Energy Minister instructs PLN to buy electricity from 5 IPPs

Energy and Mineral Resources Minister Jero Wacik has signed a letter, instructing state utility company PT PLN to purchase electricity from five independent power producers (IPP).

The energy ministry also approved the electricity price to be purchased by PLN.

The instruction shows the government?s support for the development of power plant projects by private sector through IPP scheme, the energy ministry said in a statement.

The five IPPs that received government support are: first, PLTP Tampomas owned by PT Wijaya Karya Jabar Power in West Java with capacity of 1x40 MW (6.5 cent US dollar/kWh); second, PLTU Kaltim owned by consortium comprises of PT Graha Power Utama and China National Electric Equipment Corporation with capacity of 2x100 MW (7,08 cent/kwh); and third, PLTU Jayapura owned by PT Sakti Mas Mulia with capacity of 2x15 MW (12.02 cent/kwh);

The two other IPPs that received government support are: PLTU Pontianak 3 owned by PT Leyand International Tbk, PT Panin Financial Tbk and PT Permata Prima Elektrindo with capacity of 2x25 MW (9,1 cent/kwh); and PLTGU Gunung Megang in South Sumatera owned by PT Meta Epsi Pejebe Power Generation with capacity of 2x40 MW ((Rp350,92/kwh) and expansion of 1x30 MW (Rp632,54/kwh).

Following the signing of the instruction letter, the IPPs will soon sign power purchase agreement (PPA) with PLN, which will be followed by the construction of the power plants. (godang/bernard)