MMPP projects need government guarantee
Monday, September 23 2013 - 08:54 AM WIB
Mine mouth power plant (MMPP) project is perceived as the future of Indonesian electricity generation. That is why the MMPP project developers need government guarantee to make the project becomes reality.
"Government guarantee is a must. Otherwise, the MMPP project will not be implemented," Executive Project Director of PT. DH Energy Bambang Triharyono said on 3rd Annual Business Meeting of Coal Producers and Buyers in Legian, Bali.
He added that there is no single comprehensive policy in developing MMPP project. He also emphasized that MMPP project needs long term price formula from state-owned utility PT PLN (Persero) as a buyer, a price that will not influenced by coal price in international market.
Based on Electricity Power Supply Business Plan 2012-2021, Indonesia?s electricity demand is predicted to grow by 8.5 percent per annum until 2021, with 7.9 percent per annum growth on Java-Bali grid and 10.5 percent per annum outside Java-Bali grid. The electricity growth is mainly driven by industrial and household consumptions.
Editing by Johannes Simbolon