PLN seeks to sign PPAs for over 15,000 MW power plants by June

State-owned electricity company PT PLN has set a target to be able to sign power purchase agreements (PPAs) for 37 power plant projects with combined capacity of 15,533 MW by June of this year to help realize the government?s target to develop a total of 35,000 MW power plants until 2019.

This was said by PLN Director of Business for Sumatra Region Amir Rosidin in a statement issued by the company following campaign to introduce the new Presidential Decree No 4/2016 on the acceleration of electricity infrastructure projects.

Amir said that the issuance of the presidential decree will help resolve the lingering problems in power sector projects such as o land acquisition, permitting, and legal.

Amir said that the 35,000 MW power plant projects will require the development of more than 46,000 km of transmission lines, and 1,375 relay stations with combined capacity of 108,709 MVA, with projected investment requirement of US$72.94 billion.

He said that about 40 percent (around $29.2 million) will be spent on locally-made products and services. ?This is a huge investment and will create a great multiplier effect for the Indonesian economy,? he said.

Editing by Reiner Simanjuntak