PLN, the state-owned power utility of Indonesia, cancelled the allocation of 22,000 MW of power projects because of low electricity demand in 2017. In its electricity procurement business plan for the year 2017-26, the utility had forecast an annual average electricity consumption increase of 8.8 per cent during the 2017-26 period and suggested the development of 77,900 MW of new power projects to meet the anticipated demand. However, the actual power consumption grew by only 3.6 per cent in 2017. The business plan, therefore, has now been revised to include the development of 56,000 MW of projects. Indonesia now plans to commission only 20 GW of power plants by 2019 as against its target of 35 GW.
