PLN, Meratus Jaya seal power deal

State owned utility firm PT Perusahaan Listrik Negara (PLN) has agreed to purchase the excess power generated from a gas-fired power plant in South Kalimantan belonging to PT Meratus Jaya Iron & Steel, a joint venture of two other state firms PT Krakatau Steel and PT Aneka Tambang.

The power purchasing agreement was signed Wednesday in Jakarta by Yuddy Setyo Wicaksono, General Manager of PLN?s South and Central Kalimantan region, and Meratus Jaya President Director Anwar Ibrahim, PLN said in a media statement.

The agreement sets the price at Rp 825/kWh, but does not mention the volume.

?The excess power from the power plant will help support electricity system in the province, especially in Batu Licin,? said Yuddy.

The power plant initially generated 4.5 MW of electricity and is now reaching 9 MW. By the end of the year, in line with the coming on stream of the plant?s second unit, the power plant will generate up to 20 MW, PLN said in the statement.

Editing by Dadan Wijaksana