PLN ready to sign PPA with Supreme Energy

State owned electricity firm PT Perusahaan Listrik Negara (PLN) has agreed on all terms for the purchase of power from the geothermal power plants to be built by Supreme Energi in Muara Laboh, West Sumatra and Rajabasa, Lampung.

?This morning, the board of directors have agreed on the draft PPA (power purchase agreement) with Supreme Energi for Muara Laboh and Rajabasa power plants,? PLN?s director of planning and technology Nasri Sebayang on the sidelines of the Indo Geothermal 2011 conference in Jakarta on March 29, 2011.

Under the draft PPA, PLN will buy power from the 2x110 MW PLTP Muara Laboh power plant at the price of 9.5 US cents per kWh and power from the 2x110 MW PLTP Rajabasa power plant at the price of 9.4 US cents per kWh.

Nasri said a price escalation formula will be included in the PPA that is expected to be signed in April this year.

When asked about a possible guarantee that will be provided by the government for the projects, Director General of New and Renewable Energies Luluk Sumiarso said the government will only guarantee the business viability of PLN. ?The government will only guarantee the business viability of PLN, nothing else,? he said. (Godang)