All PPAs for 35 GW power projects to be completed by 2016
Monday, January 4 2016 - 01:02 AM WIB
The Directorate General of Electricity at the ministry said in a recent statement that as of end of 2015, PPAs covering the planned development of 10,000 MW have been signed by the developers and state-owned electricity firm PT PLN.
?I?m optimistic that all PPAs can be signed by next year,? said Alihuddin Sitompul, Director of Electricity Program Development in the statement, adding that once the PPA has been signed, developers need about three years to complete the construction of the power plants, which are mostly coal-fired.
He said that power plant projects whose PPAs were signed in 2015 should be completed in 2018. Meanwhile, those whose PPAs to be signed in 2016 should be completed in 2019.
The current government of President Joko Widodo has set a target to develop a combined 35,000 MW power plant projects until 2019, the bulk of which to be coal-fired plants.
Alihuddin said that the government is eager to help developers in accelerating the power plant projects, but quickly added that the government would not tolerate unqualified investors. ?We don?t want rent seekers,? he said.
Elsewhere, Alihuddin said that for gas-fired power plants, the government expects state-controlled gas distribution firms PT PGN Tbk and PT Pertamina Gas to team to develop the projects.
Editing by Reiner Simanjuntak