PLN delays PLTU Jawa-5 project
Tuesday, April 11 2017 - 03:25 AM WIB
State-owned electricity firm PT PLN has decided to postpone signing the power purchase agreement (PPAs) for power plant projects in Java with combined capacity of up to 9,000 MW.
PLN Procurement Director Supangkat Iwan Santoso Said Monday that the projects delayed include the planned 2x1,000 PLTU Jawa-5 coal fired power plant.
He added that the utility company decided to postpone the projects as Java is projected to have electricity surplus of up to 5,000 MW when existing projects and planned projects with combined capacity of 4,000 MW start operation. He said that PLN would sign the PPAs for the 4,000 MW projects, while PPAs for 9,000 MW projects would be put on hold.
?There are remaining 4,000 MW which have yet to be contracted. Meanwhile, we decided to put on hold other projects totaling 9,000 MW. Java is predicted to have excess electricity of 5,000 MW,? he said on Monday. No further details were provided.
This portal previously reported that PT Indonesia Power, PLN, was set to hold tender to select EPC contractor for the planned PLTU Jawa-5 in Banten.
Adi Suprijono, Business Development Director at IP, said that the company is currently waiting for direction from parent PLN for the planned tender.
A source said that IP has signed a MoU appointing IDX-listed PT Barito Pacific Tbk as partner in the project. IP was supposed to hold tender to select the partner amid interest expressed by some companies including Marubeni, Mitsubishi, Mitsui, and Sumitomo, as well as IDX-listed coal giant PT Adaro Energy Tbk.
Editing by Reiner Simanjuntak