PLN, PGE reach deal on geothermal price

State-owned electricity company PT. Perusahaan Listrik Negara (PLN) and PT Pertamina Geothermal Energy (PGE) signed on Thursday a Head of Agreement (HOA) for the revision of steam and electricity prices affecting geothermal power plants in eight locations.

Under the HoA signed by PLN President Director Nur Pamudji and PGE President Director Rony Gunawan, the electricity firm agreed on electricity purchase price of between 8.4-11.6 US cents per Kwh, PLN said in a statement.

The eight geothermal power plants affected by the new HoA include the following.
1. PLTP Sungai Penuh, 2 x 55 MW in Jambi
2. PLTP Hululais, 2 x 55 MW in Bengkulu
3. PLTP Kotamobagu, 4 x 20 MW in North Sulawesi
4. PLTP Lumut Balai, 4 x 55 MW in South Sumatera
5. PLTP Ulubelu, 2 x 55 MW in Lampung
6. PLTP Kamojang, 1 x 30 MW in West Java
7. PLTP Karaha, 1 x 30 MW in West Java
8. PLTP Lahendong 2 x 20 MW in North Sulawesi

The PLN statement also said that specifically for the Sungai Penuh and Hululais plants, both sides agreed on steam price of 7 US cents per Kwh.

PLN said that once the HoA has been approved by the Ministry of Energy and Mineral Resources, and verified by the State Finance and Development Supervisory Agency (BPKP), the two companies would sign on a new power purchase agreement.

Editing by Reiner Simanjuntak