten
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Suralaya-Banten
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Suralaya-Banten
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Suralaya-Banten
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Suralaya-Banten
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Suralaya-Banten

(Source: Results of the PSS/E stability analyses)

Figure 4-27 Banten-Bojonegara transmission line #1 trip after a fault at Banten end

ROTOR ANGLE
BANTEN FAULT 90ms
BANTEN - BOJONEGARA #1 TRIP
80
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Banten-Bojonegara


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Banten-Bojonegara
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Banten-Bojonegara
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Banten-Bojonegara
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Banten-Bojonegara
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Banten-Bojonegara
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Banten-Bojonegara
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Banten-Bojonegara

(Source: Results of the PSS/E stability analyses)

4-33

15

Figure 4-28 Bojonegara-Balaraja transmission line #1 trip after a fault at Bojonegara end

ROTOR ANGLE
BOJONEGARA FAULT 90ms
BOJONEGARA - BALARAJA #1 TRIP
80
70
60
50
40
30
20
10
0
0

2.5

7.5

10

12.5

15

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Bojonegara-Balaraja


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Bojonegara-Balaraja
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Bojonegara-Balaraja
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Bojonegara-Balaraja
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Bojonegara-Balaraja
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Bojonegara-Balaraja
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Bojonegara-Balaraja
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Bojonegara-Balaraja

(Source: Results of the PSS/E stability analyses)

Figure 4-29 Tanara-Balaraja transmission line #1 trip after a fault at Tanara end
ROTOR ANGLE
TANARA FAULT 90ms
TANARA - BALARAJA #1 TRIP
70
60
50
40
30
20
10
0
0

2.5

7.5

10

Time (seconds)

1 - ANGL 11006[SLAYA71-COA 23.000]1 : Tanara-Balaraja


2 - ANGL 11010[SLAYA75-COA 23.000]1 : Tanara-Balaraja
3 - ANGL 11052[SLAYA78-COA 23.000]1 : Tanara-Balaraja
4 - ANGL 11703[JAWA5#1-COA 23.000]1 : Tanara-Balaraja
5 - ANGL 11708[JAWA7#2-COA 23.000]1 : Tanara-Balaraja
6 - ANGL 11709[JAWA9#1-COA 23.000]1 : Tanara-Balaraja
7 - ANGL 12263[BNTEN71-COA 23.000]1 : Tanara-Balaraja
8 - ANGL 31701[JAWA4#2-COA 18.000]1 : Tanara-Balaraja

(Source: Results of the PSS/E stability analyses)

4-34

12.5

15

4.7 Recommendations
(1) Measures against the fault current increase problem

If the fault current level upgrade to 63kA is adopted as a measure against the fault current increase problem,
PLN should prepare for it as soon as possible.

PLN should also conduct studies on introduction of high impedance transformers in western Jawa power
system. The Survey Team particularly recommends that PLN conduct studies on introduction of high
impedance step-up transformers for new generators connected with western Jawa power system. The high
impedance of the step-up transformers will contribute to suppress fault current increase to some extent
without acquisition of extra land.

Fault current at 150kV system should be also calculated in the planning stage.

One line to ground fault current should be also calculated. To calculate the one line to ground fault current,
zero-phase-sequence impedances in the system should be prepared beforehand.

(2) Activation of PSS


Results of the stability analysis showed that the system was stable. However, it took relatively many cycles for
each generator to attenuate its internal angle oscillation, which is not a preferable status for the power system
operation. This manner of transmission system oscillation can be attenuated by application of properly tuned
power system stabilizers (PSS). According to P3B-JB, PSSs were already implemented in the generator control
systems but not activated because the planning division of P3B-JP did not have most of the existing generator
control blocks. They knew it was impossible to tune the PSS without the actual generator control blocks. Hence,
the survey team recommends that P3B-JB collect generator control blocks from power plants to be ready to tune
PSSs.

4-35

Chapter5. Technical Feasibility of the Project


5.1 Scope of the Project
The scope of the Project is as follows based on the previous chapter.

Upgrading of 500 kV Suralaya Gandul transmission line

Upgrading of three associated 500 kV substations, Suralaya, Balaraja and Gandul

5.2 Transmission Line Project


From the results of the system analysis in 2020 conducted in the Study, the transmission capacity more than 987
amperes per conductor in the Previous Study is found to be necessary. Therefore methods to upgrade as much
capacity as possible are considered in this section.
However the upgrading method by constructing a new transmission route is excluded for the following reasons.

Acquiring the lands and right-of-ways for a new transmission line is extremely difficult from

previous experiences in Indonesia.

Accordingly, the commissioning year will be seriously delayed.

5.2.1 Selection of the Method to Upgrade the Transmission Capacity


Several methods to upgrade the transmission capacity are candidates for the Project.
(1)

Upgrading by using conventional ACSR

(2)

Adoption of HTC (High Temperature Conductor)

(3)

Adoption of HTLS (High Temperature Low Sag Conductor)

Each method is explained as follows.

(1) Upgrading by using conventional ACSR


The following methods are considered for upgrading the transmission capacity by using conventional ACSR.

Increasing the number of conductors per phase

Replacing the existing conductors with larger ones

5-1

Each method is described below, assuming that the existing towers will be used without any modifications such
as reinforcements.

Increasing the number of conductors per phase

The conceptual diagram of this method is shown in Figure 5-1.

Figure5-1 Conceptual Diagram of Increasing the Number of Conductors per Phase

(Source: The Study Team)

The existing lines have four-bundled ACSR Dove. If the number of the conductors per phase is increased using
the same conductor, the transmission capacity will be upgraded as shown in Table 5-1.

Table5-1 Changes in Current Carrying Capacity by Increasing the Number of Conductors per Phase
Number of conductors per phase

Current carrying capacity


[Amperes]

2,056

3,084

4,112

(Source: The Study Team)

In this method the transmission capacity is proportional to the number of the conductors, because the maximum
temperature of the conductor to be added is same as that of the existing one and therefore the capacity of each
conductor is also same. It is necessary to double the number of the conductors per phase in order to double the
transmission capacity. The number will be more than eight in the Project. If eight-bundled conductors are installed
on the existing towers, it goes without saying that the components of the towers such as the main posts and the
foundations do not have enough strength to support the loads due to the increased weight and wind pressure.
Consequently, reconstruction of the existing towers is not avoidable, and this method is not appropriate for the
Project.

5-2

Replacing the existing conductors with larger ones

The conceptual diagram of this method is shown in Figure 5-2.

Figure5-2 Conceptual Diagram of Replacing the Existing Conductors with Larger Ones

(Source: The Study Team)

The larger conductor can send more transmission capacity. For example, if the existing conductors are
re-conductored with ACSR Falcon which is a larger conventional conductor than the existing ACSR Dove, the
transmission capacity will be upgraded as shown in the next table. ACSR Falcon has 1.67 times as large diameter
and 2.67 times as much weight as the existing one, ACSR Dove. However ACSR Falcon has only 1.84 times as
much capacity as ACSR Dove.

Table5-2 Changes in Capacity by Replacing the Existing Conductors with Larger Ones
Unit
Cross sectional area
of aluminum strands
Overall diameter

Stranded mass

Current capacity

ACSR Dove

mm2

282.1

mm

23.53

kg/km

1,140

Amperes per

ACSR Falcon
(Increasing rate)

514

conductor

805.7
(286%)
39.23
(167%)
3,043
(267%)
945
(184%)

(Source: The Study Team)

If the existing conductors are replaced with larger ones so as to satisfy the required transmission capacity, it goes
without saying that the components of the towers such as the main posts and the foundations do not have enough
strength to support the loads due to the increased weight and wind pressure. Consequently, reconstruction of the
existing towers is not avoidable, and this method is not appropriate for the Project.

As described above, the two methods, Increasing the number of conductors per phase and Replacing the
existing conductors with larger ones, are found to be inappropriate for the Project.

5-3

(2) Adoption of HTC (High Temperature Conductor)


HTC such as TACSR (Thermal resistant AACSR) and UTACSR (Ultra Thermal resistant AACSR) has higher
allowable temperature than conventional ACSR, and therefore has greater current carrying capacity. On the other
hand, conductors with higher temperature have larger sag and cannot probably keep the clearance values shown in
Table 5-3.

Table5-3 Minimum Clearances between conductor and objects


Objects

Minimum clearances [m]

Open area

12.5

Buildings and bridge

9.0

Tree

9.0

Vehicle road, highway and rail-way

15.0

Playground

18.0

Other transmission line, power line and

8.5

communication line
(Source: The Previous Report)

In the Previous Study, it was reported that the clearances were estimated to be approximately met by ensuring
the same conductor sag as that of the existing one even at the time of reinforcement by re-conductoring. Also in
the Study, the conductor sag is designed in the same way.
When HTC is operated at the maximum allowable temperature, the current capacity will be upgraded, but the
conductor sag will also be increased. As a result, the same conductor sag will not be ensured. Therefore, the
operating conductor temperature has to be limited to keep the same sag as that of the existing conductor and the
expected upgrading cannot be realized.

5-4

Reducing the span length is a solution to keeping the same sag at the maximum allowable temperature. The span
length can be reduced by installing a new tower in each span between the towers. For example, when a tower is
newly installed at the mid-span, the span length will be a half (1/2) and the sag approximately a fourth (1/4). The
conceptual diagram of this method is shown in Figure 5-3.

Figure5-3 Conceptual Diagram of Installation of New Tower at the Mid-Span

(Source: The Study Team)

Since the new towers are installed within the existing ROW, environmental and social impacts will be mitigated.
However, due to installation of many new towers, the Project cost and period, and also the shutdown period will
be increased. In this method, new towers have to be installed at all the mid-spans. The transmission lines generally
pass through open areas between Suralaya and Balaraja SS, and therefore new towers can be installed at the many
mid-spans between the sections. On the other hand, there are densely populated areas near Gandul SS, and also
many main road, express way or other transmission line crossings in the overall sections. It will be difficult to
install new towers at those mid-spans.

From the above-mentioned, this method is not appropriate for the Project.

(3) Adoption of HTLS (High Temperature Low Sag Conductor)


HTLS has as high allowable temperature as HTC, and also has lower sag than HTC. Generally, the characteristic
is realized by using a material with the low co-efficient of linear expansion value as the core.

The conceptual diagram of this method is shown in the Figure 5-4.

5-5

Figure5-4 Conceptual Diagram of Installation of HTLS

(Source: The Study Team)

The operating conductor temperature has to be limited to keep the same sag as that of the existing conductor as
aforementioned. Since HTLS has lower sag than HTC, HTLS has more current capacity than HTC.
The merits in this method are as follows.

Modifications to existing towers, such as reinforcements or reconstruction, are not necessary.

HTLS has twice as much current carrying capacity as the existing conductor.

Only re-conductoring enables the transmission lines to be upgraded, and it leads to the shorter
implementation period of the Project.

No additional lands are acquired, and there are few environmental and social impacts.

From the above-mentioned, this method is the most appropriate for the Project.

5.2.2 Selection of the Type of HTLS


Although there are several types of HTLS, the following conductors are selected as candidates from the
viewpoints of upgrading capacity, less loading impact on the existing towers and so on. Finally the best conductor
is selected from those.
(1) Thermal-resistant Aluminum Alloy Cable, Fiber Reinforced (TACFR)
(2) Super Thermal-resistant Aluminum Alloy Conductor, Aluminum-clad Invar Reinforced (ZTACIR/AC)
(3) Extra Thermal-resistant Aluminum Alloy Conductor, Aluminum-clad Invar Reinforced (XTACIR/AC)

Concentric-lay-stranded gap type thermal-resistant aluminum alloy conductors, steel reinforced (GTACSR) was
one of the candidates in the Previous Study, but is excluded from the Project in the Study. In the case of GTACSR,
the maximum conductor tension is greater than that of the existing one and therefore it is necessary to study
further whether the existing tower structures can bear the greater tension or not. However the further study cannot
be conducted because the existing lines are very old and the tower diagrams or design reports no longer exist.
Therefore it is important to select the conductor whose characteristics, such as the mass and the diameter, are
similar to ACSR Dove so that the tensions of the replaced conductors may not exceed those of the existing ones
on the towers.

5-6

(1) Thermal-resistant Aluminum Alloy Cable, Fiber Reinforced (TACFR)


The conductor is up-rated by the use of thermal-resistant aluminum alloy wires (TAL) which has the continuous
allowable temperature up to 150C. The sag is lowered by the use of carbon fiber composite cables (CFCC) with
the low co-efficient of linear expansion value. The TACFR in the Study does not have normal round aluminum
alloy strands, but trapezoidal ones. The proposed TACFR has the cross sectional view as shown in Figure 5-5 and
has the following features.

The co-efficient of linear expansion value of the CFCC is about one tenth (1/10) as low as that of
conventional steel wires in ACSR.

Trapezoidal aluminum alloy strands are used.

The current carrying capacity of the TACFR is approximately twice as much as that of ACSR Dove.

When increasing the current carrying capacity to double, the sag of the replaced up-rating conductor is as
approximately same as that of the existing ACSR used at 75C.

The weight of the CFCC is about one sixth (1/6) as much as that of conventional steel wires, and the overall
weight is lighter than that of conventional ACSR.

The strand configuration of the core cables makes the bending stiffness of the conductor low, and allows it
to be easily handled.

In Indonesia and China, conductors with carbon cores which have the core part made in Japan and the
aluminum part made in foreign countries have been adopted. On the other hand, in Japan, conductors with
carbon cores which have both parts made in own country have been used.

Figure5-5 Cross Sectional View of TACFR

(Source: The Study Team)

(2) Concentric lay stranded, Super thermal-resistant aluminum alloy conductor, aluminum-clad Invar
reinforced, so-called Invar Type Conductor (ZTACIR/AC)
To increase the current carrying capacity, super thermal-resistant aluminum alloy wire (so-called ZTAL),
which can utilize up-to 210 C continuously, is used. In order to restrain the sag to increase, Invar core wire,
whose co-efficient of linear expansion value is smaller, is adopted to satisfy the requirement. The Invar Type
Conductor has the cross sectional view as shown in Figure 5-6, which is same as the conductor proposed in the
Previous Study, and has the following features.

The construction of ZTACIR/AC is same as that of conventional ACSR conductors. In the core wire part,
5-7

Invar Wire is adopted, and the co-efficient of linear expansion value is smaller. The value of the Invar
wire is about 1/3 of that of the conventional steel wire used in ACSR.

ZTAL is used.

It is possible to increase the current carrying capacity to almost double, compared with ACSR Dove.

When increasing the current carrying capacity to double, the sag of the replaced up-rating conductor is as
approximately same as that of the existing ACSR used at 75C.

ZTACIR/AC made in Japan has been used in China and Japan. The similar products have been
manufactured in Korea, and they have been adopted in Korea, Malaysia, India and China etc.

Figure5-6 Cross Sectional View of ZTACIR/AC

(Source: The Previous Report)

(3) Concentric lay stranded, Extra thermal-resistant aluminum alloy conductor, aluminum-clad Invar reinforced,
which is so-called Invar Type Conductor (XTACIR/AC)
To increase the current carrying capacity, extra thermal-resistant aluminum alloy wire (so-called XTAL),
which can utilize up-to 230 C continuously, is used. In order to restrain the sag to increase, Invar core wire,
whose co-efficient of linear expansion value is smaller, is adopted to satisfy the requirement. The proposed Inver
Type Conductor has the cross sectional view as shown in Figure 5-7 and has the following features.

In the core wire part, Invar Wire is adopted, and the co-efficient of linear expansion value is smaller. The
value of the Invar wire is about 1/3 of that of the conventional steel wire used in ACSR.

Trapezoidal XTAL is used.

The current carrying capacity of the XTACIR/AC is about 2.4 times as much as that of ACSR Dove.

When increasing the current carrying capacity to 2.4 times, the sag of the replaced up-rating conductor is as
approximately same as that of the existing ACSR used at 75C.

Japanese manufactures only can produce XTACIR/AC. They have been installed in China, USA and
Australia as well as Japan.

5-8

Figure5-7 Cross Sectional View of XTACIR/AC

(Source: The Study Team)

(4) Evaluation
The properties and the calculation results of the sag and the current carrying capacity for each up-rating
conductor are shown in the next tables.
The required design conditions for up-rating conductors in the Study are as follows.

Not to exceed the sag of the existing conductor, 21.70 m at the 500 m span.

Not to exceed the maximum tension (23,025 N) of the existing conductor.

Not to exceed the weight (1,140 kg/km) and the diameter (23.53 mm) of the existing conductor.

Under the required conditions, XTACIR/AC has the most current carrying capacity of the candidates for the new
conductor, and is recommended for the Project. The capacity is approximately 2.4 times as much as that of the
existing conductor. Moreover the conductor needs no special tools for installation.

5-9

Table5-4 Properties of Each Up-Rating Conductor


Existing
Description

Unit

Conductor
(ACSR Dove)
26/3.716 (HAL)

Composition

Nos/mm

Min. breaking load

kN

AL
Cross-Section
St

al Area

mm

Total

TACFR

ZTACIR/AC

XTACIR/AC

315mm2

225mm2

230mm2

10/4.98
(TW-TAL)

34/2.9 (ZTAL)

14/3.5
(TW-XTAL)
10/3.5

6/4.98 (TW-TAL)

7/2.891 (St)

7/2.6 (CFCC)

7/3.55 (IR/AC)

7/3.46 (IR/AC)

101.0

122.6

107.2

97.6

282.1

311.7

224.6

230.9

45.95

37.20

69.29

65.80

328.1

348.9

293.9

296.7

(TW-XTAL)

Nominal Diameter

mm

23.53

22.36

22.30

20.8

Nominal Weight

kg/km

1,140

923.7

1,117

1,105

DC Resistance at 20 C

/km

0.1024

0.0950

0.1224

0.1229

82.0

61.8

83.1

81.8

205.9

155.0

152.0

152.0

19.0

23.0

14.7

15.0

11.5

1.0

3.7

3.7

75

150

210

230

Modulus of

Cond.

Elasticity

Core

Coefficient

Cond.

