KPC sells excess power in E. Kalimantan to PLN

East Kalimantan coal mining firm PT Kaltim Prima Coal (KPC) has signed an agreement to sell excess power from its new 3x18 MW coal-fired power plant in Tanjung Bara, Sangatta, East Kalimantan Province, to the state-owned electricity firm PT PLN for distribution to local households.

Local news portal Prokal.co reported that the power sale and purchase agreement was signed by KPC and PLN on Monday. KPC General Manager for Coal Processing and Handling Division, Poltak Sinaga said that the signing of the power sale and purchase agreement was made following MoU signed by the two firms in March.

Poltak said that in the initial stage, KPC will supply 5 MW of electricity to PLN, and will gradually increase to 18 MW in the near future. ?As has been said during the signing of the MoU, KPC will distribute power in the fourth quarter of this year after the completion of the new power plant,? he said.

KPC, a subsidiary of IDX-listed coal giant PT Bumi Resources Tbk, initially built a 3x5 MW coal-fired power plant in Sangatta for own use. The company, in cooperation with PT Citra Kusuma Perdana, later built a second 3x18 MW coal-fired power plant, also in Sangatta, to facilitate expansion of coal production.

The first unit of 18 MW started operation in October of last year, while the second and third unit started commissioning in recent months. Of the total 3x18 MW capacity, about 18 MW is allocated for PLN. (*)