PLN says it?s not hampering geothermal power project
Wednesday, July 25 2012 - 12:54 AM WIB
State-owned electricity company PLN dismissed suggestions that it was hampering the development of geothermal power projects in the country due to protracted price negotiation with the independent power producers.
Nasri Sebayang, PLN Construction Director, stressed on Tuesday that the company has not been engaged in the negotiation of the electricity selling price produced from geothermal as pricing policy is fully determined by the government.
He acknowledged, however, that the company has been involved in negotiation with the power producers over the terms and conditions of the contract.
?PLN will follow what has been decided by the government,? he said. The government has recently issued a regulation raising the selling price of electricity produced from geothermal to between 11-17 US cents per kwh from 9.7 cents per kwh previously in a bid to help encourage new investment in the sector. PLN will absorb the geothermal electricity, which Nasri said that in the future will become a major source of power along with coal.
Nasri also denied rumors that there would be a delay in the operation of the 2x55 MW Ulu Belu geothermal power plant. He said that the commissioning of the project is still on schedule, pointing out that the first unit would be operated at the end of August, and the second unit end of October of this year.
Meanwhile, Head of New and Renewable Energy Division at PLN, Mochamad Sofyan said that the company was not the obstacle to the progress in the development of geothermal power projects in the country.
He said that the main problems have centered in the issues of permit from the Ministry of Forestry as many of the projects are located in forest areas, and the expiry of the geothermal mining permit as the project has been delayed for too long.
Editing by Reiner Simanjuntak