Bakrie Power, PLN expect to seal deal on geothermal electricity pricing

By Godang Sitompul

PT Bakrie Power expects to reach an agreement in March with the government and state electricity company PT PLN over power tariff for electricity to be purchased by PLN from its geothermal power plants ? PLTP Ngebel in Ponorogo in East Java and Sukoria in Flores, East Nusa Tenggara.

President Director of Bakrie Power Ali Herman Ibrahim told Petromindo.com that it expects PLN and government will agree to set the tariff at 7.55 US dollar cent per kWh.

Earlier, Bakrie Power expected to sign a power purchase agreement (PPA) by the end of last year, however, the deal was not reached for unclear reasons.

He said soon after the PPA is signed, the company will go ahead with the construction of both geothermal power plants and should complete them within five years.

As for PLTP Sokaria in Ende, Flores island, Bakrie Power is still assessing the location of the PLTP. It plans to build three power plant units with capacity of 10 megawatt each.

Editing by Roffie Kurniawan