Jonan wants lower electricity tariff from Sidrap wind farm phase 2
Thursday, November 30 2017 - 01:32 AM WIB
Minister of Energy and Mineral Resources Ignasius Jonan demanded a lower tariff for electricity to be produced from the proposed second phase 50 MW Sidrap PLTB wind power plant project in South Sulawesi Province, Bisnis Indonesia reported on Thursday.
The paper quoted Jonan as suggesting for the electricity tariff of the second phase project to be set at around 6 US cents per kWh, lower than the 11 cents per kWh tariff of the first phase 75 MW PLTB Sidrap project.
He said that the ministry requested for a lower electricity tariff because the PLTB Sidrap, unlike other renewable projects, is not based on built, operate, own, and transfer (BOOT) system, which means that PT UPC Renewables, the owner of the project, will still be able to own the power plant after the 30-year contract signed with state-owned electricity firm PT PLN expires. Developers of other renewable projects are required to transfer their power plants to PLN under the BOOT system after their contracts expire.
?If the tariff can be 6 cents per kWh, it?s quite okay. But if it is 11 cents per kWh, I will not sign (the proposed project expansion),? Jonan said.
As has been previously reported, UPC Renewables Indonesia plans to develop a second phase of the PLTB Sidrap with capacity of 50 MW.
The company is currently developing the first phase 75 MW PLTB Sidrap, which is targeted to start operation in the first quarter of 2018. The company is a consortium comprising of PT Binatek Energi Terbarukan, PT UPC Renewables Indonesia and AC Energy Holdings. (*)