PLN has signed PPAs for 19,000 MW

By Cepi Setiadi

Public utility PT Perusahaan Listrik Negara (Persero) has thus far signed Power Purchasing Agreements (PPAs) for dozens of power plant projects, which are part of the 35,000 MW program, with a total installed capacity of 19,287 MW.

?As of the end of 2015, PLN had signed PPAs for around 17,340 MW. In the last two month, there were around 2,000 MW projects which signed the PPA," Minister of Energy and Mineral Resources Sudirman Said on Thursday (today) during a press conference.

Sudirman claimed that the 35,000 MW projects have thus far been progressing well, citing that around 5329 MW of the projects, owned by 24 Independent Power Producers (IPP) have achieved financial closing.

"Overall the progress is good. Every problems that emerge will be solved by PLN and IPP," he said.

Sudirman held a gathering on Thursday with 91 IPPs which have signed PPAs with PLN, in order to update the progress of the 35,000 MW projects. It was the third meeting that the ministry has so far held with the IPPs and associations in the industry. Also present at the gathering were officials from PLN.

During the meeting, Sudirman underlined that the 35,000 MW program was devised based on realistic economic assumptions.

?The 35,000 MW figures did not come out of the blue. The figures came as a result of careful calculation based on economic growth and population growth assumptions. 35,000 MW is not only a target but a need,? he said.

The IPPs expressed appreciation for the gathering

?We really appreciate this initiative. This is a very good opportunity to check whether the policies that have been issued by the government pay off or not. Furthermore, business players can directly inform (the government) about obstacles on the field,? M. Riza Husni, Chairman of Hydropower Developers Association, said.

The government is committed to facilitating efforts to solve problems faced by IPPs and PLN, Sudirman said.

During the gathering, the ministry and the IPPs also signed documents in which the latter promised to fulfill all requirements (technical, legal and financial) for their respective projects so that financial closing can be achieved on time.

In order to accelerate the development of 35,000 MW projects, President Joko Widodo on Jan. 8, 2016 signed Presidential Regulation No. 4/2016, which stipulates that PLN and IPP will get supports in the form of guarantee, speedy licensing and non-licensing process, primary energy provision, spatial affairs, and land acquisition.

Editing by Johannes Simbolon