Inalum agrees barter electricity supply with PLN

PT Indonesia Asahan Aluminium (Inalum) finally agreed to supply 450 Megawatt-hours (MWh) for six weeks to state electricity firm PT PLN as part of barter agreement, Kompas reported on Friday.

 

Deputy Director of PLN for Generator Development Agus Darmadi said in Jakarta on Thursday that the energy barter agreement would be signed before North Sumatra provincial legislators.

 

“The duration does not match PLN’s request but the barter really helps reduce impacts of electricity deficit in North Sumatra and Nanggroe Aceh Darussalam,” he said.

 

PLN initially wanted the barter agreement to run for two months.

 

Inalum agreed to supply 90 MW for five hours per day to PLN during peak hours and PLN will supply 19 MW for 23 hours to Inalum in return. Earlier, Inalum was onlly willing to supply 40 MW per hour.  

 

North Sumatra and Nangroe Aceh Darussalam are now experiencing a power supply deficit of 320 MW.

 

Earlier, the government warned that it may not to extend the license of Inalum when it expires in 2013 and take over the management of hydro power plant Asahan that supplies power to the company. Inalum is a joint venture between the Indonesian government and a Japanese consortium. It produces aluminum in North Sumatra and but, according to the government officials, the firm has never made profit. (*)