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    Arun, Sumatra, Indonesia
    Wärtsilä and PLN sign cooperation agreement to develop power generation in Indonesia
    Arun - Sumatra, Indonesia
    Arun + Wärtsilä

    Reference case

    Arun, building an optimum generating system

    With a population of nearly 250 million and an economy that has grown at an average of 5.6 per cent a year over the last decade, Indonesia is hungry for power.

    To improve electrification and meet a demand that is expected to grow at 9-10 percent per annum in the coming years, much of the new capacity that is being added is in the form of large baseload coal-fired plant. However, building an optimum generating system that can also meet peak electricity demand is a challenge.

    The government’s decision to turn to gas to address the issue presented an opportunity for Wärtsilä to demonstrate the benefits of its flexible power generation solution. Aceh Special District in northern Sumatra is one area that needs to strengthen its electricity system to ensure reliable electricity supply up.

    Arun will be able to reach full load in 10-15 minutes. Further, because engines can be switched on and off according to load requirements, the remaining engines can run at full power and therefore the plant can maintain maximum efficiency over a much wider load range. By comparison, a gas turbine due to its much larger size would have to operate at part load and thus be much less efficient.

    Grid stability has to be improved and more capacity is required to serve the demand peak that occurs once a day for about five hours. When the state utility PLN decided to build the new Arun gas-fired plant to address its needs, it could have opted for open cycle gas turbines. However, after a careful lifecycle analysis, it decided to build a plant based on combustion engines supplied by Wärtsilä. With an output of 184 MW, generated by nineteen Wärtsilä 20V34SG engines running on liquefied natural gas (LNG), it is one of the largest internal combustion engine plants in the country. An engine-based plant has another benefit in that it can be started up and shutdown without impacting maintenance schedules.

    The plant’s 19 engines will be split across four blocks of engines (5 + 5 + 5 + 4) housed in two adjacent powerhouses. Radiators for each block are located on the roof, and the entire plant will be controlled from a single control room. As the plant will be used purely for peaking as a grid stabilising plant, it is expected to operate for between 2000 and 3000 hours a year.

    Using the Arun plant purely for this purpose has overall benefits for the entire power system. It will optimise the system by enabling PLN’s large baseload plants to stop peaking operation and run at full power, where they are most efficient, all year round. For PLN the savings will be dramatic. Due to rapidly increasing electricity demand, Arun was being built on a fast track basis – only 18 months from contract signing to full commissioning.

    Notably, it is the first project where PLN requested the contractor and the equipment manufacturer to arrange financing through export credit. Wärtsilä worked closely with Finnvera and Standard Chartered Bank to secure the loan agreement at attractive interest rates. Wärtsilä’s support in arranging financing has also helped to expedite the project. Arun not only helps to satisfy Indonesia’s enormous appetite for power, but it also serves as a reference for a more flexible way of tackling peak demand and providing grid stability throughout the region.

    WhoPT Wijaya Karya Persero Tbk
    What19 x Wärtsilä 20V34SG
    WhereArun, Sumatra
    HowEEQ (Engineered equipment delivery)

    This is what we achieved

    184

    MW of electrical output

    10

    Minutes to reach full load

    18

    Months fast-track basis

    The Arun power plant will serve to strengthen the Aceh Special District electricity system, ensuring reliable electricity supply to consumers during peak loads.

