Support for Independent Review of the Economic Viability of the Java Sumatra HVDC Link

This 2016-2017 economic assessment was undertaken for an HVDC interconnection between Java and Sumatera using the power systems planning model Plexos. PLN has planned to develop a high voltage direct current (HVDC) transmission line to connect the Java and Sumatera grids with 3,000 MW of power carrying capacity and a cost of USD 2.1 USD billion. This would allow the power export from low-cost mine-mouth coal-fired power plants in Sumatera to Java. However, changing market conditions and the large investment required for the project prompted PLN to review the economic attractiveness of the project.

• Working with Institute Technology Bandung, Castlerock assessed the economic value of a an HVDC interconnection between Java and Sumatera using the power systems planning model Plexos.
• This analysis included characterization of existing and future generation and HVDC interconnection options for both systems, preparation of fuel price scenarios, demand forecasting, running of Plexos in long-term (LT) mode to compare total present value of various interconnection and generation options over a period of 20 years, and analysis of interconnection power flows.