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PLN bundles 7,046 MW hydropower projects to speed up RUPTL

The larger the scale, the more competitive the outcome will be,Jakarta (ANTARA) – State-owned electricity company PT PLN (Persero) will bundle hydropower procurement projects totaling 7,046 megawatts (MW) to accelerate implementation of Indonesia's 2025-2034 Electricity Supply Business Plan (RUPTL), a company executive said on Wednesday.PLN Director of Project Management and New and Renewable Energy Suroso Isnandar said the bundled procurement scheme was designed to address bottlenecks in hydropower project procurement.”To accelerate the procurement process and overcome existing bottlenecks, we have designed a bundled procurement scheme,” Suroso said at the Indonesia Hydropower Summit 2026 in Jakarta.According to PLN, the procurement package, named GIGA ONE Hydro, comprises the 1,071 MW Sumatra Peaker project and the 1,800 MW Sumatra Baseload project.The package also includes the 150 MW Kalimantan Peaker project, the 825 MW Kalimantan Baseload project, the 1,400 MW Sulawesi Baseload Phase I project, and the 1,800 MW Sulawesi Baseload Phase II project.”Currently, around 1,000 MW under the Sumatra Peaker package has entered the tender process,” he said.Suroso said the Sumatra Baseload project remains in the feasibility study stage, while the Kalimantan Peaker, Kalimantan Baseload, and both Sulawesi Baseload phases are in the final stage of preparing tender documents.He said PLN plans to launch procurement for the Sumatra Baseload project in phases, beginning with approximately 350 MW.”The 1.8 GW Sumatra Baseload project will be launched in phases, starting with 350 MW,” he said.According to Suroso, the phased procurement approach takes into account the readiness of the Sumatra-Java electricity interconnection so that electricity generated by the projects can be integrated into the national grid.He said large-scale procurement would create economies of scale, attract more bidders, and generate more competitive offers.”The more participants we have, the more competitive the process becomes. The larger the scale, the more competitive the outcome will be,” Suroso said.The bundled procurement scheme forms part of PLN's efforts to accelerate hydropower development, which typically involves lengthy processes, including feasibility studies, licensing, procurement, power purchase agreements, financing, and construction.Under the 2025-2034 RUPTL, Indonesia plans to develop 11,689.99 MW of hydropower and mini-hydropower capacity through 315 projects.Suroso said accelerating hydropower development would require adequate grid readiness, regulatory certainty, stable contractual arrangements, and fair risk-sharing between PLN and project developers.