PLN signs 2 power agreements for North Sumatra
Tuesday, June 5 2012 - 02:54 AM WIB
State utility PT PLN has signed a power purchase agreement (PPA) with a consortium led by PT Irsac Power, and an agreement to buy power excess with PT Growth Asia, as part of its plan to further increase power supply in North Sumatra province, especially in Nias island.
The PPA was signed by PLN?s North Sumatra General Manager R. Krisna Sumbaputra, and PT Irsac Power President Director Kethireddy Narendrareddy at PLN Office building in Jakarta recently. At the same occasion, Krisna also signed the agreement to buy power excess with PT Growth Asia President Director Caterin Widjaja.
Also present during the signing ceremony were PLN Director for Western Indonesia Operation, Harry Jaya Pahlawan, and Gunung Sitoli Mayor Martinus Lase.
Under the PPA, PT Irsac Power will build a coal fire power plant (PLTU) with a capacity of 3 X 7 Megawatt (MW), on a 12-hectare area in Simanere/Dahana village, Gunung Sitoli Idanoi district, with an initial investment of US$35 million. The construction is scheduled for completion in 26 months.
PT Growth Asia is the operator of the biomass power plant (PLTU) in Medan Industrial Estate in Medan, North Sumatra, with a capacity of 10 MW.
It is expected that the additional power supply from the two independent power producers will further strengthen the electricity system in North Sumatra province, especially in Nias island.
?We?re ready to support the development of the new power plant in Gunung Sitoli. As a new municipality that was established in 2009, we badly need such infrastructure to help generate the growth of our local economy,? said Martinus.
At present Nias island relies on electricity supply from several diesel-fired power generators. The operation of the PLTU Nias is expected to reduce the use of diesel fuel in generating power in the island.
Editing by Benget Besalicto Tnb.