PLN agrees to pay 7-8.5 US cent per Kwh for IPPs
Monday, October 18 2010 - 02:30 AM WIB
The construction of about 25 IPPs has been delayed partly due to rising costs. PLN has agreed to renegotiate and to improve the pricing of their electricity. Two of new price agreements had been approved by the energy and mineral resources.
PLN?s director for risk management Murtaqi Syamsuddin said that two IPPs whose electricity prices had been approved by the government are 2x10 MW Tanjung Pinang coal-fired power plant in Riau Island province and 2x100 MW Jeneponto coal-fired power plant in S. Sulawesi.
He said that PLN agreed to increase the price of the electricity it would buy from the two power plants at a range of between 7 to 8.5 US cent per kilowatt hour (Kwh) on the assumption of coal price of $62.05 per ton and rupiah exchange rate of Rp 10,000 per US dollar.
He also said that around 17 IPPs are still waiting for approval from the Minster of Energy and Mineral Resources after undergoing verification by state comptroller BPKP and five other IPPs are still undergoing legal review by the ministry of energy and mineral resources
One IPP, that is the proposed Bangka power plant has been terminated.
PLN is expected to get more electricity from these IPP power plants with a combined capacity of 1,924 MW and all are coal-fired power plants. (*)