PLN, Len sign PPA for solar power project

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has signed a Power Purchase Agreement (PPA) with state owned technology firm PT Len Industri on a solar power project in Kupang, East Nusa Tenggara province.

The PPA for the so-called PLTS Kupang project, was signed by PLN East Nusa Tenggara General Manager Richard Safkaur and Len?s President Director Abraham Mose on Friday in Jakarta, PLN said in a statement.

The power plant which will be built in Oelpuh village, Kupang Tengah district, Kupang regency, has a capacity of 5 Megawatt peak (MWp). Len won the project through a tender and the firm will invest Rp 120 billion for the project.

The solar power plant will generate 663.275 kWh at optimum operation, which is equal to 145,920 liters of diesel oil. Assuming the price of diesel oil at Rp 8,876 per liter, PLN will save Rp 1.3 billion per month by operating the solar plant rather than diesel plants.

PLTS Kupang is the first solar power project in the country to be built by an Independent Power Producer (IPP).

Commercial Operation Date (COD) is targeted to happen 18 months after the signing of the PPA at the latest.

Len has a solar module manufacturing plant in Subang, West Java. Now the firm can produce 10 MW solar panels but the firm is planning to increase the production to 60 MW this year.

Editing by Johannes Simbolon