PLN prepares new auction scheme for IPPs

State electricity company PT Perusahaan Listrik Negara (PLN) is preparing a new auction scheme for the construction of new power plant by independent power producers (IPPs), Bisnis Indonesia reported on Friday.

PLN?s president director Nur Pamudji said in Jakarta on Thursday that with the new auction scheme, a tender for the construction of new power plants by IPPs could be carried out faster. ?Under the new system, a limited auction would be opened to existing IPPs. So, they will be given a level playing field ,? he said.

At present, PLN has two aution methods for the construction of power plants by IPPs. The first one is an open tender for all IPPs, such as the auction of PLTU Sumsel 9 and 10 mine-mouth power plant. The second one is an expansion tender which is offered to an IPP within the same location such as PLTU Tanjung Jati and PLTU Paiton coal-fired power plants.

The third auction which is now under preparation would be open certain IPPs, which have already operated, he said, adding that the new system is expected to be able to quicken the process of the tender as the participants have already had experiences in the operation of power plants. (*)