PLN, Medco to sign N. Sumatra power purchase agreement in May
Thursday, April 26 2007 - 02:20 AM WIB
State-owned electricity company PLN is scheduled to sign a power purchase agreement (PPA) with a consortium led by publicly-listed national energy firm Medco Energi International for the power supply from the Sarulla geothermal power plant in North Sumatra in May this year.
The consortium is developing the 340 MW Sarulla geothermal power project worth US$600 million.
Japanese trading house Itochu Corp. and the U.S.-based manufacture company Ormat International Inc are the members of the consortium.
"We are still finalizing the contract with the consortium," Nasri Sebayang, PLN's deputy for independent power producers, said Wednesday.
Under the planned 30-year contract, the price of the power from the Sarulla power plant is 4.64 U.S. cent per kilwatt hour The construction of the Sarulla geothermal power plant is scheduled to begin in 2008 and to be completed in 2010, he said.
Nasri also said that PLN would soon open the tender for the construction of the Gorontolo geothermal power plant in North Sulawesi. "The preparation for the tender of the power plant which will have a capacity of 2 x 10 MW is under way," he said.
He also disclosed that besides the signing of Sarulla project, it would sign PPAs for the Cirebon 1x600 MW coal fired power plant (PLTU), the 2x60 MW Kaltim PLTU and other small-scale PLTUs in Palu, Nunukan and Kupang.
Following the signing of PPAs, contractors must settle financing for their power plant projects within 12 months, he went on. (godang/bernard)