Dieng, Patuha power selling price seen at 6 U.S. cent per kwh

The power selling price of the Dieng geothermal power plant in Central Java, and Patuha in West Java should be at least 6 U.S. cent per kwh to compensate the huge cost and expenses, according to an expert.

The Indonesian Geothermal Association (API) secretary general Riki F. Ibrahim was quoted by the Republika daily as saying that the state-electricity company PLN would suffer huge losses if the power selling price was set in the range of 4.5-4.6 U.S. cent per kwh as offered by other power plants.

PLN and the state-owned oil and gas firm Pertamina will resume the development of the power plant projects, which were stopped by the government in the wake of the 1997 financial crisis. The suspension had caused the government to pay US$260 million compensation to U.S.-based OPIC which insured the projects, and another $140 million to lenders.

The government is enthusiast to immediately complete the projects so that revenue from them could be used to pay the claims.

Meanwhile, PLN president Edie Widiono declined to comment on the power selling price, saying that it was still being discussed. But he promised the price would be competitive.

He admitted that PLN could not enjoy much profit from the Dieng and Patuha power projects for around 13 years as revenue would mostly go to repay claims.(*)