GPa

-6

Linear
Expansion

x10 /C
Core

Max. Allowable
Temperature

(Source: The Previous Report and the Study Team)

Table5-5 Calculation Results of Sag and Current Carrying Capacity for Each Up-Rating Conductor
Existing
Description

Unit

TACFR

Conductor

Current under the above

XTACIR/AC

225mm2

230mm2

21.70

20.91

21.70

21.66

at 75C

at 150C

at 158C

at 230C

514

1,080

987

1,252

23,025

23,025

22,855

23,025

(ACSR Dove)

Sag in 500 m Span

ZTACIR/AC

315mm2

condition
Max. Tension

(Source: The Previous Report and the Study Team)

5-10

5.2.3 Evaluation of transmission losses


The transmission losses are compared between the existing conductor, ACSR Dove, and the up-rating conductor,
XTACIR/AC 230mm2. It is assumed that Suralaya Gandul line has double circuits, that the maximum current
flow on another one during shutdown of a circuit, and that each circuit has a flow of a half of the value, 2,504
Amperes, in the normal conditions,.
On the other hand, the existing conductor has the maximum current of 2,056 Amperes per phase. For the
purpose of comparison, the losses of the existing conductor are calculated assuming that the same current, 2,504
Amperes per circuit, flow also on the existing conductor.
Since the transmission losses are largely caused by the electrical resistance, the corona loss26 is not taken into
account.
The transmission losses are calculated and shown in Table 5-6. The transmission losses produced in
XTACIR/AC 230mm2 is 1,485.06 kW/km, and is about 1.3 times as much as those of the existing conductor,
ACSR Dove. The increase is due to the greater value of the AC resistance of the conductor.

Table5-6 Transmission Losses


Description

Unit

XTACIR/AC 230mm2

ACSR Dove

Operating Voltage

kV

500

Frequency

Hz

50

Current per Phase

2,504

AC Resistance

/km

kW Loss
(for double circuits)

0.1254

0.1579

kW/km

1,179.40

1,485.06

kW

130,913

164,842

(Source: The Study Team)

Also, the annual energy lost in the transmission lines is calculated by the product of the transmission losses, the
total hours per year (8,760 hours) and a loss factor, Fr. Here, Fr is calculated from the following Buller-Woodrow
formula, assuming the load factor, f, is 0.7.

Fr = 0.7 x f2 + 0.3 x f = 0.553

The calculated results are shown in the Table 5-7. The annual transmission losses in the re-conductored lines are
about 1.3 times as much as those of the existing lines for the same reason as mentioned above.

26

A corona discharge is an electrical discharge produced by non-uniform electrical fields around a pointed electrode. When it
rains, the corona frequently occurs at the conductor surface in high-voltage transmission lines, and also causes power loss.

5-11

Table5-7 Annual Transmission Losses


Description

Unit

kWh Loss

kWh/km

(for double circuits)

kWh

ACSR Dove

XTACIR/AC 230mm2

5,713,344

7,194,046

634,181,184

798,539,106

(Source: The Study Team)

5.2.4 Re-conductoring Work to HTLS


There are two kinds of conductors replacement methods, the tension stringing method and the cradle block
method. The former method needs countermeasures against great sags of the conductors during re-conductoring,
such as installation of bamboo scaffoldings over main roads and so on. The latter method, which can prevent the
conductor sags during re-conductoring, is adopted in densely populated areas, because there are many road
crossings and so on and installation of many scaffoldings takes much work. The cradle block method is frequently
used in Japan, where there are many densely populated areas.
In the following subsections, the conductors replacement methods are introduced, then the current situations
around the existing transmission line routes are described, and finally the proper replacement method in each
section is selected.

(1) Conductors replacement methods

Tension Stringing Method

The sufficient scaffolding shall be installed by means of bamboo etc. before the commencement of the
conventional paying out works. In the tension tower, all jumper conductors shall be dismantled and both sides of
conductors shall be connected by means of suitable connection wires. Putting the existing conductor on the
stringing roller, all conductors shall be pulled off. Installing the counter weight at the tail of the existing conductor
to avoid the rotation of conductor during paying out and connecting the replaced conductor afterwards, the
replacement works shall be carried out.
Or replacement of conductor after changing the existing conductor to the pulling wire first may also be realistic.
In both cases, four-bundled conductors can be replaced simultaneously, and therefore the construction speed is
usually fast.

Cradle Block Method

In the urban crowded housing area or at the important obstacles crossing, where the installation of the
scaffolding seems difficult, so-called Cradle Block Method may be applicable which install twin small rollers in
each span intervals of about 20 to 30 meters on the existing ACSR and to pull out the bottom replaced conductor.
If this method is adopted, the sag during the installation can be bound by means of the anchored ACSR. So even
though there are some obstacles such as houses underneath the line, paying out works can be held without
constructing any scaffolding. However in case of 4 bundled conductors, each conductor shall be replaced one by
one, so the installation speed becomes slow.
The outline of Cradle Block Method is described in Table 5-8.
5-12

Table5-8 A stringing method by means of cradle block system


No.

Major Procedure

Major Work Step

Before Commencement

Initial Condition
Existing Conductor

Distribute

cradle

blocks

and

pulling/connection rope by means of


motor car etc.
Distribution of Cradle Blocks

At that time, cradle blocks shall be


hung

down

on

the

About 20-30m

Existing

Existing Conductor

existing
Motor Car
Nylon Rope

conductor.

Nylon Rope
Cradle Block

To avoid any induced current,


so-called Kevlar Rope may be
suitable to adopt.
3

At the tail of the pulling wire,


connect the replaced conductor and
paying

out

works

shall

be

Pull New Conductor by Nylon Rope

Nylon Rope

Existing Conductor

commenced.

Existing

To avoid rotation, some suitable


unti-twisting counter weight may be

Drum

New Conductor

Nylon Rope

New

Cradle Block
Counter Weight

applicable.
Winch

Finish the paying out works.

Completion of New Conductors paying out


Nylon Rope
Existing Conductor

Drum

New Conductor

Existing

Nylon Rope

New

Cradle Block

Winch

5-13

No.

Major Procedure

Major Work Step

Releasing the tension of the


existing conductor, change the sag
location between the existing and

Change Sag between Existing and New Conductor


Nylon Rope
Existing Conductor

replaced conductor.

Existing

Nylon Rope

New Conductor

New

Cradle Block

Hanging the cradle blocks on the


replaced conductor, connecting the
anchored rope at the tail of the

Collection of existing Conductor

existing conductor to be collected

Nylon Rope
Existing

New Conductor

up.
Drum

New

Nylon Rope
Cradle Block
Existing Conductor
Winch

At the tail of the anchord tope,


installing

a braking

instrument,

collect up the rope together with

Collection of Nylon Rope and Block

cradle blocks.

Brake Instrument

Nylon Rope

New Conductor

New

Nylon Rope
Cradle Block

Winch

Fish the replacement

Completion of Paying-out
New Conductor

(Source: The Previous Report)

The tension stringing method and the cradle block method are compared as shown in Table 5-9.
5-14

Table5-9 Comparison between Tension Stringing Method and Cradle Block Method

(Source: The Previous Report)

5-15

(2) Selection of replacement method

Tension stringing method

The tension stringing method is used for open areas with few residents or no important crossings. After the site
survey, it is found that the existing lines generally pass through open areas. Therefore, this method can be used for
many route sections, excluding the densely populated areas near Gandul SS, and also many main roads, express
way, railway or other transmission line crossings.

Figure5-8 Route Sections Suitable for Tension Stringing Method

(Source: The Study Team)

Cradle block method

The cradle block method is used for densely populated areas or important crossings. After the site survey, it is
found that this method has to be adopted in the densely populated areas near Gandul SS, and also at many main
roads, express way, railway or other transmission line crossings.

Figure5-9 Route Sections Suitable for Cradle Block Method

(Source: The Study Team)

5-16

* Cradle Block Method may be used in other places such as existing T/L, highway, main road and railroad crossing.

Figure5-10 Mapped Route Sections Suitable for Cradle Block Met


(Source: Map in the Previous Report, modified by the Study Team)

5-17

The following table shows that there are densely populated areas or important crossings such as railways or
express ways in the stringing sections according to the site survey. Since it is difficult to install scaffoldings in
these areas or points, these sections are suitable for the cradle block method.

Table5-10 Recommended Stringing Sections Suitable for Cradle Block Method


Line Route

Stringing Section

Line Length
(km)

Crossing
(Reasons to adopt cradle system)

No.21-No.22

0.4

Other T/L crossing

No.32-No.38

3.0

Highway, railway, other T/L crossing

No.54-No.58

2.4

Factory

No.69-No.70

0.5

Other T/L crossing

No.107-No.111

2.5

Other T/L crossing

Line I

No.133-No.138

3.1

Populated area, other T/L crossing

(North)

No.139-No.143

2.7

Factory

No.151-No.156

2.4

Other T/L crossing

No.184-No.185

0.5

Other T/L crossing

No.192-Gandul SS
Other sections
Sub Total

Line II
(South)

17.3
5.0
39.8

Populated area, other T/L crossing


Main roads with much traffic

No.20-No.21

0.4

Other T/L crossing

No.31-No.37

3.0

Highway, railway, other T/L crossing

No.53-No.57

2.4

Factory

No.68-No.69

0.4

Other T/L crossing

No.106-No.110

2.5

Other T/L crossing

No.132-No.137

3.1

Populated area, other T/L crossing

No.138-No.142

2.6

Factory

No.150-No.155

2.4

Other T/L crossing

No.183-No.184

0.6

Other T/L crossing

No.191-Gandul SS
Other sections
Sub Total
Total

17.6
5.0

Populated area, other T/L crossing


Main roads with much traffic

40.0

79.8

(Source: The Study Team)

5-18

Finally, the route lengths suitable for the tension stringing or the cradle block method are shown in the Table
5-11.

Table5-11 Route Length by Each Replacement Method (Unit: km)


Line Route

Line I

Line II

Method

Suralaya -

Balaraja -

Balaraja

Gandul

Sub Total

Tension Stringing

53.2

17.8

71.0

Cradle Block

8.8

31.0

39.8

Tension Stringing

52.9

18.2

71.1

Cradle Block

8.7

31.3

40.0

Total

110.8

111.1

(Source: The Study Team)

5.2.5 Re-conductoring Costs


The quantities of materials for the re-conductoring work are shown in Table 5-12.

Table5-12 Quantities of Materials for Re-Conductoring Work


Line
Route

Conductor

Suspension

Tension

Jumper

Spacer

Armour

Mid-span

Repair

Clamp

Clamp

Spacer

damper

Rods

Joint

Sleeve

Line I

1,400 km

2,192

680

246

4,671

2,192

700

75

Line II

1,400 km

2,155

806

293

4,675

2,155

700

75

Total

2,800 km

4,347

1,486

539

9,346

4,347

1,400

150

(Source: The Study Team)

The re-conductoring unit costs for erection work are estimated as follows.

Tension stringing method

523,200,000 IDR/km

Cradle block method

443,200,000 IDR/km

Based on the above, as a result of estimated construction costs relating to reconducting transmission lines, the
grand total was USD 83 millions as shown in Table 5-13.

5-19

Table5-13 Re-Conductoring Costs (Unit: Million US$)


No

Items

Costs

Conductor

60.1

Hardware

2.1

Stringing

9.1

Scrap of conductor

Total

-3.5
67.8

Contingency 10%

7.5

Overhead 10%

8.3

Grand Total

83.6

(Source: The Study Team)

5.2.6 Construction Schedule


If the conventional tension stringing method is adopted, 4-bundled conductors can be paid out simultaneously.
Therefore, the progress speed is expected to be about 8km/month/circuit per a stringing crew. On the other hand, if
the cradle block method is adopted, each individual conductor shall be paid out one by one. Therefore, the
progress speed is only about 4km/month/circuit per one crew.
The construction duration by each method is estimated as follows.

Conventional Tension Stringing Section: 142.1 km / 8 km per month = 17.8 Months per crew

Stringing Section by Cradle Block system: 79.8km / 4 km per month = 20.0 Months per crew

In the Project, the Study Team assumed that four crews would work taking into consideration the
commissioning in 2019. If further crews are added, the management of them and the securing the skilled workers
are concerned. If four crews are adopted, the construction duration may be as shown in Table 5-14.

Table5-14 Estimated Construction Duration (Unit: Month)


Line Route
Line I
Line II
Total

Duration
Tension Stringing Method

Cradle Block

Total

Suralaya - Balaraja

1.7

0.6

2.3

Balaraja - Gandul

0.6

2.0

2.6

Suralaya - Balaraja

1.7

0.6

2.3

Balaraja - Gandul

0.6

2.0

2.6

4.6

5.2

9.8

(Source: The Study Team)

5-20

5.2.7 Points to be Considered for Stringing Work


There are some points to be considered for the stringing work and they are listed below. The first two points
result from changes in the transmission facilities from the year 2007, and the third is the one which was already
noted in the Previous Report.
(1) Tower re-construction associated with new construction of Balaraja SS
(2) Additional 150 kV double circuits on towers of Line I near Gandul SS
(3) Countermeasures against insufficient clearances

(1) Tower re-construction associated with new construction of Balaraja SS


In the Previous Study, the Balaraja SS had been planned to construct in 2009, and the Study Team confirmed
that the Balaraja SS was constructed as planned. It was also found out through the on-site survey that the single
circuit towers of the Line I and II had been re-constructied to the double circuit ones associated with the new
construction of Balaraja SS. The towers before and after the re-construction are shown in Figure 5-11 and 5-12.

5-21

Figure5-11 Towers before and after Construction of Balaraja SS

(a) Before Construction of Balaraja SS

(b) After Construction of Balaraja SS


(Source: The Study Team)

Figure5-12 Present Double Circuit Towers near Balaraja SS

(a) The First Tower to Suralaya SS

(b) The First Tower to Gandul SS

(Source: The Study Team)

5-22

The Study Team had the information that some towers, which had been constructed by local companies (or
workers) in Indonesia, had defects such as missing nuts & bolts or members, and therefore observed the
re-constructed towers carefully. As a result, the towers appeared to have been built firmly without any defects and
to have no problems with the future re-conductoring work. However, ropes or wires have possible contacts with
another energized circuit during the stringing work on the double circuit towers, unlike on the single circuit ones.
It may cause electrical shock hazards by the contacts or the induced currents. The shutdown of the other circuit
may also be necessary.

(2) Additional 150 kV double circuits on towers of Line I near Gandul SS


Most of the towers of the lines have a single circuit line configuration. In the Previous Study, it was reported
that the towers in the eight-km section of Line I near the Gandul SS had been designed for an existing 500 kV
single circuit and future 150 kV double ones.
After the site survey, it was found that the 150 kV double circuit lines had been installed on those towers. The
150 kV lines go from the Gandul SS to the no. 212 tower on the same towers as those of the 500 kV Line I, and
then go to the Serpong SS on the different route.
As stated in (1), ropes or wires have possible contacts with other energized circuits during the stringing work in
the section. The shutdown of the other circuits may also be necessary.

5-23

Figure5-13 Additional 150 kV Double Circuits on Towers of Line I near Gandul SS


(a) Pictures in the Previous Study

(b) Pictures in the Study

(Source: The Previous Report and the Study Team)

(3) Actions against insufficient clearances


According to the Previous Study, it was reported that the clearance for 70 kV and 150 kV line would be quite
severe. In the Study, it was impossible investigate in detail the clearances from the two 500 kV lines with the
length of approximately 100 km respectively. In the actual re-conductoring work, therefore, detailed investigation
and study for ground clearance and other clearance for all obstacles under the entire lines shall be carried out.
Where the clearance is insufficient, it is necessary to study the proper countermeasures to be taken.

5-24

5.3 Substation Project


5.3.1 Overview of Existing 500 kV Substations
Before studying the substation project, the Study Team surveyed Gandul, Balaraja and Suralaya substations. The
survey results are as follows.

(1) Gandul substation


The site photographs and the existing facilities are shown in the next figure and table, respectively.

Figure5-14 Site Photographs at Gandul SS


Overview

Circuit Breaker
(Convention
type)

Line

(Source: The Study Team)

5-25

Table 5-15 Existing Facilities at Gandul SS

<Red shows the result of site survey>


PRESENT(As of
Nov.17 2015)

Existing Facilities (Start operation in1981)

No.

Name of
equip.

CB

Qt'y

14

Rated
voltage
kV

Rated
short
time
Rated withstand
Current current
A
kA (3S)

Manufacturer
Maker

Country

ABB
GEC Alstom
AREVA
Magrini G.

Sweden
not sure
France
not sure

525
525
525
525

4,000
3,150
3,150
3,150

50
40
40
40

1,520
1,520
1,520
1,520

Present current
A

CT

69

not sure

not sure

525

3,150

40

1,520

DS

39

not sure

not sure

525

3,150

40

1,520

Line trap

not sure

not sure

525

3,150

40

1,520

Tr.

Unit 1&2

Elin

Unit 3

ABB

France
China

Rated capacity : 500 MVA


500kV

0kV

kV

(Source: The Study Team)

5-26

Figure 5-15 Single Line Diagram (Gandul S/S)

Marks show the scope of this study, to be replaced.

5-27

(2) Balaraja substation


The site photographs and the existing facilities are shown in the next figure and table, respectively.

Figure5-16 Site Photographs at Balaraja SS


Circuit Breaker
(Convention
type)

Overview

CT
Line Trap

(Source: The Study Team)

5-28

Table 5-16Existing Facilities at Balaraja SS

<Red shows the result of site survey>


PRESENT(As of
Nov.18 2015)

Existing Facilities (Start operation in 2009)

No.

Name of
equip.

Qt'y

Manufact
Country
urer

Rated
voltage

Rated
short
time
Rated withstand
Current current

kV

kA (3S)

Present current
A

12

AREVA

France

550

3,150

40

1,520

CT

90

AREVA

France

550

3,150

40

1,520

37

AREVA

France

550

3,150

40

1,520

Line trap

AREVA

France

550

3,150

40

1,520

Tr.

9/3bay AREVA

Turkey

Rated capacity : 500 MVA


500kV

0kV

kV

(Source: The Study Team)

5-29

Figure 5-17 Single Line Diagram (Balaraja S/S)

Marks show the scope of this study, to be replaced.

