Indonesian state-owned utility Perusahaan Listrik Negara (PLN) will get support from ABB to strengthen reliability and improve the efficiency of its Java-Bali transmission and distribution networks.
The substation extensions for PLN to offer reliable power for Java support plans for a further 35,000MW of electricity by 2019.
Indonesia expects an increase in power shortages as the demand for power is increasing on a day-to-day basis with expanding middle-class of Indonesia.
A report by the Economist expects that annual demand for power will expand by about 9% for the next decade and to tackle the issue head-on, PLN is planning for a nationwide electrification rate of more than 95% by 2020.
Under the deal, ABB will design, engineer, supply and install substation extensions, switchgear, transformers, control and protection system and ancillary equipment.
The project is scheduled to be completed by 2017 and it will be financed by the Asian Development Bank.
ABB Power Grids division president Claudio Facchin said: "We are pleased to support PLN in their efforts to strengthen the power infrastructure in Indonesia and enhance electricity supplies.
"ABB’s proven track record for managing complex projects and our leading-edge technologies will help us to deliver customer value.
"This project supports our Next Level strategy focus on growing and emerging economies like Indonesia where we have a long standing presence including manufacturing."
Image: ABB to upgrade Indonesian electricity supply and distribution. Photo: Courtesy of ABB.
