Design capacity of Sumsel 8 project maintained at 2x620 MW

By Nova Farida

Petromindo|Boim

IDX-listed coal giant PT Bukit Asam Tbk (PTBA) has reached agreement with state-owned electricity firm PT PLN to not revise the original capacity design of the planned 2x620 MW PLTU Sumsel 8 coal-fired power plant project in South Sumatra Province.

This was said by PTBA President Director Arviyan Arifin to Petromindo.com on Wednesday. ?We have discussed it over with PLN and there?s no direction for revision (of the capacity) to 4x300 MW. It (the capacity design) is still the same. We have jointly made a review,? he said.

Arviyan said that the only revision in the previous power purchase agreement (PPA) for the estimated US$1.6 billion power plant project is the allocation of the power output, which was initially dedicated for Java Island, but has now been decided to be allocated for Sumatra.

He said that a revised PPA is expected to be signed at the end of this year, to pave way to start construction process with a target to complete it in 2019 or 2020.

PLN was previously required to develop a 500 kV transmission high voltage direct current transmission line linking Sumatra and Java to transmit electricity from the PLTU Sumsel 8 project, but the state utility decided not to proceed with the transmission line project.

PLN reportedly has earlier suggested PTBA to alter the initial design capacity of the 2x620 MW PLTU Sumsel 8 project to 4x300 MW as PLN fears that existing infrastructure transmission is not capable of accommodating large generating units especially as the 500 kV transmission line has been canceled.

PTBA is teaming up with China?s Huadian Group to develop the power plant project. The joint venture company called PT Huadian Bukit Asam Power has already completed acquisition of the required 103 hectares land for the project, which has obtained funding commitment among others from Bank of China.

Editing by Reiner Simanjuntak