PLN Sumatra business director Wiluyo Kusdwiharto (L) shakes hands with Tenaga Nasional Berhad (TNB) chief executive officer Amir Hamzah Bin Azizan on Sept. 25, upon signing a memorandum of understanding in Kuala Lumpur, Malaysia. (Source: PLN)

In a statement, PLN said it plans to connect itselectricity transmission network on Sumatra island to TNB's western network by2028.

The two sides are scheduled to form a jointventure company to develop and manage the project, said PLN Sumatra businessdirector Wiluyo Kusdwiharto.

The connection is expected to help increase thereliability of electricity supply as peak demand on the Sumatra network occursbetween 6:00 pm and 9:00 pm while that of Malaysia’s western network occursbetween 8:00 am and 4:00 pm.

Once connected, PLN Sumatra will have a 33percent reserve margin – the difference between capacity and demand – which iswithin the International Energy Agency’s recommended reserve margin of 20 to 35percent.

Earlier in 2017, PLN and TNB signed a MoU onimplementing a two-year feasibility study for constructing a 400MW coal-firedpower plant in Kalimantan, the Indonesian territory on the island of Borneo.The plant is to supply electricity to Malaysia’s Sabah state./. VNA