5-30

(3) Suralaya substation


The site photographs and the existing facilities are shown in the next figure and table, respectively.

Figure5-18 Site Photographs at Suralaya SS


Circuit Breaker
(Convention

Overview

500/150 kV Transformer (made in Japan)


(Source: The Study Team)

5-31

Table 5-17Existing Facilities at Suralaya SS

<Red shows the result of site survey>


PRESENT(As of
Nov.19 2015)

Existing Facilities (Start operation in 1984)


Rated
short
time
No.

Name of
equip.

Qt'y

Manufact
urer
Maker

Country

Rated
voltage

Rated withstand
Current current

kV

kA (3S)

Present current
A

GCB (3 bay)
1

GCB

ALSTOM

France

550

3,150

40

1,315

CT

54

ALSTOM

France

550

3,150

40

1,315

DS

21

ALSTOM

France

550

3,150

40

1,315

GCB

12

AREVA

France

550

3,150

40

1,315

CT

45

BBC

Switerland

550

3,150

40

1,315

DS

35

BBC

Switerland

550

3,150

40

1,315

Line trap

AREVA

France

550

3,150

40

1,315

Tr.

Mitsubishi
Electric.

Japan

CB (4 bay)

(Source: The Study Team)

5-32

Figure 5-19 Single Line Diagram (Suralaya S/S)

Marks show the scope of this study, to be replaced.

5-33

5.3.2 Adaptation and Replacement Works for Substation Equipment


(1) Consideration of adaptation
By re-conductoring and upgrading of the transmission lines, the current capacity of the substation equipment
which connects directly to the transmission line becomes insufficient, and the equipment has to be replaced. The
specifications of the rated currents of the series devices at the substations associated with re-conductoring of
Suralaya Balaraja Gandul T/L have to satisfy the maximum load currents at all time after re-conductoring.
The specifications of the existing series devices are shown in the next table. The future values exceed the
capacity of the existing equipment. The newly installed equipment has to satisfy these values.

Table 5-18 Rating of Existing and Newly Installed Circuit Breakers


Present situations

Predicted values

Newly installed equipment

(As of November 2015)


Substation

Rated

Rated

Rated short

Maximum

Fault

Rated

Rated short

voltage

current

time withstand

load current

current

current

time withstand

current

at all time

current

GANDUL

525 kV

3150 A

40 kA

5008 A

63.0 kA

6000 A

63 kA

BALARAJA

525 kV

3150 A

40 kA

5008 A

63.8 kA

6000 A

63 kA

SURALAYA

525 kV

3150 A

40 kA

5008 A

57.28 kA

6000 A

63 kA

Note: The fault current in Predicted values is greater than 63 kA in the substation. The value should be less than 63 kA by the
power system operation.
(Source: The Study Team)

(2) Replacement works


The rated currents of the series devices related to the transmission line after re-conductoring are insufficient, and
therefore have to be replaced. The replacement works at the substation are as follows.
(Common to three substations)

Replacement of the existing 500kV circuit breakers.

Replacement of the existing 500kV disconnectors.

Replacement of the existing 500kV current transformers.

Replacement of the existing 500kV line trap.

Replacement of the existing conductors for transmission line bays.

Replacement of the existing supporting structure for equipment

Replacement of the foundations of the above equipment.

Setting and adjustment of the existing protection relays and meters.

5-34

The implementation schedule or the points to be considered are as follows.

The required construction period is estimated to be 36 months. The period includes equipment
manufacturing, transportation, local construction (Civil work: foundation dismantling and new construction,
Equipment work: existing equipment removal work including equipment support structure dismantling and
new equipment installation work including new equipment support structure), and the field tests. Of these,
Site work is expected to take about 20 months. However, if more crews are adopted, it is possible to shorten
the construction period.

The replacement works at the substations need to be implemented together with the transmission line
re-conductoring works. The both works should be implemented in a coordinated way also taking into
considerations the operations of the 500kV grid and suitable shutdown plans.

The quantities of substation equipment to be replaced and their rated currents are shown in the next table.

Table 5-19 Quantities of Substation Equipment to be Replaced and Rated Currents


Substation
No. of transmission line
circuits
3-phase circuit breaker
(Rated current)
Single-phase

current

transformer
(Rated current)
3-phase disconnector
(Rated current)
Line Trap
(Rated current)

Gandul

Balaraja

Suralaya

(6000 A)

(6000 A)

(6000 A)

24

42

24

(6000 A)

(6000 A)

(6000 A)

14

22

14

(6000 A)

(6000 A)

(6000 A)

(6000 A)

(6000 A)

(6000 A)

(Source: The Study Team)

5-35

(3) Future considerations required


The newly installed equipment is larger and heavier because the rated currents increase as shown in the table
above. The followings should be considered in the future.

Shortening the periods of replacement works

*The replacement works need shutdown, and it is necessary to consider shortening the periods of shutdown

Measures for equipment, other than the main equipment against fault current.

Study on measures against fault currents more than 63 kA at Balaraja substation

Study on rated current of the main bus bar

5.3.3 Substation Project Costs


The substation project costs are shown in the Table 5-20. It includes all the costs such as equipment,
transportation, civil work, installation and the commissioning test. The specifications of equipment are assumed to
be air-insulated switch gears.
Table 5-20 Equipment and Local Construction Costs (Unit: US$)
GANDUL

BALARAJA

7,287,320

8,221,000

467,000

503,510

7,754,320

8,724,510

Equipment
Local construction
Total

SURALAYA

Grand total

7,287,320
453,104
7,740,424
24,219,254

(Source: The Study Team)

5.4 Total Project Costs


The total construction costs for the Project including re-conductoring of the transmission lines and upgrading of
three associated 500 kV substations are shown in the next table.

Table5-21 Total Project Costs (Unit: Million US$)


Transmission Facilities

83.6

Substation Facilities

24.2

Total

107.8

(Source: The Study Team)

5-36

(Reference) Application to Other Re-conductoring Projects


Other re-condoctoring projects such as upgrading of 500 kV New Suralaya Balaraja transmission line are
planned. The line is illustrated in the next figure, and goes from New Suralaya to Balaraja via Banten and
Bojonegara.

Figure 5-20 Re-Conductoring of 500 kV New Suralaya Balaraja T/L

(Source: The Study Team)

The line has the same conductors, four-bundled ACSR Dove per phase, as Suralaya Gandul line. Therefore,
up-rating conductors in the Study such as XTACIR/AC, ZTACIR/AC and TACFR can be applied to the
re-conductoring project.

5-37

Chapter6. Environment and Social Practicability


6.1 Environmental and Social Impact of the Project
Because of the densely populated area along the Suralaya-Gandul lines the construction work is limited to
re-conductoring of existing conductor, and there will be no new physical objects to adversely affect the
environment. The environmental impacts specific to a transmission project are social resettlement,
electromagnetic fields, corona noise and radio noise.

6.1.1 Social resettlement


When a new transmission line involving land acquisition is constructed, resettlement of residents is often
required to secure the right of way, and this often poses a social problem. In case of this project, however, the
planned increase in the capacity of the transmission lines can be achieved simply by re-conductoring the
transmission line using the existing electric power pylons, therefore resettlement of the residents will not be
necessary in principle. Suralaya Gandul Lines, which the feasibility study was conducted, pass through many
densely populated residential areas of West Java Province especially near Jakarta. It is quite difficult to acquire
lands in those areas, and construction of a new transmission line is considered quite difficult due to longer
construction process. Therefore, considering the circumstances of the construction sites, the re-conductoring of the
existing transmission line, which we are proposing, is regarded to be the most effective and practical means of
increasing the transmission capacity as desired.

6.1.2 Electric and Magnetic Field Intensities


According to the Previous Report, the restriction values of the electrostatic and electromagnetic field strength in
Indonesia are defined in the SNI (04-6918-2002), as shown in Table 6-1. The reference levels in the ICNIRP
Guideline are also shown the table.
Table 6-1 Limited Values for Electric and Magnetic Field
Organization
Item

Electric

Object

Field

Strength

Magnetic

Flux

Density

SNI

ICNIRP

General Public

5 kV/m

5 kV/m

Occupational

10 kV/m

10 kV/m

100 T

200 T

(1,000 mG)

(1,000 mG)

500 T

1000 T

(5,000 mG)

(10,000 mG)

General Public
Occupational

(Source: The Study Team)

6-1

As for the electric field strength, it is reported in the Previous Report that the transmission line conductor with
the minimum height of 15 m above the ground has the values a little more than 5 kV/m, and that the actual
conductor height above the ground, 16 m or so, has the electric field strength of 4.9 kV/m.
In the Project, the transmission line voltage and the height of the replaced conductors will be the same as those
of the existing line. Therefore the predicted electric field strength will also be same as that in the Previous Report,
and be less than 5 kV/m.
As for the magnetic flux density, though the height of the replaced conductor is the same as those of the existing
line, the strength increases in proportion to the electrical currents. In the Project, the currents will be 2.4 times as
large as those of the existing line, and the density will be 64 T, which is less than 200 T.

6.1.3 Corona Noise


According to the Previous Report, electric power utilities in the world propose the corona noise level of
50dB~58 dB as the target value for designing transmission line construction, and the corona noise level would be
same as the target value after the re-conductoring.
In the Project, the transmission line voltage and the height of the replaced conductors will be the same as those
of the existing line, and the diameter of the replaced conductor will also be almost same. Therefore the predicted
corona noise level will also be same as that in the Previous Report, and be less than or equal to the target value.

6.1.4 Radio Noise


According to the Previous Report, the radio noise level would not be much changed after the re-conductoring.
In the Project, the transmission line voltage and the height of the replaced conductors will be the same as those
of the existing line, and the diameter of the replaced conductor will also be almost same. Therefore the predicted
radio noise level will also be same as that in the Previous Report, and be same as the value of the existing line.

6.2 Review according to the Japan International Cooperation Agency (JICA) Guidelines for
Environmental and Social Considerations
6.2.1 Assessment of Environmental Checklist under JICA Guidelines
The assessment and suggested procedure for this project on the Environmental Checklist for Power
Transmission and Distributions in accordance with the JICA Guidelines is shown in Figure 6-1.

6-2

Figure 6-1 Assessment of Environmental Checklist under JICA Guidelines


Category

Environmental
Item

Confirmation of Environmental Considerations

Main Check Items

(Reasons, Mitigation Measures)

(a) Have EIA reports been already prepared in official process?

(a) Based on the categorisation of this project, an EIA report is not

(b) Have EIA reports been approved by authorities of the host country's

required.

government?

(b) Based on the categorisation of this project, an EIA report is not

(c) Have EIA reports been unconditionally approved? If conditions are imposed

required.

Environmental

on the approval of EIA reports, are the conditions satisfied?

(c) Based on the categorisation of this project, an EIA report is not

Permits

(d) In addition to the above approvals, have other required environmental

required.

permits been obtained from the appropriate regulatory authorities of the host

(d) Environmental permit and licence is not required for reconductoring

country's government?

project, but notification to Ministry of Environment and local state office

(1)

EIA

and

1 Permits and

is required.

Explanation
(a) Have contents of the project and the potential impacts been adequately

(a)

Stakeholder

consultation

will

be

performed

according

to

(2)

Explanation

explained to the Local stakeholders based on appropriate procedures, including

environmental regulations.

to

the

information disclosure? Is understanding obtained from the Local stakeholders?

(b) Any comments from stakeholders will be incorporated into project

(b) Have the comment from the stakeholders (such as local residents) been

requirements.

Local

Stakeholders

reflected to the project design?

Pollution

Control

Natural

Environment

(3) Examination

(a) Have alternative plans of the project been examined with social and

(a) The alternative plan, which is to build a new transmission line, will

of Alternatives

environmental considerations?

have greater environmental impact that a re-conductoring.

(a) Is there any possibility that soil runoff from the bare lands resulting from

(a) As this is a re-conductoring of existing transmission line, no additional

earthmoving activities, such as cutting and filling will cause water quality

impact on soil runoff is expected and no significant impact on water

degradation in downstream water areas? If the water quality degradation is

quality is expected. However, any water quality degradation issues will be

anticipated, are adequate measures considered?

countered with adequate measures.

(a) Is the project site located in protected areas designated by the countrys laws

(a) The reconductoring of the transmission line does not pass through any

or international treaties and conventions? Is there a possibility that the project

protected areas

(1) Water Quality

(1)
Areas

Protected

will affect the protected areas?

6-3

Category

Environmental
Item

(2) Ecosystem

Confirmation of Environmental Considerations

Main Check Items

(Reasons, Mitigation Measures)

(a) Does the project site encompass primeval forests, tropical rain forests,

(a) The project does not pass through ecologically valuable habitats.

ecologically valuable habitats (e.g., coral reefs, mangroves, or tidal flats)?

(b) The project does not pass through protected areas

(b) Does the project site encompass the protected habitats of endangered species

(c) There is no significant ecological impacts, however mitigated

designated by the countrys laws or international treaties and conventions?

measures will be implemented if impacts are found to be significant.

(c) If significant ecological impacts are anticipated, are adequate protection

(d) The project is a re-conductoring of an existing transmission line which

measures taken to reduce the impacts on the ecosystem?

would not disrupt migration routes or habitat.

(d) Are adequate measures taken to prevent disruption of migration routes and

(e) The project passes through watery areas but no negative impact to

habitat fragmentation of wildlife and livestock?

water quality has been observed. Appropriate mitigation measures will be

(e) Is there any possibility that the project will cause the negative impacts, such

identified for any negative impacts.

as destruction of forest, poaching, desertification, reduction in wetland areas,

(f) This project is a re-conductoring of existing transmission lines so there

and disturbance of ecosystem due to introduction of exotic (non-native invasive)

are no new developments required.

species and pests? Are adequate measures for preventing such impacts
considered?
(f) In cases where the project site is located in undeveloped areas, is there any
possibility that the new development will result in extensive loss of natural
environments?

Natural

Environment

(3)

Topography

and Geology

(a) Is there any soft ground on the route of power transmission and distribution

(a) No such soft ground has been observed along the transmission line,

lines that may cause slope failures or landslides? Are adequate measures

but any such issues will have appropriate mitigation measures in place.

considered to prevent slope failures or landslides, where needed?

(b) There will be minimal civil works required as this is an upgrade of the

(b) Is there any possibility that civil works, such as cutting and filling will cause

existing transmission line. However, any issues identified will have

slope failures or landslides? Are adequate measures considered to prevent slope

appropriate mitigation measures developed.

failures or landslides?

(c) Same as above

(c) Is there a possibility that soil runoff will result from cut and fill areas, waste
soil disposal sites, and borrow sites? Are adequate measures taken to prevent
soil runoff?

6-4

Category

Environmental
Item

(1) Resettlement

Confirmation of Environmental Considerations

Main Check Items

(Reasons, Mitigation Measures)

(a) Is involuntary resettlement caused by project implementation? If involuntary

(a) No involuntary settlement is required as the project does not require

resettlement is caused, are efforts made to minimize the impacts caused by the

additional land acquisition or right-of-way.

resettlement?

(b) Public consultation will be conducted to explain the project. No

(b) Is adequate explanation on compensation and resettlement assistance given

resettlement is required.

to affected people prior to resettlement?

(c) Same as above

(c) Is the resettlement plan, including compensation with full replacement costs,

(d) Same as above

restoration of livelihoods and living standards developed based on

(e) Same as above

socioeconomic studies on resettlement?

(f) Same as above

(d) Are the compensations going to be paid prior to the resettlement?

(g) Same as above

(e) Are the compensation policies prepared in document?

(h) Same as above

(f) Does the resettlement plan pay particular attention to vulnerable groups or

(i) Same as above

people, including women, children, the elderly, people below the poverty line,

(j) Same as above

ethnic minorities, and indigenous peoples?


4

(g) Are agreements with the affected people obtained prior to resettlement?

Social

(h) Is the organizational framework established to properly implement

Environment

resettlement? Are the capacity and budget secured to implement the plan?
(i) Are any plans developed to monitor the impacts of resettlement?
(j) Is the grievance redress mechanism established?
(a) Is there a possibility that the project will adversely affect the living

(a) During construction, the project may require temporary use of land

conditions of inhabitants? Are adequate measures considered to reduce the

below the transmission line. Changes to the electromagnetic fields is

impacts, if necessary?

expected as a result of the upgrading. However, these impacts are not

(b) Is there a possibility that diseases, including infectious diseases, such as HIV

expected to be significant and will be minimised.

(2) Living and

will be brought due to immigration of workers associated with the project?

(b) Adequate health and safety plans will be developed for this project

Livelihood

Are adequate considerations given to public health, if necessary?

during construction.

(c) Is there any possibility that installation of structures, such as power line

(c) No changes to the noise level is expected as a result of this project.

towers will cause a radio interference?

(d) No compensation is required since no right-of-way or land acquisition

If any significant radio interference is

anticipated, are adequate measures considered?

is required.

(d) Are the compensations for transmission wires given in accordance with the

6-5

Category

Environmental
Item

Confirmation of Environmental Considerations

Main Check Items

(Reasons, Mitigation Measures)

domestic law?

(3) Heritage

(a) Is there a possibility that the project will damage the local archeological,

(a) The project does not pass through any local archeological, historical,

historical, cultural, and religious heritage? Are adequate measures considered to

cultural or religious heritage.

protect these sites in accordance with the countrys laws?


(a) Is there a possibility that the project will adversely affect the local landscape?

(a) The project is an upgrade of existing transmission lines so the impact

Are necessary measures taken?

on local landscape is minimal.

(a) Are considerations given to reduce impacts on the culture and lifestyle of

(a) This project does not impact on ethnic minorities and indigenous

ethnic minorities and indigenous peoples?

people.

Indigenous

(b) Are all of the rights of ethnic minorities and indigenous peoples in relation to

(b) Same as above.

Peoples

land and resources respected?

(4) Landscape
(5)

Ethnic

Minorities

and

Social

Environment

(6)

Working

Conditions

(a) Is the project proponent not violating any laws and ordinances associated

(a) No laws associated with the working conditions of the country will be

with the working conditions of the country which the project proponent should

violated

observe in the project?

