PLN signs a renewable PPA with Supreme Energy

State utility PT Perusahaan Listrik Negara (PLN) has signed a power purchase agreement (PPA) with PT Supreme Energy Rantau Dedap, a consortium of PT Supreme Energy, GDF Suez, and Marubeni Corporation, which will develop geothermal power plant (PLTP) Rantau Dedap with a generation capacity of 2 x 110 MW in Muara Enim, South Sumatera.

The company said that the PPA signing was part of effort to increase the power supply in Sumatra island and to improve the energy mix through the development of renewable energy. The PPA was signed at the ministry of energy and mineral resources on Monday.

The PPA was signed by PLN President Director Nur Pamudji and PT Supreme Energy Rantau Dadap President Director Supramu Santosa, and was witnessed by Energy and Mineral Resources Minister Jero Wacik.

The PLTP Rantau Dadap is part of the second fast track program of 10,000 MW power development, which prioritizes the development of power from renewable energy.

The first unit of the geothermal power plant is expected to start operation in January 2017 and the second one will be in March 2017. The power price agreed for the power plant was at 8,86 US cents per kilowatt hour (kWh).

Editing by Benget Besalicto Tnb.