    How we did it

    Challenge icon

    Challenge

    • Meet a heavily fluctuating peak demand for short periods
    • Very large operating window required
    • Fast growing demand soon renders current capacity insufficient
    • Currently baseload plants must be used also for peaking
    • Grid stability and reliability issues
    Solution icon

    Solution

    • Wärtsilä 34SG combustion engines capable of daily starts/stops without any impact on maintenance
    • Multiple engine solution with higher efficiency than open cycle GT plants
    • Attractive delivery time, financial and development services
    • Smart Power Generation plants used for peaking & grid stability
    • Internal combustion engines with excellent ramp rates and able to reach full load in 10 minutes
    Benefit icon

    Benefit

    • Lower lifecycle costs
    • Can follow load without reducing overall plant efficiency
    • Customer can deliver power faster and start earning on electricity sales earlier
    • More efficient use of baseload plants
    • Grid support
    Questions? Contact us

    The main details

    CustomerPT Wijaya Karya Persero Tbk (PT Wika) (Utility)
    TypeWärtsilä 34 gas power plant
    Operating modePeak load/stand-by & emergency
    Gensets19 x Wärtsilä 20V34SG
    Total output184 MW
    FuelLNG (Liquefied natural gas)
    ScopeEEQ (Engineering & Equipment)
    Delivered2015
    Arun map

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    Related press releases

    Wärtsilä and PLN sign cooperation agreement to develop power generation in Indonesia

    Sep 16, 2016, 11:31 by Wärtsilä Corporation

    Wärtsilä and PT Perusahan Listrik Negara (PLN), the state power company of Indonesia have signed a Memorandum of Understanding (MoU) today. The MoU was signed in conjunction with Indonesian State Owned Enterprises Minister Rini Soemarno’s visit to Finland. With this agreement, both parties agree to cooperate on the development of 500 megawatts (MW) of power generation solutions and related small scale LNG storage and regasification infrastructure in Indonesia. This power generation is forecasted to be contracted and installed as several projects during the next two years. Another major aspect in this agreement is the emphasis put on further developing local Indonesian capability in power projects execution, knowledge transfer and development of local skills.

    Thanks to a rapidly developing economy, the standard of living in Indonesia has significantly improved in recent years. Supporting further economic growth requires large investment in the development of infrastructure, particularly in power generation. An additional priority of the Indonesian government is to ensure equal availability of reliable power supply through the entire Indonesian archipelago. In order to reach these targets, an ambitious program of adding 35 000MW of power generation capacity to their system by 2019 was started in 2015. The 500MW of power generation capacity covered in the MoU will help PLN in implementing this program.

    “Wärtsilä’s proven capability to deliver high quality, efficient, and flexible power plant solutions on a fast-track basis is perfectly suited to the requirements of Indonesia” says Javier Cavada, President Wärtsilä Energy Solutions. “With this MoU, Wärtsilä is also pleased to express its strong commitment towards the development of Indonesian manufacturing skills and knowledge transfer as it is the basis for a mutually beneficial and long relationship.”

    Wärtsilä has been present in Indonesia for more than 30 years during which it has installed more than 3GW of power generation capacity. Some of the recent projects using Wärtsilä’s internal combustion engine technology are the 200MW dual fuel Pesanggaran plant, 184MW Arun power plant and the Bangkanai 150MW power plant.

     

    Media contacts:

    Mr Javier Cavada
    President
    Wärtsilä Energy Solutions
    Tel: +358 10 709 5297
    javier.cavada@wartsila.com

    Mr Atte Palomäki
    Executive Vice President, Communications & Branding
    Wärtsilä Corporation
    Tel. +358 10 709 5599
    atte.palomaki@wartsila.com

     

    Wärtsilä Energy Solutions in brief:
    Wärtsilä Energy Solutions is a leading global supplier of ultra-flexible power plants of up to 600 MW operating on various gaseous and liquid fuels. Our portfolio includes unique solutions for baseload, peaking, reserve and load-following power generation, as well as for balancing intermittent renewable energy. Wärtsilä Energy Solutions also provides utility-scale solar PV power plants, as well as LNG terminals and distribution systems. As of 2016, Wärtsilä has 60 GW of installed power plant capacity in 176 countries around the world.
    www.smartpowergeneration.com

    Wärtsilä in brief:
    Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2015, Wärtsilä’s net sales totalled EUR 5 billion with approximately 18,800 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
    www.wartsila.com

     

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