(b) Adequate health and safety measures will be developed during

(b) Are tangible safety considerations in place for individuals involved in the

construction and operation of the transmission line.

project, such as the installation of safety equipment which prevents industrial

(c) Same as above.

accidents, and management of hazardous materials?

(d) Appropriate measures will be taken to ensure that safety of individuals

(c) Are intangible measures being planned and implemented for individuals

and local residents are not violated.

involved in the project, such as the establishment of a safety

and health

program, and safety training (including traffic safety and public health) for
workers etc.?
(d) Are appropriate measures taken to ensure that security guards involved in the
project not to violate safety of other individuals involved, or local residents?
(a) Are adequate measures considered to reduce impacts during construction

(a) During constructions, environmental management and monitoring

(e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)?

plan will be in place to reduce any impact.

during

(b) If construction activities adversely affect the natural environment

(b) Same as above

Construction

(ecosystem), are adequate measures considered to reduce impacts?

(c) Same as above

(1)
5 Others

Impacts

(c) If construction activities adversely affect the social environment, are

6-6

Category

Environmental
Item

Confirmation of Environmental Considerations

Main Check Items

(Reasons, Mitigation Measures)

adequate measures considered to reduce impacts?

(2) Monitoring

(a) Does the proponent develop and implement monitoring program for the

(a) A monitoring program will be developed for potential impacts.

environmental items that are considered to have potential impacts?

(b) Same as above.

(b) What are the items, methods and frequencies of the monitoring program?

(c) Same as above.

(c) Does the proponent establish an adequate monitoring framework

(d) The monitoring system will be developed in line with regulatory

(organization, personnel, equipment, and adequate budget to sustain the

requirements in consultation with regulatory authorities.

monitoring framework)?
(d) Are any regulatory requirements pertaining to the monitoring report system
identified, such as the format and frequency of reports from the proponent to the
regulatory authorities?
Reference

to

(a) Where necessary, pertinent items described in the Road checklist should also

Checklist

of

be checked (e.g., projects including installation of electric transmission lines

Other Sectors
6 Note

Note on Using
Environmental
Checklist

(a) Not applicable

and/or electric distribution facilities).


(a) If necessary, the impacts to transboundary or global issues should be
confirmed, (e.g., the project includes factors that may cause problems, such as
transboundary waste treatment, acid rain, destruction of the ozone layer, or
global warming).

6-7

(a) Not applicable

6.2.2 Project classification according to JICAs Guidelines

(1) Category of this project


According to Appendix 3 of JICAs Guidelines, power transmission and distribution lines involving large-scale
involuntary resettlement, large-scale logging, or submarine electrical cables are listed as sensitive sectors and
would need to be classified into Category A. However, as this project consists of a re-conductoring of existing
transmission lines, there are no sensitive characteristics and neither does it affect any sensitive areas. Thus,
according to the Guidelines, this project can be classified into Category B. This needs to be further confirmed with
JICA upon environmental review.

(2) Environmental impact assessment


It is not necessary for Category B projects to submit EIA report.

6.3 Host countrys environmental regulations and standards


6.3.1 Outline of Environment-Related Laws and Regulations of Host Country
In Indonesia, the Ministry of Environment (MoE) takes charge of the general matters related to environment in
Indonesia. It is responsible for developing and implementing
management,

and is engaged

policies and

plans

regarding

environmental

in prevention of environmental pollution and damage, mitigation of serious

environmental impact, and restoration of environmental quality as a part of its duties. It is the central agency
responsible for environmental assessment and management.
Indonesia first introduced a system of Environmental Impact Assessment (EIA or AMDAL, Analisis Mengenai
Dampak Lingkungan Hidup) in 1986, and details of the AMDAL are mandated in Article 2 of Law Number
32/2009 on the Environmental Protection and Management (Environmental Law), the most recent law for
environmental protection. Since the enactment of the Environmental Law, Government Regulation 27 of 2012 on
Environmental Licences has made it mandatory for businesses to procure an Environmental Licence before
getting their business licence. Obtaining an Environmental Licence entails the preparation of an AMDAL or an
environmental monitoring and management plan (UKL-UPL), depending on the categorization of the project.
Public consultation is a requisite component of the AMDAL process and is embedded in Articles 22 and 26 of the
Environmental Law.
The EIA process is composed of the following major steps:
1. Public Notice and Consultation
2. Preparation of the Terms of Reference (KA-ANDAL)
3. Preparation of ANDAL, RKL and RPL
4. Approval of ANDAL, RKL and RPL
5. Approval of AMDAL documents

6-8

The format of the AMDAL documents is provided in Section 2.1b of MoEs Regulation No. 08/2006, which
consists of:
1.

Terms of Reference (KA-ANDAL)

2.

Analisis Dampak Lingkungan (ANDAL or EIA report)

3.

Rencana Pengelolan Lingkungan (RKL or Environmental Management Plan)

4.

Rencana Pemantauan Lingkungan (RPL or Environmental Monitoring Plan)

5.

Ringaksan Eksutif (Executive Summary)

Before beginning the EIA study, the project proponent needs to inform the relevant environmental impact
agency of the project. This approving environmental agency is dependent on the nature and location of the project.
Approval for the EIA may be granted at the central government level at MoE, or at the provincial level or district
level. The geographical boundaries for the project usually define the approving agency and for a transmission
project which crosses different provinces, the approval would usually lie with the central government (i.e. MoE).

Figure 6-2 shows the procedure of implementing environmental assessment in the scenario where EIA approval
is required.

6-9

Figure 6-2AMDAL Procedures

EIA Secretariat Technical Team and


Commission

Project Proponent

Approving agency

Public Notice and


Public Consultation
(10 working days)

ToR Review: 30 working days

Formulate ToR
(KA-ANDAL)

Administrativ
e Appraisal by
the Secretariat

Technical
Review by
Technical
Team

Decision on
ToR approval
by Head of
EIA
commission

Submit ToR for


review

Formulate ANDAL
and RKL-RPL

Submission of
application letter for
Environmental Licence
and ANDAL and
RKL-RPL review

ANDAL and RKL-RPL review: 75 working days,


including 10 days for public consultation

Administrativ
e Appraisal by
the Secretariat

Technical
Review by
Technical
Team

Public notice on Environmental


Licence Application

(Source: Ministry of Environment, 2012)

6-10

ANDAL
and
RKL-RPL
review by
EIA
commission

Recommen
d-ation

Public notice of
decision on
Environmental
Licence

Decision on
Environmental
Feasibility and issue
of Environmental
Licence

Ministry of Environment Regulation No. 5/2012 prescribes a list of projects and activities that require an
AMDAL.

For projects dealing with power transmission lines above 150 kV, this regulation stiupalates that an

EIA is required. Table 6-2 summarizes the details of the power projects that requires an AMDAL according to the
laws of Indonesia. In the case where a new power transmission line carrying 500 kV is installed, the AMDAL
procedure in Figure 6-2 above needs to be followed.

Table 6-2List of Power sector activities that require AMDAL


Activity

Criteria

Development of transmission network

> 150kV

Diesel, gas, coal fired power plants

100MW in one location

Geothermal power plant

55MW

Hydropower plant

Height:
Area:

15m
200ha

Capacity 50MW
Other types of power plants (solar, wind, biomass, etc.)

10 MW

(Source: MoE Regulation No. 5/2012)

As this project is to re-conductor existing transmission lines instead of installing new ones, it is considered that
its impact on environment is only minor, and that the full AMDAL procedure is not necessary. Land acquisition
and social resettlement are not required for this project, but attention must be paid to avoid damage to surrounding
vegetation during reconductoring. From PLNs experience, the AMDAL procedure during the 1990s for the
existing transmission line from Suralaya to Gandul, did not encounter any material issues.
In our discussions with MoE so far, modifications to an existing project with a valid environmental license need
not undergo the full AMDAL procedure. Only an amendment or update to the existing AMDAL and UKL-UPL is
necessary which drastically shortens the environmental approval process. In discussions with PLN Environmental
Sub-division, as the project involves only reconductoring in the existing right of way, the reconductoring project
for the Suralaya-Gandul line requires notification to MoE, together with the local office in the state of Banten.
Still, the necessity of the environmental research should be further examined in consultation with the host
government.

6-11

6.3.2 Details of Environmental Impact Assessment of the Host Country required for the
Project
The following are the details of contents in the AMDAL of the host country required for implementing a project
for constructing a new power transmission line carrying 500 kV.
Introduction of project
a) Project overview
This study is to perform an upgrade of the current transmission line using the current transmission line along the
Suralaya-Gandul 500kV line, as a measure against an electrical overload of the transmission line expected in
connection with the ambitious 35GW program, especially in the West Java area with plans for new power plants.

b) Project rationale
In line with the growing electricity demand and plan for 35GW of new power plants in Indonesia, the new
transmission line will help to develop greater access to electricity and enable the connection of new installed
power capacity in more efficient and environmentally friendly way.

c) Environmental policy
Since

the

purpose

of

this

project

is

to

perform re-conductoring the

transmission line,

the

impact towards the environment is minimized, but if there is an impact to the environment, the laws and
regulations of Indonesia will be adhered to.

d) Relevant regulations
Indonesia Law regulates the electrostatic magnetic intensity, corona noise, radio noise, but as said in the
previous section, all such issues lie within the regulated limits.
Items of research
While additional EIA submission would not be required for this upgrading project, typical scope of
environmental consideration is described as below.
a) Environmental impact

Climate

Air Quality

Water Quality

Land

Physical geology

Soil

b) Scope of ecological impact


The ecological impact shall be confirmed at the area of the project and will consider any Right-of-Way
encroachment, protected areas and flora and fauna. It covers the diameter of 30m from where the project is
6-12

implemented.

c) Scope of socio-economic impact


The study would confirm the current corona noise, radio noise, and the electrostatic magnetic impact on affected
persons, including any impact as a result of loss of livelihood as a result of Right-of-Way or land acquisition
required, and appropriate compensation measures.
Outline of research
a) Collection of data related to environmental impact
Climate:
Collect the data for climate, humidity, rainfall, atmospheric pressure, wind speed, wind direction for the past
10years and create a data file.
Air quality and noise:
Air pollutants and real measurement of noise are performed for the degree of air pollution at three places. It will
be analyzed based on the ambient air quality standards under Regulation No.41 of 1999, and noise standards
based on Ministry of Environment Decree No. 48/MNLHJ III/1996.

Table 6-3Government Regulation No.41 of 1999 on Ambient Air Quality Standards


Pollutant
PM10

PM2.5

O3

SO2

NO2

Monitoring Duration

Government Standard (mg/Nm3)

Annual Average

No annual standard

24 hour average

0.15

1 year

15 g/Nm3

24 hour

65 g/Nm3

1 year

50 g/Nm3

1 hour

235 g/Nm3

Annual average

0.100

24hour average

0.365

1 hour average

0.900

Annual average

0.100

24hour average

0.150

1 hour average

0.400

6-13

Table 6-4 MoE Decree No. 48/MNLHJ III/1996 on Noise Standards


One Hour Leg dB(A)
Category

Day

Night

Green Areas

50

Hospitals and Health Zone

55

Mixed residential, education and religious areas

55

Office and commercial

65

Government and public facilities

70

Recreation

70

Industrial areas

70

Water quality:
The water quality must be gathered from the surrounding land, a river, and a puddle and the following pollutants
are investigated. The result shall be compared with Government Surface Water Quality Standards under
Government Regulation No. 82 of 2001.

6-14

Table 6-5
No

Government Regulation No 82 of 2001 on Surface Water Quality Standards

Parameter

Unit

Class I

Class II

Class III

Class IV

10.00

25.00

50.00

100.00

2.00

3.00

6.00

12.00

BOD5

2.

DO

mg/l

3.

N-Nitrite

mg/l

0.06

0.06

0.06

(-)

4.

Sulfide (H2S)

mg/l

0.002

0.002

0.002

0.002

5.

Temperature

oC

Dev. 3

Dev. 3

Dev. 3

Dev. 5

6.

pH

6-9

69

6-9

5-9

7.

Electric Conductivity

mS/cm

8.

TDS

NTU

1000

1000

1000

2000

9.

NO3

mg/l

10

10

10

20

10.

PO4

mg/l

11.

SO4

mg/l

400

(-)

(-)

(-)

12.

Iron (Fe)

mg/l

0.30

(-)

(-)

(-)

13.

Manganese (Mn)

mg/l

0.10

(-)

(-)

(-)

14.

Copper (Cu)

mg/l

0.02

0.02

0.02

0.20

15.

Zinc (Zn)

mg/l

0.05

0.05

0.05

2.00

16.

Lead (Pb)

mg/l

0.03

0.03

0.03

1.00

17.

Cadmium (Cd)

mg/l

0.01

0.01

0.01

0.01

18.

Chromium

mg/l

0.05

0.05

0.05

1.00

19.

Oil & Grease

g/l

1,000

1,000

1,000

20.

Radiation Total

Bq/l

0.10

0.10

0.10

0.10

21.

Radiation Total

Bq/l

1.00

1.00

1.00

1.00

22.

Fecal Coliform

no/100 ml

100

1,000

2,000

2,000

23.

Total Coliform

no/100 ml

1,000

5,000

10,000

10,000

Notes:
Class I: water can be used for drinking and other uses that require similar water quality.
Class II: water can be used for infrastructure/water recreation facilities, the cultivation of freshwater fish, livestock, irrigating crops,
and other uses that require similar water quality.
Class III: water can be used for freshwater fish farming, animal husbandry, irrigating crops, and other uses that require similar
water quality.
Class IV: water allocation can be used to irrigate crops, and other uses that require similar water quality

6-15

Land use
Regarding the land for construction, the migration plan and transportation barrier should be
Bappeda

(Regional

Planning

Agency)

along

with

Area

discussed

with

Space Management Plan (RTRW) during the

construction period.
Physical geology:
The current height interval of the land and past data of the height interval shall be used to collect the materials
for the measurement of Physical geography and geology. The project shall be implemented using digital data of
geographical features.
Soil:
Pervasion of land accompanying the project execution and change of the degree of fertility are tested by
comparison to Land Observation Guideline (LTP, 1969) through a site survey and soil investigation. The
comparison will also take into consideration a map, a height interval, precipitation, and etc. The study is
conducted by using the boring method and soil testing method which includes the physical and chemical
characteristic of the soil which is based on Soil Characteristic Analysis Data Assessment Criteria in 1983 by
Land Research Centre.

b) Collection of data related to ecological impact


Flora:
To obtain data concerning types of flora in the activity plan area and its surrounding area, inventory carried
through a field investigation and creates a table. Data that are collected are then analyzed by using SDR method
(Summed Dominant Ratio).
Fauna:
A fauna observation is carried out using a survey method, whereas its data collection technique is carried out
using a point count data collection for the community of birds and a cruise method for mammals, amphibians, and
reptiles.

c) Collection of data related to socio-economic impact


The data is collected from government and private institutions or services that are related with the project
activities along with data which includes the total population, types of institution, economy, politics, various
social data and culture. But the primary data comes from the people who are actually living at the sites by
conducting a direct interview. At the same time a study will be carried out to determine the population density, sex
distribution rate, age distribution rate.

d) Collection of data regarding health of residents


Collection of data from the regional Public Health Centre and a hearing to the residents of the project area is
required. Also a study must be conducted for environment sanitation condition, health status, types of principal
6-16

diseases, epidemiologic prevalence and existing health service should be conducted.


Environmental research plan
a) Members of environmental research team
The following engineers should be hired to implement the environmental study.
- High tension electricity expert
- Air and noise quality expert
- Biologist
- Geologist
- Civil Expert
- Socio-economic & cultural expert
- Public health expert
- Environmentalist

b) Activities required for environmental research


PLN, who is in charge for the stable supply of electricity in Indonesia, is liable to conduct the increase in
capacity of the transmission line.

c) Activities conducted at research area


For re-conductoring transmission line, there is the need to obtain temporary land for the drum and engine. But in
result of our field study, temporary land can be obtained from the land below the existing Transmission Line. If
up-rating conductors are not used and constructing a new transmission line is
obtaining the Right-of Way

would be

used

as

an

alternative,

necessary. Therefore there are the merits in up-rating conductors.

Environment of research area (current situation)


As a result of the field study most of the land is farmland and mountains there are no need to obtain new land.
But in densely populated residential areas, temporary use of land can be chosen where it best fits the condition.
Some of the transmission towers pass through watery land, but no negative impact on water quality has been
reported so far. After re-conductoring, no negative impact to water quality would be expected as well.
On 17 Nov 2015, Study Team members visited a couple of transmission towers near dense residential areas and
watery areas (towers 223-225 and 212-213), selected as potential environmentally and socially sensitive spots
with accompany of officials of PLN Planning Division and P3B. However, no material issues affecting the
environment were discovered based on the observation described in Table 6-6. Figure 6-3 shows a transmission
tower near agricultural field.

6-17

Table 6-6 Observation near sensitive locations


Tower 223 225

Tower 212 213

Location category : Residential, surrounded

Location

category:

Slump.

None

of

by house and small scale farming area

residential house was visible around the

Pollution control :The transmission tower

towers.

223 225 does not pass through river or

Pollution

control

Although

the

stream; they are some other towers passing

transmission towers 212 213 are located

through but reportedly didnt have negative

in watery land, theres no report of

impact related to water quality.

negative impact related to water quality.

Natural environment: The transmission

Natural environment : The transmission

tower 223 225 does not pass through

towers 212 213 does not pass through

protected area, and no protected area has

protected area and no protected area noted

been seen around the tower.

around the tower.

Figure 6-3Transmission tower built in water near agricultural field along Gandul Balaraja
Transmission Line (Tower 212-213)

6-18

Environment of research area (forecast)

As mentioned above, there is no need to obtain temporary land. Table 6-7 shows the environmental impact to
this region.

Table 6-7

Environment Impact

Items
Environmental

Re-conductoring Line
Impact

The

current

Right

Before Construction

impact to the environment

Environmental

Impact

During Construction

of

Way

is available therefore there is no

Temporary space below the existing right-of-way under the

transmission line for the drum and engine for reconductoring is required.
New felling is not needed.

