PLN calls for govt ruling on S. Sumatra 9, 10 projects

State-owned electricity company PT PLN has issued a letter urging the government to quickly issue a ruling on the type of coal to be used for the South Sumatra 9 and 10 coal-fired power plant projects amid lingering polemic, Bisnis Indonesia reported on Monday.

In an August 6 letter, PLN defended its decision to require the winning bidders for the South Sumatra 9 and South Sumatra 10 mine-mouth power plant projects to use low rank coal with calorific value of 3,000 kcal/kg. This requirement has been criticized by some coal miners because it would inflate the power production cost.

PLN said that although the use of coal with CV of 3,000 kcal/kg would increase cost, it would provide greater benefit for the government including in terms of extra royalty from the optimization of the huge low rank coal reserves in South Sumatra. (*)