PLN signs deal with CFK

State-owned electricity firm PT Perusahaan Listrik Negara (PLN) and PT Cahaya Fajar Kaltim (CFK) have signed an agreement on the sales of electricity from the 1x50 MW PLTU Embalut (expansion) coal-fired power plant.

The Power Purchasing Agreement (PPA) was signed on Tuesday by PLN President Director Nur Pamudji and his CFK counterpart Zainal Muttaqien in Jakarta, setting the price at Rp 759.23/kWh (coal price is assumed at US$66.55/ton).

The plant is currently being developed within the complex of PLTU Embalut Unit 1 and Unit 2 in Kutai Kartanegara, East Kalimantan, with a combine capacity of 2x22.5 MW. The Embalut (expansion) pushes up total power generation to 95 MW.

The Embalut (expansion) is a project with a Built, Own, Operate and Transfer (BOOT) scheme, with PLN taking over the plant from CFK as the developer after the contract expires in 25 years. Estimated to cost about US$85 million, the plant will commercially operate in 2015 and aims to supply the province?s power system.

CFK is also the Independent Power Producer (IPP) for PLTU Embalut Unit 1 and Unit 2.

Editing by Dadan Wijaksana