Environmental

Impact

During Operation

The

electric field intensity of the new conductor for

SuralayaGandul Line has an electric field intensity of 4.9kV/m, which


is within regulation limits.
Maximum magnetic field intensity is half the regulation.
There are only small changes to the Radio noise level and Corona
noise

level, therefore the increase to the impact to the environment is

small.
Environmental

Impact

Same as above

After Operation

6-19

Chapter7. Financial and Economic Feasibility


In order to ensure that the project is feasible on an economic and financial standpoint, an economic and financial
analysis of the project was conducted. The economic analysis will determine whether the project is feasible based
on comparison between other alternatives on the With and Without (= the alternative option) principle from
national economy point of view. The financial analysis determines whether the project provides sufficient
financial benefits to the project proponent given the amount of upfront capital investment required.

7.1 Capital Costs of Project


7.1.1 Construction Process and Implementation Period
As shown in Chapter 8, the construction process of this project takes 36 months from selection of consultant to
completion of operations including re-conductoring of power transmission lines and remodeling of substations.
The followings are the major operations included in the construction process.

Selection of consultant: 6 months

Selection of subcontractor (including PQ, preparation of bid documents, evaluation, contract


negotiation, etc.): 12 months

Re-conductoring (Suralaya-Gandul Line; including research, designing, procurement, installation,


etc.): 17 months

Remodeling of substations (3 substations of Suralaya, Balaraja and Gandul): 18 months

Completion of construction: 18 months after conclusion of contract

The economic analysis will be made inclusive of the one-year guarantee.

7.1.2 Capital Costs and Assumptions


(1)

Construction Cost

The construction cost to be used for economic and financial analysis includes the following costs in addition to
the total construction cost.

Cost of re-conductoring Suralaya - Gandul Line and remodeling related substations: US$107.8 million

Contingency cost: US$10.78 million (10% of the cost of re-conductoring)

Engineering cost: US$5.39 million (5% of the cost of re-conductoring)

Administration cost: US$10.78 million (10% of the cost of re-conductoring)

7-1

(2)

Terms and conditions of quotation

It is presupposed that this project will be initiated on the Japanese Soft Loan, and the quotation is given under
the terms and conditions below.

Construction process: As per [Figure 8-1]

Tax matters: It is assumed that this project will be exempted from custom duties and service tax
(Indonesian equivalent of VAT).

Price escalation: Price escalation will not be considered for both domestic and foreign currencies.

Cost of land acquisition and compensation: Such cost will not be considered as it is not required for
reconductoring project.

Contingency fund: 10% is included.

Payment terms are as follows.

Advance payment: 20%

Payment at piece rate: 70%

Payment at completion: 5%

Final payment at handover (assumed to be 1 year after completion): 5%

Tables 7-1 and 7-2 shows the details of construction cost and the year-by-year breakdown, respectively with a
break-down of the total capital cost by components.
Table 7-1Details of Construction Cost of redoncuctoring
Foreign

Local

Currency

Currency

(Million US$)

(Million US$)

Category

A
1

(Million US$)

Project Cost
Suralaya

Gandul

T/L

incl.

related

substations
Total of A.

Total

Project Cost

81.80

26.00

107.80

81.80

26.00

107.80

Contingency

Price Escalation (0%)

0.00

0.00

0.00

Physical Contingency (10%)

8.18

2.60

10.78

8.18

2.60

10.78

4.09

1.30

5.39

94.07

29.90

123.97

Total of B.

Contingency

Consulting Services

(5% of A)

Total of the Eligible Portion (A+B+C)

Administration cost (10% of A)

0.00

10.78

10.78

Land Acquisition & Compensation

0.00

0.00

0.00

Taxes (sales and custom duties)

0.00

0.00

0.00

Grand Total (D + E +F + G)

94.07

40.68

134.75

7-2

Table 7-2 Yearly Breakdown of Construction Cost of reconductorin


(Unit: US$1000)
Year

2017

2018

2019

2020

Total
Grand Total

FC

Items

LC

FC

LC

FC

LC

FC

LC

FC

LC

A. Project Cost
1

Suralaya - Gandul T/L incl. related substations

Total of A. Project Cost


B. Contingency

35,447

11,267

42,263

13,433

4,090

1,300

81,800

26,000

107,800

35,447

11,267

42,263

13,433

4,090

1,300

81,800

26,000

107,800
10,780

2,727

867

5,453

1,733

8,180

2,600

C. Consulting Services

818

260

1,636

520

1,636

520

4,090

1,300

5,390

D. Total Eligble Portion (A+B+C)

818

260

39,810

12,654

49,352

15,686

4,090

1,300

94,070

29,900

123,970

E. Administration Cost

2,156

4,312

4,312

10,780

10,780

F. Land Acquisition & Compensation

G. Taxes (sales and custom duties)

818

2,416

39,810

16,966

49,352

19,998

4,090

1,300

94,070

40,680

134,750

Grand Total

The yearly breakdown was prepared on the basis of the terms and conditions of quotation mentioned in 7.1.2,
construction process in Figure. 8-1, and construction cost in Table 7-1, while the following was taken into
consideration.

The re-conductoring of power transmission lines takes 18 months. Therefore, the construction cost
(including cost of remodeling the substations) of each year consists of the following :

for 2018, when the construction is to be launched, advance payment (20% of the total construction
cost) and 6 months of progress payment (6 months/18 months) for the period during which the
construction is performed were added;

for 2019, payment at completion (5% of the total construction cost) and 12 months of progress
payment (12 months/18 months) were added and

for 2020, final payment at handover (5% of the total construction cost) was entered.

The consulting cost was assumed to be composed of progress payment only. As the consulting period
extends over 30 months, the progress payment of each year was 6 months (6 months/30 months) in 2017,
and 12 months (12 months/30 months) in 2018 - 2019, respectively.

The administration cost was recorded each year in the same manner as the consulting cost was calculated.

7-3

7.2 Economic Analysis


7.2.1 General Approach and Methodology
The general approach to the economic analysis is conducted in the following procedures:

Identification and calculation of the economic cost and economic benefit of the project

Comparison between the economic cost and economic benefit

Calculation and evaluation of Economic Internal Rate of Return

Sensitivity analysis of the results of the above comparison and evaluation

To compare the economic cost and economic benefit for the entire period of the project life, a model based on a
cashflow analysis is developed where the future streams of economic costs and benefits are projected throughout
the life of the transmission project. In doing so, the Economic Internal Rate of Return (EIRR) can be calculated.
This is the return ratio that keeps the total amount of net present value of the economic cost (C) equal to the
economic benefit (B) that satisfies the formula B/C=1.
Conversely, we can also calculate the NPV of the economic costs and benefits based on a discount rate which is
representative of the opportunity cost of capital. Generally speaking, international financial institutions such as the
World Bank and Asian Development Bank set the discount rate (opportunity cost of capital) for developing
countries within the range between 8 and 12%. From the Previous Report, 10% was adopted as the criteria of
decision. In this analysis, the discount rate in Indonesia is assumed to be 10% according to
practices,

and

it

will

be

compared

with

the

EIRR

to

examine

the

international

the cost-effectiveness of the

project. The project is economically viable when the economic benefits outweigh the economic cost (B/C >1).

In this economic analysis, the "With and Without Principle" is applied, and the case where the proposed project
(re-conductoring of transmission lines and substation remodelling) is implemented (With) and the case where an
alternative plan (new construction of transmission lines and substations) is implemented (Without) are compared.
The Without scenario presents the Avoided Cost of the project, or the benefit of the proposed project as a result
of avoiding the alternative plan. The economic costs and benefits are assessed based on the information from the
technical analysis of the projects capital cost and expenditures during construction including physical contingency,
administration and consulting services as described above.

"With and Without" scenarios are defined as follows in this economic analysis:

With (Economic Cost) : Re-conductoring of the existing transmission lines to lines carrying increased
voltages in addition to remodeling of substations

Without (Economic Benefit)

: Construction of new 500 kV transmission lines having transmission

capacity equivalent to the increase of capacity this project provides.

7-4

7.2.2 Economic Benefit


According to the With and Without Principle, the economic benefit of this project is represented by the
construction cost of the alternative project. The alternative project refers to the construction of new 500 kV
transmission lines having transmission capacity equivalent to the increase of capacity this project provides. This is
the only alternative as the transmission network can only be upgraded through new transmission lines or by
re-conductoring. The economic benefit thus consists of the construction cost of new 500 kV transmission lines
having transmission capacity equivalent to the increase of capacity achieved by the re-conductoring, and the
operation and maintenance cost. However, the Study Team considers that building a new transmission line could
be very challenging as acquiring new land for the transmission line would be difficult due to densely populated
areas along the route.

The details of such costs as estimated by the Study Team are as follows:

(1) Construction cost of new 500 kV transmission lines


Suralaya - Gandul Section
The size of the conductor is decided so that the same capacity as in the case of re-conductoring can be
approximately secured. The followings are the details of the specifications:
- Voltage, 500 kV; the number of transmission lines, 2 lines; and total route length, 222 km
- Size and number of conductors, double circuit ACSR Zebra conductors (total transmission capacity with new
transmission line, 4,070 MW). Based on the past data of PLN, the construction cost is estimated at US$116.3
million.

(2) Land acquisition costs and right-of-way compensation for new 500kV transmission lines
As the new transmission line will need to acquire additional land for transmission towers and right of way
compensation, it is necessary to include such costs when estimating project costs. Based on a similar project for a
new 500kV transmission line in Central and West Java, the land acquisition and right-of-way compensation was
US$8.26 million for a 343km transmission line.
- Land acquisition and right-of-way compensation for new 500kV transmission line: US$ 2.68million

(3) Remodeling of Substations


Similar to the previous report, it is necessary to remodel the related substations to increase the substation
facilities due to the additional transmission lines.
- Suralaya - Gandul Section (Suralaya, Gandul and Balaraja Substation): US$24.2 million

(4) Annual operation and maintenance cost


Following the construction of new transmission lines and the related substations, the annual operation and
maintenance cost will increase to the degree of related capital and operation and maintenance costs. The increased
cost is included in the economic benefit.
Based on the similar cases in the other countries, the unit costs of operation and maintenance costs of the
7-5

transmission

lines and the

related substation facilities are

estimated

as

follows (estimated by the

Study Team):
- 500 kV transmission lines: US$1,000/km/year
- 500 kV substations: US$340,000/substation/year

The operation and maintenance cost of the increased substation bays only is included in the economic benefit
(estimated to result in 20% increase).

As a result, the annual total operation and maintenance costs are estimated as follows:
- Suralaya - Gandul Line: US$1,000/km/year/line110km2 lines =
- Substations: US$340,000/substation/year20%3 substations =

US$222,000/year

US$204,000/year

As the construction of new transmission lines requires acquisition of land and compensation, and a longer
procurement period, it is assumed that the operation will be launched in 2021, compared to the proposed upgrade
project assuming the year of operation as 2020. The construction cost of the new transmission line is shown in
Table 7-3.

Table 7-3 Economic benefit of construction of new transmission line (alternative option)
(Unit: US$1000)
Year

2018

2019

2020

2021

Total
Grand Total

Items

FC

LC

FC

FC

LC

LC

FC

LC

FC

LC

A. Project Cost
1

Suralaya - Gandul T/L incl. related substations

Total of A. Project Cost

43,723

6,673

52,132

7,957

5,045

770

100,900

15,400

116,300

43,723

6,673

52,132

7,957

5,045

770

100,900

15,400

116,300
11,630

3,363

513

6,727

1,027

10,090

1,540

C. Consulting Services

1,010

154

2,020

308

2,020

308

5,050

770

5,820

D. Total Eligble Portion (A+B+C)

1,010

154

49,106

7,494

60,879

9,292

5,045

770

116,040

17,710

133,750

E. Administration Cost

2,326

4,652

4,652

11,630

11,630

F. Land Acquisition & Compensation

2,680

2,680

2,680

G. Taxes (sales and custom duties)

1,010

5,160

49,106

12,146

60,879

13,944

5,045

770

116,040

32,020

148,060

B. Contingency

Grand Total

7.2.3 Economic Cost


The economic cost is represented by the construction cost of this project (more specifically, direct construction
cost consisting of labor cost including pay for both skilled and unskilled workers, fuel cost, construction
machinery cost, equipment cost, compensation cost, engineering cost, administration cost, contingency, etc.).
Local currency and foreign portion of the project is derived from cost estimates from a local EPC contractor.
Local currency primarily consists of labour costs and foreign currency portion is for foreign equipment. For the
purposes of calculating economic cost, value added tax and corporate income tax are excluded because they are
transferred to the governments budget.
The

total

economic

costs

summarized

in

Table

7-4

are

compiled

by collecting construction

cost, escalation, contingency, consulting cost, administration cost and land acquisition cost on the basis of the
yearly breakdown shown in Table 7-2.
7-6

Table 7-4

Economic Cost of the Project


(Unit: 1,000US$)

Year

2017

2018

2019

2020

Total

Economic

3,234

56,776

69,350

5,390

134,750

In implementing the economic evaluation of the project, the operation and maintenance cost of transmission
lines and substations is usually included in the economic cost. However, as this project proposes re-conductoring
of the existing transmission lines and replacement of equipment in the substations, the operation and maintenance
cost will not change as the quantity of equipment remains the same after re-conductoring. In other words, it is
assumed that the operation and maintenance cost will be the same before and after the re-conductoring. Therefore,
it was not included in the economic cost.

7.2.4 Project Life and Operation Period


The economic cost and economic benefit are calculated over the entire period of the project life. The first year of
the project life refers to the year when the first portion of the cost for the project is paid27, and the last year refers
to the year when the operation and maintenance of the constructed project facilities are discontinued.
The operation period of the power transmission lines to be constructed in this project is assumed to be 30 years
after the total construction period of 4 years (from 2017 through 2020).

7.2.5 Result of economic evaluation


The evaluation of cost-benefit of the project is performed by using the cash flow analysis of the economic cost
and economic benefit identified above and shown in Table 7-5 below. The results of the calculation are shown in
Tables 7-5 and 7-6.
In the economic analysis, the benefit-cost ratio (B/C ratio) indicates the result of comparison between benefit
and cost converted into net present values, while the benefit-cost difference (B-C) shows the difference between
them as also represented in net present values.

Economic Costs

Economic Benefits

Cost incurred in implementing this project

Avoided construction cost of new 500 kV

(including re-conductoring cost, remodeling cost

transmission lines as an alternative to this project

of

+ remodeling cost of related substations +

related

substations,

construction-related

contingency, consultant cost, administration cost

operation and maintenance cost

and land acquisition cost) + operation and


maintenance cost

27

In this project, the first year is assumed to be the year when the consulting services are started.
7-7

The Economic Internal Rate of Return (EIRR) serves as an index to determine the economic feasibility of the
project. EIRR is obtained by the following formula:
=

=1

=1

(1 + )
(1 + )
- T: The last year of the project life
- Ct: Cash flow of annual economic cost in the t-th year in the project life
- Bt: Annual benefit yielded from the alternative plan in the t-th year
- R: Economic internal rate of return

As shown in Table 7-5 and Table 7-6 below, EIRR of this project is calculated at 12.58% in the base case.

7-8

Table 7-5

Results of EIRR Calculation

Economic Analysis
EIRR=

12.58%
(Uni ts : USD'000)

Opera ti ng
yea rs

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Cos t - Reconductori ng Project


Yea r

Ca pi ta l expendi ture

2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Tota l :
Di s count ra te: 10%
NPV ca l cul a ti ons

O&M

Tota l (A)

Ca pi ta l expendi ture

O&M

Tota l (B)

Net Benefi t
(B) - (A)

3,234
56,776
69,350
5,390
-

3,234
56,776
69,350
5,390
-

6,170
61,252
74,823
5,815
-

426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426

6,170
61,252
74,823
6,241
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426

(3,234)
(50,606)
(8,098)
69,433
6,241
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426
426

134,750

134,750

148,060

12,354

160,414

25,664

NPV of Cos t:

Benefi t a nd Cos t Ra ti o (B/C):


Benefi t a nd Cos t Di fference (B-C):
O&M cos t for a l terna ti ve project
For 500kV S/S:
For 500kV T/L:

Benefi t - New Tra ns mi s s i on Li ne

116,212

NPV of Benefi t:

119,417

1.028
3,205

204,000 US$/yea r
222,000 US$/yea r

Table 7-6

Results of Cost-Effectiveness Evaluation

Case

EIRR (%)

B/C Ratio

B-C (1000 US$)

Base Case

12.58%

1.028

3,205

As mentioned above, international financial institutions such as the World Bank and Asian Development Bank
generally set the discount rate (opportunity cost of capital) for developing countries within the range between 8%
and 12%, and 10% was adopted as the criteria of decision.
As the EIRR of 12.58% obtained above exceeds 10%, the assumed discount rate (opportunity cost of capital) of
Indonesia, it can be concluded that this project is feasible from an economic standpoint.

7-9

7.2.6 Sensitivity analysis of economic results


Since fluctuations in prices (prices of construction materials and machinery, electricity to purchase and sell, etc.)
are expected to be involved in this project due to the economic circumstances of Indonesia, sensitivity analysis
was performed on total of 8 cases where the economic cost increases by 5% or 10% and where the economic
benefit deceases by 5% or 10 %, in addition to the base case.
Table 7-7 shows the results of the sensitivity analysis.

Table 7-7Results of Sensitivity Analysis on EIRR


Benefit
Base Case

-5%

-10%

Base Case

12.58%

8.03%

4.17%

+5%

8.10%

4.35%

1.36 %

+10%

4.52%

1.56%

-0.75 %

As shown in the table above, if both the cost and benefit are in the base case, EIRR is 12.58% and this project is
considered feasible. If the benefit deceases or the cost increases by 5% from the base case, EIRR reduces to about
8%.

