PKN may add 25 MW to power plant capacity
Tuesday, August 23 2016 - 02:06 PM WIB
Coal mining firm PT Pesona Khatulistiwa Nusantara (PKN) may add 25 MW new capacity to its existing coal-fired power plant in Sekayan, North Kalimantan province as the provincial government asked the firm to do so.
The firm will need at least $30 million in funding for the expansion project, PKN?s President Director Jeffry Mulyono told Petromindo on Tuesday in Jakarta.
?If (the additional capacity is) 25 MW, the investment (needed) is at least $30 million. The money will be provided by banks,? Jeffry said.
The exiting power plant operated by the firm has a capacity of 7.5 MW with 5 MW used by the firm for its own operation and 2.5 MW sold to the public through state owned electricity firm PT Persuahaan Listrik Negara (Persero) (PLN)
Jeffry noted that it is the expansion plan came following a request from the North Kalimantan governor, Irainto Lambrie. The firm initially planned to increase the power plant? capacity by 7.5 MW but the government said that was not enough, asking the firm to add 25 MW to the capacity. The expansion project is however not listed on the power projects approved by PLN in the firm?s 2016-2025 Electricity Supply Business Plan (RUPTL).
PKN has communicated the expansion plan to PLN. ?PLN proposed a power wheeling cooperation between us and PLN,? he said, adding that the expected negotiation with PLN can be completed within four months.
A private company can cooperate with PLN through two mechanism: First, the private company acts as independent power producer (IPP) which build a power project after signing a power purchasing agreement (PPA) with the state firm. Secondly, the private firm can act as Private Power Utility (PPU) which is granted a license to build a power plant and distribute the power to a certain area or for its own use The PPU however can send its excess power production to other areas using the transmission network of PLN as the electricity supply business permit holder (IUPTL). This practices is referred to in the industry as ?power wheeling?.
Jeffry said PKN has been granted a license to provide power to 300-ha areas.
Editing by Johannes Simbolon