Government expects lower price from Paiton 3-4 developer
Monday, June 4 2007 - 01:43 AM WIB
The Indonesian government asked PT Paiton Energy Company, which would develop the 800 MW Paiton 3-4 coal fired power plant in East Java, to sell electricity from the project at a price of not more than 4.5 US cents per kilowatt hour (kWh), Tempo Daily reported.
Director General of Electricity J. Purwono said that the price limit is stipulated in Decree of the Minister of Energy and Mineral Resources No. 44/2006. Furthermore, the Paiton 3-4 power plant is an expansion project.
Pursuant to the regulation, the maximum price is set at 4.06 cents per kWh for power plants having a capacity of up to 25 MW, 4.75 cents per kWh for power plants having a capacity of 25-150 MW and 4.50 cents for power plants having capacity above 150 MW.
Earlier, PLN is set to appoint PT Paiton Energy Company (PEC) as the developer of the Paiton 3-4 coal fired power plant because its competitor, PT Jawa Power, has failed to submit bidding document by the deadline.
Both Jawa Power and PEC currently operate 1,220-MW and 1,320-MW power plants, respectively, in Paiton power complex in Situbondo, East Java. (*)