PLN's plan to sign contracts with 26 IPPs may be delayed

PLN's plan to sign power purchase agreements with 26 independent power producers (IPPs) in January might be delayed because most of the IPPs wanted a revision in the pricing of their power, Investor Daily reported on Saturday.

Director General of Electricity and Energy Use in the Ministry of Energy and Mineral Resources Yogo Pratomo said in Jakarta on Friday that many IPPs demanded a revision in the pricing of their power due to an increase in crude oil prices and production costs.

"IPPs complain why the revision has not been made," he told reporters.

PLN reported earlier in the week that it would sign power purchase agreements with 26 IPPs in January as part of the company's massive program to cope with the shortage in the power supply outside Java.

The 26 power plants will comprise of small and medium-scale steam power plants, five mine-mouth power plants and one combined cycle power plant. Investment for the construction of the power plants, which will have total capacity of 1,000 MW, are expected to reach about US$1 billion. (*)