PLN hopes to conclude renegoatitions of IPP projects in June
Thursday, March 18 2010 - 02:20 AM WIB
?We hope to speed up the process of the ongoing renegotiations that they can be concluded by June rather than September as previously planned,? PLN?s director for planning and technology Nasri Sebayang said in Jakarta on Wednesday.
He said that the renegotiations were currently being held in order to increase the participation of the private sector in providing power supply in the country. At present, IPPs contributes only about five gigawatt to the national electricity supply. PLN expected the IPPs contribution could be increased to 20 GW by the end of 2014.
According Nasri, the success rate of IPP projects is currently below 40 percent. For example, only about 18 of IPPs projects signed in 2007 were successfully developed. ?We hope to increase the success rate to 75 percent,? he added.
The main obstacles faced IPPs include the selling price of their power was too low compared to fuel and investment costs, includilng the swelling construction costs. (*)