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Indonesian state utility Perusahaan Listrik Negara will operate three new coal-fired power plants in Banten, the company said on Wednesday.

PLN CEO Nur Pamudji said, these power plants are crucial to step up power capacity in Java and Bali from 19,700 up to 23,000 megawatt (MW).

The coal-fired power plant is also said to cut PLN expenses as much as 19.9 trillion rupiah ($2.19 billion) per year, by converting from fuel-based power plant.

Details on power plant projects as follows:

— PLTU 1 Banten-Suralya: Capacity at 1 x 625 megawatt with 2.9 million metric tons per year coal consumption. Located in Suralaya, Banten, with investment size at around $478 million. The project is run by CNTIC and Indonesia state-owned Rekayasa Industri consortium.

— PLTU 3 Banten-Lontar: Capacity at 3 x 315 megawatt with 1.4 million metric tons per year coal consumption. Located in Lontar, Banten, with investment size at around $808.4 million. The project is run by China power equipment giant Dongfang Electric Corporation and Dalle Energy consortium.

— PLTU Tanjung Jati B: Capacity at 2 x 662 megawatt with 2.2 million metric tons per year coal consumption. Located in Tubanan, Central Java, with investment size at around 160 billion yen ($2.06 billion). The project is run by Japan’s third-largest trading firm Sumitomo Corporation, Wasa Mitra Engineering and Bangladeshi power firm Summit Power Development Ltd.

Indonesia wants to boost its electricity capacity under the government’s fast-track program to add a total of 20,000 megawatts generating capacity. Power shortages are common in Indonesia, where poor infrastructure is one of the factors restricting growth in Southeast Asia’s largest economy.

Reuters