Pertamina Geothermal waiting for PPA amendments for 30 MW Karaha geothermal project
Pertamina Geothermal Energy is asking for the finalisation of amendments to a PPA with PLN for its 30 MW Karaha geothermal project, to lift the rate to $0.114/ kWh.
Pertamina Geothermal Energy (PGE) continues to seek amendments to the power purchase agreement for the Karaha geothermal project with PT PLN. The reason, is the large investment required to make the project work.
Director of PGE Exploration and Development Khairul Rozaq said, in order to produce 30 MW of power from the Karaha geothermal project, an investment of US $ 178 million is required. The funds are not only used for the upstream development of the project, but also to connect the power plant requireing up to 26 km in transmission lines and 60 transmission towers.
In the current PPA with PLN, PGE only would get $0.0825/ kWh. In order to make economic sense, the Karaha project would require a PPA of $0.116/ kWh.
“We had a revised plan for $ 0.116/ kWh, but no agreement has been reached. Yesterday, BPKP verified the PPA for $0.114/ kWh but until now no amendment has been made, so we ask for government assistance for the amendment of the PPA to $0.1144/ kWh, Khairul said on in local news today.
Moreover, according to Khairul, Pertamina and PLN have had time to sign the Head of Agreement (HOA) to amend the power purchase contract in Karaha.
“Current status has been verified BPKP and already have Head of Agreement with Pertamina signed in 2014 but until now has not been amended,” he added.
Source: Kontan Indonesia