7-10

7.3 Financial Analysis


7.3.1 General Approach and Methodology
The financial analysis is performed to assess the extent of financial benefits that the project is expected to yield.
It evaluates the project from the standpoint of financial profitability on the part of the project proponent. It is used
to check whether the project proponent can manage the project in a financially independent manner.
The investment in the project is evaluated in terms of the market price, and the invested capital is the "financial
cost". The revenue yielded from the project is evaluated also in terms of the market price, and this profit is the
"financial benefit".
The financial cost and financial benefit for the entire period of the project life are projected by analyzing the
cash flow of the project. The future stream of cash flows from the project is discounted to its present value and the
Financial Internal Rate of Return (FIRR) and Financial Net Present Value are calculated. The FIRR is compared
against the opportunity cost of capital in the market, which is assumed to be the prevailing domestic interest rate.
In the present analysis, the financial benefit and financial cost constitute the following:

Financial benefit: Wheeling income derived from the project in connection with the transmission and
substation facilities constructed in this project

Financial cost: Cost incurred in the construction and operations of this project

7.3.2 Financial Benefit


The financial benefit of this project is the wheeling income that is generated by the implementation of this
project. By implementing this project, increase in transmitting power flow enhances the profit from gained by
PLN as it can increase electricity supply and hence, revenue and profits. This benefit can be calculated from the
wheeling revenue generated by the transmission line. In this analysis, this increase in profit is assumed to be the
financial benefit.

(1) Annual transmitting power flow


The annual transmitting power flow of the transmission lines subject to this project is assumed to be the values
shown in Table 7-8 as calculated on the basis of the power flow, load factor and available factor.

Table 7-8Annual Transmitting Power Flow


Power Flow
(MW)

Suralaya - Gandul

4,120

Load Factor 28
(%)

70%

Available
Factor

29

Annual Transmitting
Power Flow

(%)

(MWh)

35%

8,842,300

(Source: The Study Team)

28
Load factor represents the ratio of the average to the maximum electric power, and in this analysis, the average value of the
power plants was used.
29

Available factor represents the actual operating ratio of the facilities, and typical value for main
transmission lines, 35%, was used in this analysis, which is the same as the Previous Report.
7-11

(2) Purchase and sales price of electricity


In a de-regulated market with an independent transmission operator, the revenue of the power transmission
company corresponds to the transmission charges, which is usually the difference between the sales price to the
power distributing company and purchase price from the power producing company. In Indonesia,
power

producing

power distribution

company

is

separated

divisions functions are

from

PLN

incorporated

as

in the

subsidiaries,

power

though the

transmission

and

same company.

In discussions with PLN, PLN was not able to provide a unit wheeling charge. In this analysis, the financial
benefit to PLN was calculated on the basis of the difference between the cost of electricity production and the
revenue received from electricity sales.

In December, PLN recently awarded the Java-7 project to Shenhua Energy as the winning bidder. It is
understood that Shenhua Energy submitted a very competitive tariff rate of around 5 UScents/kWh. As PLN
would be purchasing electricity from the Java-7 project at this tariff, USD 50/MWh is taken as the purchase price
of electricity from PLN in this region.
According to the Public Service Obligation (PSO), PLN will receive a subsidy equivalent to a premium over its
total operating cost. This margin over the basic cost of electricity production is taken to be the unit revenue
(inclusive of subsidies) received in electricity sales. In 2014, this margin was 7%30. We have assumed that the
average margin that PLN will continue to earn total revenues at an assumed 5% margin over its costs of electricity
supply, which has been the historical basis for the PSO obligation.

The derivation of the Unit Wheeling income based on the above analysis is as follows:

Average cost of electricity production

USD 50.00 /MWh

Assumed margin

x 5%

Unit Wheeling income

USD 2.50 /MWh

(3) Financial Benefit to PLN


The benefit to PLN is calculated by the following formula.

(Annual Financial Benefit) = (Annual transmitting power flow) x (unit wheeling price)

Table 7-9 shows the annual wheeling income. It is assumed that the wheeling charge will be incurred starting
from 2023, the year when the operation of the transmission lines subject to this project is launched.

30
According to PLN Annual Report in 2014, PLN receives electricity subsidies from the government. The electricity subsidy is
set based on the negative difference between the average sales price minus Basic Cost of Electricity for each tariff category. This
also includes a margin above the cost of supplied electricity. Based on the 2014 Approval Letter of Budget Performance List, the
electricity subsidy includes a 7% margin above the cost of supplied electricity.

7-12

Table 7-9 Annual Wheeling Income


Power

Load

Available

Annual

Wheeling

Wheeling

Flow

Factor

Factor

Transmitting

Price

Charge

(MW)

(%)

(%)

Power Flow

(US$/MWh)

(1,000US$)

2.50

22,106

(MWh)
Suralaya - Gandul

4,120

70%

35%

8,842,300

(Source: The Study Team)

7.3.3 Financial Cost


The financial cost is represented by the construction cost of this project (more specifically, direct construction
cost consisting of labor cost including pay for both skilled and unskilled workers, fuel cost, construction
machinery cost, equipment cost, compensation cost, engineering cost, administration cost, contingency, etc.). It is
assumed in this analysis that interest during construction and price escalations are not taken into consideration.
Details of the financial cost are based on the technical analysis presented in the earlier sections of this report.

The financial cost corresponds to the total construction cost of this project as shown below.

(1) Construction cost (US$134.75 million)


The construction cost consists of direct construction cost including labor cost for both skilled and unskilled
workers, fuel cost, construction machinery cost, equipment cost, compensation cost, engineering cost,
administration cost, etc. and contingency related to technical aspects of the project.

(2) Value added tax and corporate income tax (US$0)


It is assumed in this analysis that this project is exempted from value added tax and corporate income tax.

(3) Interest during construction (US$0)


Interest during construction is not considered in the evaluation of this financial analysis. Table 7-10 shows the
financial cost calculated on the basis of the above.

Table 7-10 Financial Cost


(Unit: 1,000US$)
Year

2017

2018

2019

2020

Total

Financial

3,234

56,776

69,350

5,390

134,750

As in the case of the economic cost, annual operation and maintenance cost of the power transmission lines and
the related substations are considered in the analysis.

7-13

7.3.4 Project Life and Operation Period


As mentioned in the economic analysis section, the operation period is assumed to be 30 years after the total
construction period of 4 years (from 2017 through 2020).

7.3.5 Results of Financial Evaluation


The financial evaluation the project is performed by using the projected cash flows of the financial cost and
financial benefit examined above. The results of the calculation are shown in Tables 7-11 and 7-12.

In the financial analysis, the NPV of the project is calculated using a discount rate of 10% which is assumed to
be the cost of capital. The NPV is a measure of the net financial benefits to the proponent in terms of opportunity
costs of money. If the value is greater than zero indicates, it means that the project is financially viable. The
Financial Internal Rate of Return (FIRR) serves as a major index to determine the financial feasibility of the
project by comparing it against the cost of capital. FIRR is obtained by the following formula:
=

=1

=1

(1 + )
(1 + )
- T: The last year of the project life
- C f t: Cash flow of annual financial cost in the t-th year of the project
- B f t: Cash flow of the annual benefit (increase in the sales of electricity) in the t-th year of the project
- R f: Financial internal rate of return

Table 7-11 Results of Financial Evaluation

Case

FIRR (%)

NPV (US$1000)

Base Case

14.31%

45,359

As a result of calculation, the Financial Internal Rate of Return (FIRR) of this project was calculated at 14.31%.
The Financial Internal Rate of Return (FIRR) of this project, 14.31% is slightly higher than the market interest
rate of ordinary commercial banks in the Indonesian financial market (12.0%), allowing us to conclude that this
project is financially feasible.
Our view is that the FIRR stated above exceeding the market interest in Indonesian market in this simulation
does not necessarily guarantee that there are profitable environment for private entities. The reasons is that it is
very common not only in Indonesia but also in other nations that stable supply of electricity by the timely
construction, reconductoring and regular operation and maintenance of transmission lines and related facilities is
indispensable for securing the healthy lives of people and stable operation of the companies in the regions. Also,
considering the nature of the transmission line business, in general, huge initial cost in construction or
reconductoring together with collection of the investment on wheeling fees as revenue for long periods put the
7-14

entities involved at big potential business risk, such as political, environmental, and financial risk.
Furthermore, the Indonesian government recently proposed the new policies in driving the investment by private
sectors into power generation segment and alternatively in reallocating national resources such as PLN on
transmission and distribution business. As their standpoint, we strongly recommend that the Indonesian
government needs to take a strong initiative in investing in the transmission line business as the national project
with the government's fund from the view of securing the sustainability of the social infrastructure and the stable
supply of energy.

Table 7-12 Results of FIRR Calculation


Financial Analysis
FIRR=

14.31%
(Uni ts : USD'000)

Opera ti ng
yea rs

Cos t
Yea r

Ca pi ta l expendi ture

2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

3,234
56,776
69,350
5,390
-

Revenue
O&M
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242

Tota l :
Di s count ra te: 10%
NPV ca l cul a ti ons
Benefi t a nd Cos t Ra ti o (B/C):
Benefi t a nd Cos t Di fference (B-C):
Wheel i ng Energy (MWh):
Wheel i ng uni t pri ce (US$/MWh):
O&M cos t
For 500kV S/S:
For 500kV T/L:
T/L l ength:

Tota l (A)

Wheel i ng Energy (MWh)

Wheel i ng Income
(USD/MWh)

8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344
8,842,344

2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50
2.50

3,234
56,776
69,350
6,632
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
1,242
172,010

NPV of Cos t:

NPV of Benefi t:

125,888

1.368
46,335
8,842,344 MWh
2.50 US$/MWh

340,000 US$/s ubs ta ti on/yea r


1,000 US$/km/yea r
220 km

7-15

Tota l (B)

Net Ca s hfl ow
(B) - (A)

22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106
22,106

(3,234)
(56,776)
(69,350)
15,474
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864
20,864

663,176

491,166

172,223

7.3.6 Sensitivity Analysis from a Financial Standpoint


Fluctuations in prices of construction materials and machinery are expected to be involved in this project due to
the economic circumstances of Indonesia, and the financial benefit is also considered to be affected by such
instability. Considering this situation, sensitivity analysis was performed on total of 8 cases where the financial
benefit deceases by 5% or 10 % and where the financial cost increases by 5% or 10%, in addition to the base case.

The results of the sensitivity analysis are as follows.

Table 7-13Results of Sensitivity Analysis on FIRR


Benefit
Cost

Base Case

-5%

-10%

Base Case

14.31%

13.54%

12.75%

+5%

13.57%

12.83%

12.07%

+10%

12.90%

12.18%

11.44%

As shown in Table 7-13, FIRR values exceed the market interest rate of Indonesia if the prices fluctuate within
the range of around 5%, and it can be concluded that the project is feasible from a financial standpoint.

7.4 Conclusion of Financial and Economic Analysis


7.4.1

Economic Analysis

From the economic analysis, EIRR=12.58% and B/C=1.028 were obtained. It can be concluded that the project
is highly feasible from an economic standpoint.

7.4.2 Financial Analysis


From the financial analysis, FIRR=14.31% were obtained. This project is also considered feasible from a
financial standpoint.

7.4.3 Comparison between reconductoring and new transmission line


Between the proposed reconductoring and the alternative project for a new transmission line, the reconductoring
project is more attractive for various reasons. The proposed reconductoring project does not require land
acquisition or right-of-way access as existing transmission towers are used. This reduces the social and
environmental impact and allows the project to be completed in a shorter timeline (2020 compared to 2021 for
new construction).
Furthermore, reconductoring does not lead to an increase in O&M costs as the number of equipment and circuits
remain the same. For a new transmission line, additional O&M costs will be incurred due to an increase in the
number of circuits and more substation equipment is required. Compared between the two options, reconductoring
7-16

project enables the use of higher quality and more advanced conductor technology, utilizing XTACIR instead of
ACSR conductors. The proposed reconductoring project also requires lower capital investments of USD134.75mil
instead of USD148.06mil. Table 7-14 shows a summary of the comparison between the reconductoring and new
transmission line.

Table 7-14Summary of reconductoring and new transmission line


(Proposed) Reconductoring project

(Alternative) New Transmission Line

Does not require land acquisition or

Land acquisition and right-of-way access

right-of-way

will be difficult, especially in densely

Does not lead to increase in O&M costs

populated regions along the route

Utilizes

more

advanced

XTACIR

conductor technology

Lower total project costs

New transmission line requires higher


O&M costs

Conventional ACSR conductors can be


utilized

7-17

More expensive total project cost

Chapter8. Project Implementation Schedule


8.1 Entire Schedule
The implementation period in case this project is performed as a yen credit business, from the agreement
between governments of two countries to selection of international consultants and the preparation of EPC
(Engineering, Procurement, and Construction) will require 18 months. For re-conductoring work of Suralaya
Gandul line and replacement of substation facilities, 18 months. Total implementation period is thus assumed to
be 36 months.
Figure 8-1 shows the project implementation schedule from the agreement of the government of two countries
to the completion of the project in the form of a bar chart. This implementation schedule will be revised as
necessary due to changes in related conditions.

8.2 The schedule to the EPC agreement


After loan agreement is reached between the two countries, the primary work to be completed before the EPC
full turnkey contracts are concluded and the expected time required are as follows.

Selection of Consultant and Conclusion of Consultant Contract

6 months

Preparation of EPC Tender Documents

6 months

Preparation of Bids

Evaluation of Bids, Selection of EPC Contactors, Conclusion of contracts

3.5 months

Total (including duplication)

8 months
18 months

8.3 Construction schedule


The implementation schedule for re-conductoring of transmission lines and replacement of substation facilities
are as follows.

Re-conductoring of Suralaya Gandul line

17 months

Replacement of substation facilities

18 months

Total (including duplication)

18 months

8-1

8-2

3.2

12 months
4 months

4) Installation (Stringing)

5) Testing and Commissioning

4 months
7.5 months
8.5 months
12 months
8 months

1) Design and Approval

2) Manufacturing Switchgear

3) Transportation (Shipping)

4) Installation (Replacement)

5) Testing and Commissioning

18 months

10 months

3) Transportation (Shipping)

Replacement of Substation Facility

4 months
12 months

17 months

18 months

2) Manufacturing Cable and Hardware

Uprating for Suralaya - Gandul (2circuits)

3.1

1 month

1 month

1 month

2 months

3 months

2 months

1.5 months

3 months

3 months

12 months

0.5 month

0.5 month

0.5 month

1 month

1.5 months

1 month

0.5 month

1.5 months

1.5 months

6 months

Duration

1) Design (site investigation, detail survey and approval)

Construction Stage

3.

Preparation of PQ & Technical Specification

2.2

Signing on Construction Contract

Detail Design incl. Feasibility Study Review and Power System Analysis

2.1

2.9

Consulting Services

JICA's Concurrence of Contract

JICA's Concurrence of Consultant Contract

3.9

2.8

Signing Consultant Contract

3.8

Negotiation of Contract

JICA Approval of Evaluation of Consultant

3.7

2.7

Evaluation of Consultant Proposal

3.6

Tender Evaluation

Proposal Submission by Consultants

3.5

2.6

Insurance of L/I to Short-listed Consultants

3.4

Tender Period

JICA Concurrence to TOR, Short-List, L/I

3.3

Preparation of Tender Documents (incl. JICA Concurrence)

Preparation of TOR, Short-List, L/I

3.2

2.5

Invitation of Expression of Interest

2.4

Selection of Consultant

3.1

PQ Evaluation

Signing of Loan Agreement

2.3

Pledge

Scope / Events

No.

Draft Implementation Schedule


0

2017

10

11

12

13

14

15

16

17

19

2018

18

20

21

22

23

24

25

26

27

28

29

31

2019

30

32

33

34

35

36

Figure 8-1 Project Implementation Schedule

Chapter9.

Advantages of Japanese Enterprises in Technologies and


Financing Options for the Project

9.1 Comprehensive Advantage of Japanese Enterprises in Technologies


9.1.1 International Competition and Possibility to obtain this Contract by Japanese
Entities
Invar type of conductor, XTACIR/AC, was invented and developed in Japan, and three Japanese manufacturers
have produced the conductor. The extra thermal-resistant aluminum alloy wire (so-called XTAL) requires
manufacturing know-how, which cannot be easily imitated. At present, there seem to be no manufacturers of the
wire in countries other than Japan, and therefore the Japanese manufactures have high possibilities to win the
order.
As for the hardware to fix the up-rating conductor, there are several manufacturers in Asian countries who can
produce the suitable materials with a certain quality level. Those materials can be applied to XTACIR/AC, and the
Japanese manufacturers have no superiority.
The replacement works, Cradle Block Method, was developed in Japan, where the conductor erection works
have been frequently conducted in densely populated areas. Therefore Japanese contractors have extensive
experiences and international competitiveness in the method.

9.1.2 Possible Materials Supplied from Japan and their Relevant Cost
The up-rating conductor may be supplied from Japan, whose assumed cost for Suralaya - Gandul line is listed in
Table 9-1.

Table9-1 Possible materials supplied from Japan and the relevant cost
Material
XTACIR/AC
230mm2

Quantity

Assumed cost (Million USD)

2,800 km

60

(Source: The Study Team)

9.1.3 Necessary Countermeasure to Promote securing of the Contract by Japanese


Entities
As aforementioned, there seem to be no manufacturers of the wire, XTAL, in countries other than Japan.
However manufacturers with little supply experiences may supply the low-quality conductors. Accordingly, from
the viewpoints of ensuring the quality, it is important to require all manufacturers to have their supply experiences
more than, for example, 15 years, and this condition will guide the secure promotion of the Japanese products.
9-1

9.2 Financing Options for the Project


9.2.1 Overview of Transmission Line Financing in other countries
In many developed economies with a well-established electricity market, the transmission network owner and
operator is separated from the electricity generation and retail business, such as in the United Kingdom, United
States and Australia31. The electricity transmission business remains financially sustainable through effective
regulation to provide a balance between incentivising new transmission network investments and ensuring
affordable transmission costs. In the UK, the transmission networks are regulated by Ofgem (Office of gas and
electricity markets) and in Australia, the Australian Energy Regulator (AER) determines cost recovery
mechanisms for operating and investing in the electricity transmission network32.
With certainty of returns, there can be more investment by the private sector. Therefore, it is common for
transmission network operators to raise financing on commercial terms and to include private sector involvement
in these markets. For example, in the UK, National Grid raises corporate bonds and bank loans to finance its
projects. In addition, on January 2016, the California Independent System Operator managed to successfully
tender out a transmission project to LS Power. LS Power will build, own and operate a 97km 500kV transmission
line in Nevada. LS Power will fund the USD133million project through a 50:50 debt-to-equity structure.
However, in many less developed economies within South-East Asia where transmission business is still
integrated within state-owned electricity utilities, there is still reliance on state funding and development
assistance. In 2014, state-owned Electricity Generating Authority of Thailand was dependent on government
funding of US$515million to fund new power plants and transmission lines. In 2013, National Power
Transmission Corporation of state-owned lectricit du Vietnam (EVN) received a concessional loan of 75
million from Agence Francaise Developpement (AFD) to fund the electricity transmission sector.
While private sector involvement is possible, the timeline for completion can be lengthy. For a transmission line
between Cambodia and Thailand, the project managed to be developed on a public-private partnership (PPP) basis.
Although the power purchase agreement (PPA) was signed in 2002, the concession agreement was only awarded
in 2005 and loan agreements for the transmission line were finally signed in 2008. So far, this has been the only
PPP project for transmission line in the region.

