American firm restarts power generators in Nias

American firm American Power Rental (APR), which recently shut down its diesel power generator in Nias island causing blackout on the island, is bringing back its power generator into operation starting on Tuesday after the firm agreed to solve dispute with public utility PT Perusahaan Listrik Negara (Persero) PLN

PLN said in a statement on Tuesday both firms reached agreement to solve dispute thanks to the mediation of US Ambassador in Indonesia Robert O Blake.

APR has sent its technicians to restart two diesel power generators owned by the firm, located in Moawo and Indanoi respectively. According to reports, each of PLTD Moawo and PLTD Indanoi has a capacity of 10 MW.

?The first team from APR comprising eight technicians have arrived at PLTD Moawo in order to restart the generator. Hopefully, PLTD Moawo will have come back into operation this afternoon or evening. Four other technicians are scheduled to arrive this afternoon, followed by three other technicians tomorrow (Wednesday),? PLN?s Senior Manager for Corporate Communications Agung Murdifi said.

PLN leased the 2x10 MW diesel fired power generators from APR. But the latter shut down the generators on April 1, causing blackouts in the region. APR demanded PLN to first make full payment to PT Prastiwahyu Trimitra Engineering for power plants leased by PLN with a combined capacity of 75 MW in Kualanamu and Tanjung Morawa, both in North Sumatra. Trimitra leased the plants from APR.

While seeking to solve its dispute with APR, PLN has brought a number of generators owned by the firm from various parts of the country, including a seven generators with a combined capacity of 8 MW from Langsa, Aceh.

Agung said PLN plans to build a gas engine power plant with a capacity of 25 MW in Idanoi in cooperation with its subsidiary PLN Batam B?Right as independent power producer. The power plant is expected to come onstream in August this year.

Editing by Johannes Simbolon