Pertamina and PLN finalizing PPAs for geothermal plants of up to 615 MW
Lahendong Unit 2 plant Sulawesi, Indonesia (source: aecom.com)
Alexander Richter
25 Apr 2014
PT Pertamina and PT PLN reach agreement over a power purchase agreement for up to 615 MW from 8 geothermal power plants at a price somewhere around $0.091 to $0.097 per kWh.
In a statement to media yesterday, the minister for State Enterprises Dahlan Iskan, said that state companies PT Pertamina and PT PLN will sign a geothermal power purchase agreement (PPA) involving a number of geothermal power projects.
Under the agreement announced now, power utility company PLN will buy power generated from 8 geothermal power plants to be built by oil and gas company Pertamina, at at agreed prices. The PPA will be signed on Monday next week. The agreement covers the sale of power from 8-9 geothermal power plants to be built by Pertamina.
The 8 projects include PLTP Lumut Balai 1-2 with a capacity of 110 megawatt , PLTP Lumut Balai 3-4 with a capacity of 110 MW , 110-MW PLTP Hulu Lais and 55-MW PLTP Sungai Penuh in Sumatra, PLTP Lahendong with a capacity of 40 MW in Manado, 30-MW PLTP Kamojang and 50-MW PLTP Karaha in West Java and the PLTP Ulu Belu with a capacity of 110 MW.
Construction of the geothermal power projects being built and to be built with a total investment of Rp15 trillion ($1.3 billion) and total capacity of 615 MW has been delayed over difficulty in reaching price agreement, Dahlan said.
Pertamina offered a price of 9.7 US cents per kwh and PLN wanted a lower price at 9.1 US cents /kwh.
He said he was pleased that an agreement was finally reached that work could be resumed or started, adding , there was no reason not to reach an agreement.
“Indonesia has the largest geothermal reserves in the world and Pertamina has money to exploit the resource with PLN as the buyer of power,” he said.
Source: Republika