9.2.2 Overview of Financing in the Indonesian Power Sector


In the transmission sector, PLN raises financing for transmission lines through various means such as
government loans, domestically syndicated commercial loans and bond issues. In the 2010 FTP1 (Crash program
1) to build 10,000MW of power plants and related transmission lines, PLN obtained 85% of funding requirement
from bank loans fully guaranteed by the government and 15% from PLN internal funds. PLN managed to raise
bank loans of USD116million in foreign currency and USD4.8million in local currency to develop the electricity
transmission network in 2010.

The foreign currency loans were raised from a consortium of local state banks

Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and private lender Bank Centra Asia, with a 100%
government guarantee. Besides bank loans, PLN funds transmission projects through state budget, internal funds,
31

For example, in the UK, National Grid owns and operates the electricity transmission network and does not generate or sell
electricity.
32
See AER Final Decision on Trans Grid transmission determination for the 2015-2018 period.

9-2

foreign two-step loans, bank loans and corporate bond issues. Multilateral development banks are also heavily
involved in the transmission sector given the nature of transmission infrastructure as a public facility to ensure
stable power supply and a key infrastructure to supporting Indonesias electricity demand growth. Banks such as
World Bank and the Asian Development Bank have been actively investing in the transmission sector in the past
few years, providing both technical assistance and financing.
More recently, Germanys development bank, Kreditanstalt fr Wiederaufbau (KfW) has also committed to offer
loans of up to US$2.5 billion to Indonesia to develop renewable energy and transmission projects in Indonesia33.
As the 8th largest shareholder in the China-led Asian Infrastructure Investment Bank (AIIB) with an investment of
US$672.1 million, Indonesia is reported also to expect the AIIB to play a larger role in the power sector for both
power plants and transmission infrastructure whereas actual operation of AIIB needs to be monitored34. A list of
recent transmission projects funded by multilateral banks is shown in Table 9-2. In its 2014 annual report,
two-step loan comprised 28% of total outstanding long-term loans and bonds.

33

The Study Team interviewed the representative of KfW Jakarta on November 19th 2015. It also interviewed with the
reprensetative of ADB Jakarta on November 12th 2015.
34
Finance Minister Bambang Brodjonegoro cited that the AIIB would need to shorten decision making process as long project
approvals process for ADB (half a year) and World Bank (one year) has held up projects. South China Morning Post, 30 June 2015,
Indonesia to push for AIIB to finance power projects

9-3

Table 9-2: Transmission projects by development banks


Year

Project Name

Agency

Description

Loan

Interest

Repayment

Grace

Amount

Rate

Period

Period

(year)

(year)

(million
USD)
2015

Electricity

Asian

Improve

600

Grid

Development

existing

Strengthening

Bank (ADB)

transmission

Sumatra

and

Program

distribution in

20

20

15

21

7.5

24.5

Sumatra
2013

220km

Asian

Interconnection

Java-Bali

Development

between

Java

Transmission

Bank (ADB)

and

Bali

West

ADB

Kalimantan
Power

LIBOR +
0.60%

islands

Line
2013

224

Grid

Cross

border

high

voltage

transmission

Agence

Strengthening

Franaise

Project

Dveloppement

West

(AFD)

Kalimantan

de

line

49.5

LIBOR +
0.60%

49.5

between

EURIBOR
+ 0.30%

and Sarawak
2013

Indonesia

World Bank

Rehabilitation

325

LIBOR

Second

and upgrade of

based

Power

existing

IBRD

Transmission

construction of

Variable

Development

new

Spread

Project

substations

and

in

Loan

Indonesia
2010

Indonesia

World Bank

Expansion and

225

LIBOR

Power

upgrade

of

based

Transmission

existing

and

IBRD

Development

construction of

Variable

Project

new

Spread

substations

Loan

(Source: World Bank, ADB, IJGlobal)

9-4

Figure 9-1 Share of PLNs outstanding long-term loans and bonds


Long-term loans and bonds
28.2%

8.2%
77.5%

63.6%
Two-step loans

Government loans

Bank loans

Bonds

(Source: PLN Annual Report 2014)

As part of the Governments effort to resolve key issues hampering the acceleration of infrastructure
development. Committee for the Acceleration of Priority Infrastructure Development (Komite Percepatan
Penyediaan Infrastruktur Prioritas / KPPIP) was established under Presidential Regulation Number 75 of 2014,
dated 17 July 2014, regarding the acceleration of priority infrastructure development. The KPPIP is led by the
coordinating economic minister and the members of the Committee are the Minister of Finance, the Minister for
National Development Planning / Head of National Development Planning Agency (Bappenas), and the Head of
the National Land Agency (BPN). KPPIP is mandated to create a pipeline of projects to be developed under the
PPP scheme to improve quality of project preparation, bankability, develop optimal funding structures and to
establish incentives and disincentives. In accordance with the Coordinating Ministry for Economic Affairs Law
No. 12/2015, regarding the list of Priority Infrastructure for 2015 2019, there are 30 priority infrastructure
development projects that fall under KPPIPs jurisdiction including the 500kV Sumatra Transmission Grid project,
500kV Central-West Java Transmission Line and the HVDC project.
While significant developments have been made by Indonesia to develop infrastructure projects through private
sector participations, the progress of PPP projects in Indonesias power sector to-date has remained slow. For
example, the 2,000MW Central Java PPP project are still facing delays due to land acquisition. At the same time,
the Sumsel 9 and Sumsel 10 PPP coal-fired projects have been delayed multiple times. Since it was first
announced in 2013, the RFP deadline has been continually extended and as of 13 January 2016, the RFP deadline
has been postponed again.

More generally in power generation plant construction projects in Indonesia, the use of large scale commercial
project finance is common and there is a good track record of commercial lending supported by ECAs.
Traditionally, the Indonesian government has also provided guarantees to backstop PLNs obligations to the
project in order to address PPA and meet lenders requirement for credit enhancement but this is changing as new
precedents develop. The 660MW Banten coal fired plant was the first power plant without a government
guarantee that successfully reached financial close in 2013. Moving forward, the Java-1 is tendered to select
developers and suppliers. For Java-7 power generation project, PLN has appointed Shenhua as preferred bidder in
9-5

December 2015. These two projects also come without a government guarantee. Table 9-3 provides an overview
of recent power transactions in Indonesia.

Table 9-3: Recent power generation plants procured


Project

Sarulla Geothermal Plant

Banten Coal Fired Plant

Sumsel 5 Coal Fired Plant

Capacity

330MW

660MW

600MW

Sponsors

Itochu Corp, Medco Energy,

Genting Berhad, Hero Inti

Sinar Mas

Kyushu

Pratama

Electric,

Ormat

Technologies
Project Cost

USD 1,540.5 million

USD 998 million

USD 480 million

D/E ratio

75:25

73:27

66:34

Debt

USD 1,170 million

USD 730 million

USD 318 million

Tenor

20 years

12 years

10 years

Lenders

ADB, JBIC

EXIM Bank of Malaysia

China Development Bank

ING,

BTMU,

Mizuho,

SMBC, Societe Generale,

Citigroup, Maybank, CIMB,


RHB Bank

National Australia Bank


Financial Close

May 2014

July 2013

Remarks

JBIC political risk guarantee

No government guarantees

for commercial loan

(Source: IJGlobal, Bloomberg)

9-6

April 2012

9.2.3 Overview of Financing at PLN


In the financing landscape in Indonesia, the current annual interest rate of IDR from an Indonesian commercial
bank for PLN is the three months weighted average time deposit35 + 3% per annum, based on PLNs recent
corporate loans. For US dollar financing in recent years, the rate has been 5-7% based on PLNs recent US dollar
bond issues in 2012 and 2009. Typical USD interest rates for project financed power projects would be around 3M
LIBOR + 4-5%.
As compared with these examples, the Japanese ODA Loan of the Government of Japan offered through the
JICA provides several advantages such as lower interest, up to 10-year grace period, and 30-year period of
redemption (for general terms loan). Because of this, there are favourable attitudes towards the use of the Japanese
ODA Loan. The current rates for variable rate 30-year loans is JPY LIBOR + 0.15%36, which is very attractive
compared to commercial loans as well.
Accordingly, the Government of Indonesia and PLN continue to take a positive approach toward the favorable
financing conditions (low interest and longer period of redemption) for a Japanese Yen ODA Loan from JICA. In
fact, PLN is already processing a loan arrangement with JICA (co-financed by KfW) for the Central and West
Java project through direct lending to PLN, according to a new presidential regulation. The Presidential Decree 82
of 2015 on Central Government Guarantee for Infrastructure Financing through Direct Loans issued on 15 July
2015 allows international development finance institutions to lend directly to state-owned enterprise without
going through state budget process and parliament approval. Central government provides guarantee to bilateral
and multilateral organisations. The direct lending will be applicable for projects that are approved by the
Committee of Acceleration of Procurement for Priority Infrastructure (KPPIP), approved by ministries or in line
with the Mid-Term National Development Plan37. The Government of Indonesias intention to release this
regulation was to shorten the time for state-owned institutions to receive financing from international financial
institutions for critical infrastructure projects.

9.2.4 Use of Japanese ODA Loan Requirements in the Proposed Project


There has been frequent exchange of visits by the Government leaders and policy meetings between Japan and
Indonesia. In a summit meeting held between Mr Shinzo Abe, Prime Minister of Japan and Mr Joko Widodo,
President of the Republic of Indonesia on 23 March 2015 in Japan, both leaders expressed strong commitment to
expand bilateral trade and investment cooperation. In the meeting, both leaders also concurred in launching
PROMOSI: Japan-Indonesia Investment and Export Promotion Initiative.
One component of the initiative is the promotion of a business and investment friendly environment in
Indonesia. This aims to enhance investment promotion measures, develop high quality infrastructure, and to
facilitate important projects such as mass rapid transit and electricity. In particular, the importance to enhance
cooperation in developing high quality infrastructure under the 35GW program was also confirmed. This initiative
was further affirmed during Prime Minister Abes visit to Indonesia on 22 April 2015.
The Japan government also announced the Partnership for Quality Infrastructure (PQI) in May 2015 to provide
35

As of December 15, this is 7.99% from Bank Indonesia


JICA lending rates effective from 1 April 2015
37
The Mid-Term National Development Plan (RPJMN) is a 5 year-plan issued by the Government of Indonesia to develop its society
and economy. The most recent issue is the RPJMN 2015-2019
36

9-7

USD 110billion of quality infrastructure in Asia over the next 5 years with the ADB. The PQI aims to promote
necessary infrastructure investment required in the region. Under the PQI, Japan will streamline the ODA loan
procedures from around 3 years to 1.5 years and also to allow ODA loans to be extended to sub-sovereign entities,
such as PLN. Together with the PQI, the Enevolution initiatve also helps to provide emerging economies with
know-how on energy related policy by deepening sector understanding through training programs and seminars to
develop institutional capacity.
The proposed project is concerned with the transmission line reinforcement project for the most important basic
transmission line from the Suralaya area as a source of supplying electric power to Jakarta, the capital and the
economic center of Indonesia. In view of the difficulties and cost efficiency in acquiring the land for the
construction of the power transmission line in practice, the importance of this re-conductoring project is
sufficiently understood on the part of the Indonesia. Furthermore, given that the transmission facilities from
Gandul and Suralaya are also in PLNs plan (RUPTL 2015-2024) for transmission upgrade, there is considerable
interest by PLN to ensure that this project is developed in time to support the growth of new power plants in West
Java.
At present, there is no official request for the Japanese ODA Loan in this project. However, together with the
preceding Central West Java transmission line project, which PLN and JICA have been developing and appraising,
it is expected to put in the process as PLN is positively considering to take up this project which further
strengthens power transmission capacity. Application for Japanese ODA Loan will be filed according to the
subsequent process of the request for the Japanese ODA Loan by the Government of Indonesia.

9.2.5 Implementation Capability of Relevant Agencies of Indonesia


The implementation agency in Indonesia as project proponent and owner is PT. PLN. This company is 100 %
owned and managed as a wholly-owned subsidiary by the Ministry of State Owned Enterprises (BUMN).

PLN is regulated and managed by a complex system which is placed under the regulation and supervision of the
Ministry of Energy, Mineral and Resources (MEMR), and is subjected to the budgetary approval by the Ministry
of Finance. At the same time, MEMR is a coordinated ministry within the Coordinating Ministry for Maritime
Affairs. Coordination and formulation of national energy policies are conducted through the National Energy
Council (DEN), established in accordance with Presidential Decree No. 26 of 2008.38The organization of these
and related authorities are shown in Figure 9-2, Relevant Agencies of Indonesia.

38

Besides energy policies, DEN is entrusted with developing a National Energy Plan and to oversee implementation of policies in
energy issues which cuts across different sectors. The DEN is chaired by the President and Vice-President and includes Ministers
from other ministries.

9-8

Figure 9-2: Power Transmission Relevant Parties of Indonesia

Coordinating Ministry for


Maritime Affairs

President
Vice President
Minister of Finance
State Minister of
National Development
Planning
Minister of
Transportation
Minister of Industry
Minister of Agriculture
State Minister of
Research and
Technology

Ministry of Energy,
Mineral and Resources
(MEMR)

Ministry of Finance
(MoF)

National Energy
Coordinating
Agency
(BAKOREN)

State Minister of
Environment

Regulati
on

National energy policy planning and coordination

Sale and
Purchase
of power

Regulati
on

IPP

Ministry of State
Owned Enterprise
(BUMN)

Budget
and
financing

PT PLN

Subsid of PLN on generation, transmission and distribution

PT Pelayanan istrik Nasional


Batam (PT PLN Batam) (special
regions)

PT Pembangkitan Jawa Bali


(PT PJB) (generation and O&M)

Pusat Pengaturan dan Penyaluran


Beban (P3B) (transmission and
distribution)

PT Indonesia Power (generation)


(Source: The Study Team, PLN)

9-9

Under the leadership of Mr. Sofyan Basir, appointed as president director of this company since December 23,
2014, the following persons in Figure 9-3 are appointed as Directors to take charge of the following Divisions.
PLNs organization structure has been changed on October 2015 with an additional of 3 Directors. Regional
Directors was added into the organization in order for faster decision-making and addressing challenges timely
unique to each regions. The organizational structure under PLN is shown in Figure 9-3 and 9-4.

Figure 9-3 Directors in PLN


S/

Title

Name

President Director:

Mr. Sofyan Basir

Director (Human Capital):

Mr. Muhamad Ali

Director (Procurement):

Mr. Supangkat Iwan Santoso

Director (Corporate Planning):

Ms. Nicke Widyawati

Director (Finance):

Mr. Sarwono Sudarto

Director (Regional Business Sumatera):

Mr. Amir Rosidin

Director (Regional Business West Java & Lampung):

Mr. Murtaqi Syamsuddin

Director (Regional Business Central Java):

Mr. Nasri Sebayang

Director (Regional Business East Java & Bali):

Mr. Amin Subekti

10

Director (Regional Business Kalimantan)*

Mr.

11

Director (Regional Business Sulawesi & Nusa

N1

Djoko

AbMr. Machnizon

Tenggara)*
12

Director (Regional Business Maluku & Papua)*

*effective as of October 2015


(Source: PLN Website)

9-10

Mr. Haryanto W. S.

