Insight
| |
15 Pages

Indonesia's 35 GW power programme: turning obstacles into opportunities


Indonesia's 35 GW power programme: turning obstacles into opportunities

Report summary

In January 2015, the Indonesian government launched the '35 GW Programme' to build a new wave of power plants across the country. The programme has a critical strategic significance given looming power shortages.

However, 12 months into this programme and progress has been slow. Indeed, the experience of previous fast-track programmes shows the programme will face numerous challenges. Obstacles such as land acquisition can tie up developments for years.  The government is hoping to encourage success and has initiated some streamlining measures in addition to market reforms.

Significant opportunities exist for various players  throughout the value chain - LNG and coal suppliers, EPC companies, power plant operators, and financial institutions. The programme sees a much greater role for independent power producers.  But participants will need to understand which projects offer the best chance of being realised and how to mitigate the obstacles in their way. 


What's included?

This report includes 1 file(s)

  • Indonesia's 35 GW power programme: turning obstacles into opportunities PDF - 643.71 KB 15 Pages, 6 Tables, 7 Figures

Description

This Gas Markets Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For participants, suppliers and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

We provide detailed supply, demand and price forecasts based on our integrated upstream, power, coal and LNG research. Our regional gas experts are based in the markets they analyse, providing comprehensive analyses of regional and global gas markets.

If you want to understand complex gas market dynamics and plan for the future, Wood Mackenzie is the premier resource to help you gain a clear, competitive advantage.

  • Executive summary
  • Background
  • Multiple opportunities across the value chain
  • How does the 35 GW programme differ from early schemes?
    • An increasing role for gas...
    • …and lower expectations for renewables
    • The role of PLN
  • What is the process for building a power plant under the 35 GW programme?
  • What are the key challenges facing IPPs?
    • 1. Land identification and acquisition
    • 2. Financing and government guarantees
    • 3. Fuel supply and infrastructure bottleneck
    • 4. Bureaucracy and permit requirements
  • Navigating the opportunities
    • Likely outcomes
  • Conclusion
  • APPENDIX

In this report there are 13 tables or charts, including:

  • Executive summary
  • Background
    • The 35 GW programme: geographical distribution, fuel mix and PLN/IPP split
  • Multiple opportunities across the value chain
    • Typical Indonesian IPP project structure & key players (non exhaustive)
    • International interest in the Java-1 CCGT & Java Bali-3 peaker projects*
  • How does the 35 GW programme differ from early schemes?
    • Capacity mix comparison
    • PLN vs IPP
  • What is the process for building a power plant under the 35 GW programme?
    • Indonesia's 35 GW power programme: turning obstacles into opportunities: Image 5
  • What are the key challenges facing IPPs?
    • Impact on coal demand
    • Impact on LNG demand
  • Navigating the opportunities
  • Conclusion
  • APPENDIX
    • Reference ceiling prices under MEMR regulation no. 3/2015
    • Power project list - 35 GW programme
    • Coal-fired power plant projects
    • Gas-fired power plant projects
    • Renewable power projects
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.