Bukaka hopes to sign PPA for 350 MW hydro power project this year
Thursday, August 10 2017 - 01:14 AM WIB
PT Bukaka Mega Investama (BMI), a subsidiary of IDX-listed engineering firm PT Bukaka Teknik Utama Tbk hopes to be able to sign a power purchase agreement (PPA) with state-owned electricity firm PT PLN this year for its planned 350 MW hydro power plant project in Kerinci, Jambi Province.
BMI Director Teguh Wicaksana Sari said that the company has completed negotiations with PLN including on the tariff of electricity from the proposed Rp 9 trillion power plant project.
?The negotiation process has been completed, PLN board is currently discussing it. Afterwards, it will be submitted to the Ministry of Energy and Mineral Resources for approval of the (electricity) tariff. Hopefully everything runs smoothly so that the PPA can be signed this year,? he told Petromindo.com on Wednesday.
?We?ll build four turbines, each with capacity of 87.5 MW. The technology will probably come from China. For funding, we have obtained support from one of the national banks,? Teguh said.
Once the PPA has been signed, BMI is expected to start construction process of the power plant project, which is targeted to start commercial operation in 2022.
Teguh said that construction process will take about five years to complete. The power plant will take advantage of the water from the Kerinci Lake.
The power plant will function as a peaker plant, with electricity output to be distributed via the Sumatra interconnection line.
Editing by Reiner Simanjuntak