Rahardjo

1. President Director

2. Human
Capital Director

3. Procurement
Director

4. Corporate
Planning Director

5. Finance
Director

Regional Business
Directors

6. Sumatera
Transmissio
n and
Dispatch
Control (P3B)

Power Systems
Planning
(Mr M Ikbal Nur)
Division

7. West Java

8. Central Java

P3B Jawa-Bali
Grid
(Mr Evy Haryadi)

Foreign Loan and


Grant
(Ms Ika Dewi)

9. East Java & Bali

10. Kalimantan

11. Sulawesi & Nusa


Tenggara

12. Maluku & Papua

Figure 9-4 Organisational structure of PLN and key divisions and persons in relation to the project39

9.2.6 Evaluation of Implementation Capability of the Relevant Agencies of Indonesia


In 2006, PLN was mandated to build 10,000MW of coal-fired plants in order to reduce reliance on fuel oil and
to meet rising domestic demand. Also known as the first Fast Track Program, PLN has since managed to complete
around 90% of the projects as of 2015. Furthermore, with the second Fast Track Program in 2009 to expand more
than 10,000MW of new power projects, PLN has gained experience in developing power projects and through
utilizing ODA loans.
With the 35GW Program, PLN will focus more on developing transmission networks while working on power
generation expansion. MEMR has shared that PLN developed projects could be reduced from 10GW to 5GW.
This allows greater IPP opportunities and at the same time focuses PLNs capabilities in developing transmission
infrastructure. Table 9-4 shows the power transmission projects of Indonesia supported by the Government of
Japan since 1971.
39

This is an extract of transmission related departments relevant to this project and other departments are not shown

9-11

Table 9-4 Power Transmission Projects of Indonesia supported by ODA from the Government of Japan
N

Year

Project

Amount
(million JPY)

18/12/201

Java-Sumatra Interconnection Transmission Line Project (II)

62,914

530/4/2010

Java-Sumatra Interconnection Transmission Line Project (1)

36,994

31/3/2009

Engineering Services for Java - Sumatra Interconnection Transmission Line Project

29/3/2007

North-West Sumatra Inter-connector Transmission Line Construction Project

16,119

28/1/1998

Transmission Line Construction Project In Java-Bali (III)

10,918

4/12/1996

Transmission Line Construction Project In Java-Bali (II)

2,840

1/12/1995

Transmission Line Construction Project In Java-Bali

8/10/1992

Java-Bali Power Transmission Line And Substation Project (East Java) (II)

6,862

25/9/1991

Java-Bali Power Transmission Line And Substation Project (East Java)

7,671

10

15/2/1985

East Java Electric Power Transmission And Distribution Network Project (IV)

11

26/12/198

North Sumatra Transmission Line Project

5,800

12

04/10/1979

The Equipment Supply For Power Distribution Voltage Change Phase II

1,100

13

31/3/1978

The East Java Electric Power Transmission And Distribution Network Project

4,900

14

31/3/1978

The East Java Electric Power Transmission And Distribution Network Project

10,512

15

23/2/1978

The Equipment Supply For Distribution Network

2,240

16

27/12/197

The Equipment Supply For Power Distribution Voltage Change

1,680

17

714/7/1976

Consulting Services For East Java Electric Power Transmission And Distribution

3,886

17,037

14,000

950

Network Project
18

23/4/1975

Palembang Electric Power System Project

19

28/2/1975

East Java Electric Power Transmission And Distribution Network

456

20

28/2/1975

East Java Electric Power Transmission And Distribution Network

4,049

21

12/8/1974

Consulting Services For East Java Electric Power Transmission And Distribution

2,609

288

Network Project
22

21/11/197

Palembang Electric Power System Project

23

224/7/1972

East Java Transmission And Distribution Network Project

24

31/5/1972

Riam Kanan Distribution Network Project

424

25

15/4/1971

Engineering Services Of East Java Transmission And Distribution Network Project

407

(Source: JICA)

9-12

90
2,506

As shown in Table 9-4, PLN of Indonesia has utilized Japanese ODA Loan for approximately 217.252 million
Yen in 25 power transmission line projects during 44 years period (1971 2015). PLN has developed a deep
understanding of the projects using the Japanese ODA Loan of the power-related

sectors of Indonesia, and to

exhibit an advanced level of capability in the implementation of the projects. Japan involvement to transmission
development also shown from technical assistance to PLN for various transmission projects such as the Java-Bali
and Java-Sumatra Transmission Projects. Gradually, PLN has shown capability improvement to execute the
transmission project based on successfully concluded transmission projects. During our interactions with PLN
during the feasibility study, PLN has shown considerable financial technical knowledge and familiarity with
Japanese development financing procedure and is expected to have good experience to develop the transmission
project, which can be seen from PLN 5 years achievement report that shown 5,185.73 kms additional transmission
has been constructed (from 35,146 kms in 2010 to 40,331.73 kms in 2014) and show significant improvement in
2015 with 3,941 kms of additional transmission line. Thus, PLN was able to demonstrate sound understanding of
financing considerations as well as technical expertise in transmission lines.

9.2.7 PLNs Financial Conditions


PLN is a state-owned entity owned by the government of Indonesia (BB+ country credit rating by Standard and
Poors) and is operated on commercial principles. However, due to the nature of Governments policy of keeping
electricity tariffs low (below the cost of production), PLN has received electricitysubsidy by the government in
order to support its financial liabilities and operating costs. Based on the approved budget performance list, PLN
was allowed a 7% margin above the cost of supplied electricity. In 2014, PLN received subsidies from the
government of Rp 99,303,250 million (34% of revenues) and in 2013 subsidies were Rp 101,207,859 million
(39% of revenues). PLNs profit increased from a net loss of Rp 26,235615 million in 2013 to a net profit of Rp
11,741,610 million. Losses in 2013 were primarily due to realization of foreign exchange losses. Table 9-5 is the
statement of income for PLN in years 2014 and 2013.

9-13

Table 9-5 Statement of Income for PLN in 2014 and 2013


Units: million Rp
2014

2013

Revenue
Sale of electricity

186,634,484

153,485,606

99,303,250

101,207,859

Customer connection fees

5,623,913

6,027,799

Others

1,159,544

1,125,778

Total Revenues

292,721,191

261,847,042

Total Operating Expenses

246,909,970

220,911,147

OPERATING INCOME

45,811,221

40,935,895

Gain (loss) on foreign exchange - net

1,319,299

(48,096,810)

Others income (charges) - net

4,157,018

1,792,124

Government's electricity subsidy

Financial income

584,061

Financial cost

736,378

(35,971,211)

(30,146,545)

Tax Benefit (expense)

(4,158,778)

8,543,343

INCOME (LOSS) FOR THE YEAR

11,741,610

(26,235,615)

(Source: PLN Annual Report 2014)

A stronger indicator of PLNs financial condition will be its liquidity rather that profitability. From 2011 to 2014,
PLNs current ratio, equal to current liabilities over current assets, has increased steadily from 0.96 to 1.02 as a
result of its increasing leverage ratio (debt to equity ratio). However, PLN has remained cashflow positive from
2011 to 2014, where its cash position has increased from Rp 22,088,093 million in 2011 to Rp 27,111,528 million
in 2014. This is due to stronger cashflow from operating activities and a decrease in investing activities.
Furthermore, PLNs debt service coverage ratio (DSCR) has been at healthy levels of at least 1.25x.

Table 9-6 summaries the key financial metrics from 2011 to 2014.

9-14

Table 9-6: PLNs key financial ratios


2014

2013

2012

2011

Current ratio (current assets/ current


liabilities)

1.02

1.05

0.98

0.96

Leverage ratio (Debt/equity)

2.67

2.93

2.17

1.89

DSCR (operating income/financial cost)

1.27

1.36

1.38

1.29

(Source: PLN Annual Report 2014, 2013, 2012, KPMG analysis)

Given that PLN has sufficient liquidity, healthy DSCR and net cash position, taking on a new loan is not
expected to have adverse impact on its financial position or its ability to finance the loan. Furthermore, further
subsidy reform in the Indonesian power sector is expected. In 2015, Indonesia removed electricity subsidies for
users with connections of 1,300VA and 2,200VA. The subsidy removal was further extended to smaller users with
connections of 450VA and 900VA on 1 Jan 2016. However, the government intends to provide direct subsidies to
the poorest of its population of about 24.7million subscribers. PLN expects to achieve cost savings of about IDR
20-30 trillion (USD1.5 billion) per year with this direct subsidy scheme.
At the same time, the government has approved, on 28 January 2016, capital injection of about IDR 10 trillion
to support PLN in achieving its 35GW program. With less dependence on government subsidies and capital
injection from the government, PLN financial sustainability is expected to improve in the long term.

9.2.8 Current Situation for the Japanese ODA Loan


As explained in this Chapter, under the new Presidential Decree 82 of 2015, State Owned Entities are now able
to enter into direct loans with foreign institutions, including multilateral development banks such as JICA, ADB
and World Bank. This will drastically reduce the funding approval process within the government as the funds will
not be approved at the national budget level. Instead, PLN will be the direct borrowing agency.
Under the direct lending scheme, the proposed projects need not be listed in the Blue Book (DRPPLN), which is
coordinated through BAPPENAS. With the new direct lending scheme, PLN proposes a project and recommends
to the Ministry of State Owned Enterprise (BUMN) and the Ministry of Finance (MoF) for financing using a
direct loan with an international financial institution. Only upon MoFs in-principle approval, the loan negotiation
process begins. Thus, the implementation process for Japanese yen loan through direct lending can be shortened
compared to the previous process of utilising two-step loans. Figure 9-5 shows an outline of the agencies and
process involved in obtaining the Japanese ODA loan.

9-15

Figure 9-5 Process and agencies involved in obtaining Japanese ODA loan

Indonesian Agencies

PLN reviews project


feasibility and
conducts further
studies and approval

Japanese Agencies

Submission of Japanese ODA


loan request for the project to
Government of Indonesia for
evaluation

Ministry of Finance (MoF)


Ministry of State-Owned Enterprises (BUMN)

Dispatch of JICA Fact


Finding Mission

Submit a request for Japanese


ODA loan to the Government of
Japan through Japanese
Embassy

Dispatch of JICA
appraisal mission

Decision by
Government of Japan on
ODA loan

Negotiations and
formal approvals

Exchange of Notes

9-16

Prior notification to
Government of Indonesia

9.2.9 Implementation Plan for Japanese ODA Loan


Since 1966, Japan has provided Indonesia with almost USD 3.9 billion in ODA loans. With the current on-going
Java-Sumatra HVDC transmission project, PLN is expected to have gained experience and knowledge in
transmission projects, from procurement to project execution. Furthermore, PLN has also been aided by other
development agencies such as Asian Development Bank (ADB) and World Bank for similar transmission projects.
At the same time, it is JICAs goal to increase power generation capacity by 1,595MW and transmission line
(500kV & 275kV) by 1,540km in Indonesia by 2019.
This project has been proposed as a Japanese ODA Loan project for Indonesia. It is essential to get support from
PLN, as the project implementation agency, and support from MoF as the finance ministry of the Government of
Indonesia.
As of December 2015, PLN was

processing a loan arrangement with JICA for the Central and West Java

transmission project. They have discussed the possibility of implementing an Umbrella Agreement to bundle
projects of similar nature together under a sector loan. This Umbrella Agreement could cover transmission
projects such as the Central and West Java transmission project and the re-conductoring of the Suralaya-Gandul
line. The loan agreement with Central and West Java transmission project with JICA is expected to be executed in
April 2016.
The following shows the major milestones during the period from completion of the feasibility study on this
project to the signing of the Japanese ODA Loan agreement and Exchange of Notes:

9-17

Table 9-7: schedule of Loan Agreement and Exchange Note

No.

Activity

Period

Completion of feasibility study

Feb 2016

Distribution of feasibility study to related agencies and study of the report by

Mar 2016

these agencies
3

Study of the project by the PLN as a project implementation agency, preparation

Apr Jun 2016

of Project Implementation Plan, and authorization of the project, including further


environmental or technical review
4

Recommendation by PLN to Ministry of Finance and Ministry of State Owned

Jun 2016

Enterprise for Japanese ODA Loan loan for the project


5

Study of project and Japanese ODA Loan Request by Government of Indonesia

Jul Aug 2016

and relevant agencies and dispatch of JICA fact-finding mission


8

Submission
Government

of

the

request

for

Japanese

ODA

Loan

by

the

Sep 2016

of Indonesia to the Government of Japan (through the

Indonesia-based Ambassador of Japan)


9

Dispatch of JICA Appraisal Mission, and consultation with the related agencies of

Oct Nov 2016

Indonesia
11

Final review, study, consultation and determination of the Japanese ODA Loan

Dec Jan 2017

project by the related agencies of Japan


12

Declaration of intention to implement the Japanese ODA Loan proposal to

Feb 2017

Government of Indonesia (prior notification) and procedure for consent to the


OECD Consensus
13

Japanese ODA Loan procedure, Exchange of Note (E/N) and signing of the

Mar 2017

Japanese ODA Loan Agreement (L/A) under the Umbrella Agreement

Fin.

9-18

(Appendix)
1.

Workshop

Objective
Prior to finalize the report of our feasibility study, we held the workshop in Jakarta to have an opportunity to

share the overview of the study and also to exchange the views among the participants including the members of
Ministries and related entities of two nations, Indonesia and Japan, together with another Japanese study team
which mainly involved in proposing the effective approach for the reform of subsidy system and in introducing
the efficient power system development in Indonesian power sector.

2.

Outline
The outline of the workshop is shown below.
DateWednesday 10th February , 2016

VenueGran Melia Hotel Jakarta


Participants Shown below

Ministry of Finance (MOF)


Ministry of Energy and Mineral Resources (MEMR)
Indonesia

Coordinating Ministry for Economic Affairs


BAPPENAS
PLN
Ministry of Economy, Trade and Industry (METI)

Japan

JICA
Japanese private companies

ProgrammeShown the figure below


Time
9:009:10

Topic
Opening

and

Presenter
welcome

METI and MEMR

remarks
Finance
9:109:40

Securing Financial robustness


for

long-term

Power

Ernst & Young Shinnihon


LLC (E&Y)

Development International
cases on subsidies reform and
government support9:409:55

Finance Strategies for Power

MOF

Sector Development
9:5510:10

PLN Strategies to Finance the


9-19

PLNFinance

35GW

Power

Development

Program
10:1010:30

Q&A/Discussion

MOF, PLN(Finance), and


E&Y

Technical Solutions
10:3010:50

Measures for Efficient Power


System Development

10:5011:10

Feasibility

Tokyo

Electric

Power

Company Inc.(TEPCO)

Study

of

KPMG,

Tokyo

Electric

Service

Co.,

Transmission Lines Upgrading

Power

in North West of Java Island,

Ltd.(TEPSCO)

Indonesia

3.

11:1011:30

Panel discussion

11:3011:45

Q&A/Discussion

PLN, KPMG, TEPCO, and


TEPSCO

Result

(1) Comments from PLN for the study


According to the power system planning division of PLN, PLN prefers constructing new transmission lines over
the reconductoring as an augmentation of capacity of transmission lines from Suralaya (Lama) power plant to
Gandul substation. On the other side, PLN understands that new construction would be difficult particularly in
densely populated areas in the region, for example around Jakarta, since it is easily expected to cost amount of
time and investment for the procedure of land acquisition etc.

(2) Q&A
There was one question to PLN from a participant in relation to (1) above. The participant was wondering why
PLN prioritized construction of new transmission lines although the presentation of the study team addressed that
reconductoring is more profitable project than new construction. PLN commented that reconductoring is a better
approach in a short and mid-term period (e.g. 10 years) but constructing new lines is more beneficial in a longer
period (e.g. 50 years) with the insight of Indonesians future economic growth.
And there was one question to the study team from a participant. The participant asked what happens in power
flows of this transmission lines in this region once power interruption is expected to occur before the start of
operation during the period when reconductoring work is being performed. The study team commented that they
could not answer the question based on the evidence as they did not perform the system analysis for the period of
reconductoring work, and they viewed that the power flow is possibly going to reduce suppressing power of
electricity generated from new power plants in West Java area RUPTL 2015 mentioned to be started their
operations from 2019 to 2020.

In consequence, the study team believe that the workshop was a great opportunity for the participants to
understand at certain level why the project is feasible.
Fin.
9-20

Format2
A list of non-approved secondary use
Title of Report: Feasibility Study of power supply upgrading in North West of Java
Island
Title of project: Study on Economic Partnership Projects in Developing Countries in
FY2015
Prepared by KPMG AZSA LLC
Tokyo Electric Power Services Co., Ltd.
Page

No.

4-1

Table 4-1

4-2
4-3
4-3
4-4
4-5
4-6
4-9
4-10
4-11

Figure 4-1
Table 4-2
Table 4-3
Figure 4-2
Figure 4-3
Figure 4-4
Table 4-4
Figure 4-7
Table 4-5

4-12

Table 4-6

4-12

Figure 4-8

4-14
4-15
4-16
4-21
4-22

Figure 4-9
Figure 4-10
Table 4-7
Figure 4-15
Figure 4-16

4-23

Figure 4-17

4-24
4-29
4-30
4-31
4-31
4-32

Figure 4-18
Figure 4-21
Table 4-10
Figure 4-22
Figure 4-23
Figure 4-24

4-32

Figure 4-25

4-33
4-33
4-34
4-34
5-26
5-27
5-29
5-30
5-32
5-33
5-34
5-35

Figure 4-26
Figure 4-27
Figure 4-28
Figure 4-29
Table 5-15
Figure 5-15
Table 5-16
Figure 5-17
Table 5-17
Figure 5-19
Table 5-18
Table 5-19

title
Generation expansion plan which affect the loading condition of the transmission line
between Suralaya(Lama) power plant and Gandul substation
Generation expansion plan in the north western region of Jawa-Bali grid
Transmission line projects in the Special Capital Region of Jakarta
Transmission line projects in Banten province
Latest generation expansion and transmission augmentation plans during 2016-2018
Latest generation expansion and transmission augmentation plans in 2019
Latest generation expansion and transmission augmentation plans in 2020
Supplydemand balance in Jawa-Bali power system for system analyses
Result of power flow analysis under N-0 condition
Results of N-1 contingency analyses
Results of N-1 contingency analyses with grid splitting between Kembangan and
Gandul
Result of power flow analysis under the one circuit outage of Lengkong Gandul
section
Result of the fault current analysis in 2020
Result of the fault current analysis in 2016
Substations and Power plants where the fault current exceeds 50 kA
Image of bus split at Gandul substation
Image of bus fault current flow under bus split configuration at Gandul substation
Grid configuration change from the loop to the radial by opening Kembangan-Gandul
transmission line
Busbar split operation at Balaraja substation
Fault locations for stability analyses
Results of system analyses
Suralaya(Lama)-Balaraja transmission line #1 trip after a fault at Suralaya end
Suralaya(Lama)-Cilegon transmission line #1 trip after a fault at Suralaya end
Cilegon-BogorX transmission line #1 trip after a fault at Cilegon end
Suralaya (Lama)-Suralaya Baru transmission line #1 trip after a fault at Suralaya
(Lama)
Suralaya Baru-Banten transmission line #1 trip after a fault at Suralaya Baru end
Banten-Bojonegara transmission line #1 trip after a fault at Banten end
Bojonegara-Balaraja transmission line #1 trip after a fault at Bojonegara end
Tanara-Balaraja transmission line #1 trip after a fault at Tanara end
Existing Facilities at Gandul SS
Single Line Diagram (Gandul S/S)
Existing Facilities at Balaraja SS
Single Line Diagram (Balaraja S/S)
Existing Facilities at Suralaya SS
Single Line Diagram (Suralaya S/S)
Rating of Existing and Newly Installed Circuit Breakers
Quantities of Substation Equipment to be Replaced and Rated Currents

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