PLN purchases excess power from MJIS
Tuesday, November 27 2012 - 11:25 AM WIB
State utility PT Perusahaan Listrik Negara (PLN) signed an agreement on excess power purchase with PT Meratus Jaya Iron & Steel (MJIS), a joint venture between PT Krakatau Steel and PT Antam.
"We purchase 20 megawatt (MW) power from MJIS. Today we?ve got around 9 MW. At the end of next month (December) we?ll get it full at 20 MW," said Vickner Sinaga, PLN?s Director of Eastern Indonesia Operation, in Jakarta on Tuesday (Nov. 27).
Vickner noted that the price of electricity bought by PLN was in line with the stipulation in the energy and mineral resources ministry?s regulation No. 4/2012 at Rp. 830 per Kwh. ?With the power purchase, PLN is able to reduce the use of oil fuel as its primary energy,? he said.
"MJIS generates the electricity by using the waste heat derived from its iron smelting process,? Vickner said, adding that the waste heat can generate power 24 hours a day.
According to him, the excess power purchase agreement can also be considered as a realization of synergy between state-owned companies that has been often promoted by State Entreprices Minister Dahlan Iskan so that they can reduce their dependence on the private firms.
Editing by Benget Besalicto Tnb