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

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 to supply 184 MW peaking gas power plant to Indonesia

Dec 17, 2014, 00:39 by Wärtsilä Corporation

The Arun power plant with a 184 MW operating capacity will be the largest gas engine based peaking power plant in Indonesia. This order further strengthens Wärtsilä’s global position as one of the leading suppliers of large gas powered power plants of up to 500 MW. Wärtsilä power plant solutions are based on modern combustion engine technology, which provides superior flexibility and high efficiency at any load. These unique features enable the maximum use of intermittent renewable energy sources, while meeting the increasing demand for peak load.

Wärtsilä has been contracted to supply the engineering and equipment for a new power plant under construction in Indonesia. The project is being handled on a fast-track basis, and the plant is scheduled to be handed over and in full operation in March 2015. The contract was signed in the third quarter 2013. 

The order has been placed by PT Wijaya Karya (Persero) Tbk., a government owned company and one of Indonesia’s biggest construction contractors, who is building the plant on behalf of PT Perusahaan Listrik Negara (PLN), the state utility company. The power will be generated by a total of 19 Wärtsilä 34SG engines running on liquefied natural gas (LNG). The power plant will be built in Lhokseumawe in Aceh Special District in northern Sumatra. The electricity produced will be used to stabilise the grid. The power plant will also strengthen the Aceh Special District electricity system so as to ensure a reliable electricity supply to consumers during peak loads.

“Wärtsilä has been selected as the preferred supplier by the customer, based on our proven capability to deliver high quality, extremely efficient, and flexible power plant solutions on a fast-track basis,” says Sushil Purohit, Regional Director South-East Asia & Australia, Wärtsilä Power Plants. “When completed, the Arun gas power plant will be able to strengthen the Aceh electricity system and will support PT PLN’s effort to bring reliable electricity to the consumers. This important project will further enhance awareness of the efficiency and flexibility of Wärtsilä’s power plant solutions in the Asian market.”

Wärtsilä has a strong presence in Indonesia

This is already the second contract Wärtsilä Power Plants has received from Indonesia this year. The first one was booked in the second quarter 2013 for a 155 MW gas engine based peaking plant owned by PT PLN. Wärtsilä will supply 16 Wärtsilä 34SG engines to the plant which will be located in Bangkanai in Central Kalimantan. It is scheduled to be fully operational by the end of 2014 and will produce electricity to the Kalimantan grid.

Wärtsilä has a strong presence in Indonesia, with some 3 GW of installed power in operation. These, and all Wärtsilä installations, are supported by the company’s global service network. Wärtsilä has service agreements for over 350 MW of power generating capacity in Indonesia.

Outstanding example of Smart Power Generation

The new 184 MW Arun power plant, which will be utilised to handle the increasingly fluctuating power demand in the region, illustrates the need for Smart Power Generation. Smart Power Generation is a new concept that enables an existing power system to operate at maximum efficiency by effectively absorbing current and future system load variations. At the same time, it provides significant savings on the system level and, thus, also for consumers.

Read more about Smart Power Generation
Image of the power plant

For further information please contact:

Sushil Purohit
Regional Director, South-East Asia & Australia
Wärtsilä Power Plants
sushil.purohit@wartsila.com
Tel. +65 977 13424

Tuula Franck
Senior Manager, Media and Stakeholder Relations
Wärtsilä Corporation
tuula.franck@wartsila.com  
Tel: +358 400 267555

Wärtsilä Power Plants in brief
Wärtsilä Power Plants is a major supplier of flexible base load power plants up to 500 MW operating on natural gas or various liquid fuels. Wärtsilä Power Plants also provides unique, dynamic solutions for grid stability, reserve, peaking, load following and intermittent power generation. Wärtsilä delivers over 100 power plant projects each year. At the end of 2012, Wärtsilä had close to 54 GW of power installed in power plants in 169 countries around the world.

Read more about Wärtsilä Power Plants

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2012, Wärtsilä’s net sales totalled EUR 4.7 billion with approximately 18,900 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
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