PLN aims to speed up signing of PPAs
Wednesday, April 27 2016 - 03:12 AM WIB
State-owned electricity company PT PLN aims to speed up the signing of power purchase agreements (PPAs) in a bid to help accelerate the development of the planned 35,000 MW power plant projects.
Speaking at a hearing with the House of Representatives Commission VII on energy and mining on Tuesday, PLN President Director Sofyan Basir said that PLN aimed to sign this year PPAs of proposed power plant projects with combined capacity of 17,000 MW-19,287 MW.
He said that the signing of the PPAs would pave the way for the power plant developers to reach financial closure of the projects, allowing them to begin construction process.
Sofyan said that last year, PLN signed PPAs for projects with combined capacity of 8,000 MW. Some of the projects have reached financial closure, while others are set to sign financial closure in May.
Among of the power plant projects that are set to soon start construction process are the 600 MW Tanjung Jati A coal-fired power plant project, 350 MW Lontar III coal-fired power plant, and 100 MW Kendari coal-fired power plant project.
Sofyan said that by the end of last year, PLN had signed PPAs of 62 power plant projects with combined capacity of 17,000 MW.
The current administration has launched an aggressive five-year program to develop a combined 35,000 MW power plants until 2019 in a bid to help accelerate economic growth. Initially, PLN was assigned to develop a total of 10,000 MW, with the bulk given to private power companies. Sofyan, however, said that PLN?s quota has been reduced to 8,000 MW.
Editing by Reiner Simanjuntak