Govt approves Sarulla PPA
Thursday, April 11 2013 - 04:20 AM WIB
The government has approved on Thursday the second amendment of power purchase agreement (PPA) for the Sarulla geothermal power plant (PLTP) in Sarulla, North Sumatra; a move that would kick start the development of the massive geothermal project.
In a ceremony in the Office of Vice President Boediono, the approval was reported by Energy and Mineral Resources Minister Jero Wacik, which was also marked by the handing over of so-named Business Feasibility Guarantee Letter (SJKU) to PT PLN and PT Pertamina Geothermal Energy by Finance Minister Agus Martowardojo.
The second amendment of the PPA was signed on April 4 by PT PLN as the buyer of the electricity, PT Pertamina Geothermal Energy that operates the project and a consortium of Medco-Ormat-Itochu-Kyushu that constructs the plant.
Jero in his speech said the 330 MW plant is the biggest geothermal project in the country and will contribute greatly to the Sumatra?s power grid.
Under the PPA, PLN will buy power produced by the Sarulla geothermal power plant at the average price of 6.79 US cents per kWh.
PLTP Sarulla with a generation capacity of 330 megawatt (MW) is located in the geothermal working area (WKP) Sarulla owned by PT Pertamina Geothermal Energy (PGE) in North Tapanuli regency and South Tapanuli regency of North Sumatra province. PT PGE has appointed a consortium of Medco-Ormat-Itochu-Kyushu as its contractor that will construct and operate the geothermal power plant (PLTP).
The geothermal power plants will be built in two locations, namely in Silangkitang (220 MW) and Namora (110 MW). It will also build a 150 kV transmission with a length of about 15 kilometer from the two locations to the interconnection system owned by PLN in the area.
Editing by Dadan Wijaksana