PLN may buy Inalum's hydropower plants

State-owned electricity company PLN may buy two hydropower plants from aluminum processing company PT Indonesia Asaham Aluminium (Inalum) in a bid to cope with the shortage of electricity supply in North Sumatra.

 

PLN's Director for Power Generation and Primary Energy Ali Herman Ibrahim said in Jakarta on Monday that buying the two hydropower plants currently being operated by Inalum was cheaper than constructing building a power plant of the same capacity. 

 

"If we are able buy the two power plants for about $400 million, it will be less costly (compared to constructing a power plant of the same capacity)," he said.

 

At present PLN has received a power supply of up to 90 megawatt from Inalum during peak hours as part of a barter deal with the aluminum producer to help cope with the power shortage in northern Sumatra. As part of the deal, during normal hours, PLN supplies about 40 megawatts to Inalum.

 

PT Inalum which is located in North Sumatra, operates two hydropower plants, that is the Sigura-gura power plant and the  Tangga power plant.

 

PLN said earlier that the power shortage in North Sumatra has grown to about 200 megawatts due to an increase in the demand. The additional supply from Inalum has reduced the power deficit to 110 megawatts. (Bernard)