PLN signs MoU to buy power from PLTA Merangin

State utility PT Perusahaan Listrik Negara (PLN) and PT Kerinci Merangin Hidro have signed a memorandum of understanding (MoU) on the plan to purchase electricity generated by the hydro power plant (PLTA) Merangin in Kerinci, Jambi province.

The power plant, which will be operated by PT Kerinci Merangin Hidro with a generation capacity of 350 megawatt (MW), will capitalize on the water from Lake Kerinci in Jambi.

The MoU was signed by PLN President Director Nur Pamudji and PT Kerinci Merangin Hidro President Director Achmad Kalla during a ceremony which was also attended by former vice president H Jusuf Kalla who represents the Kalla Group, Jambi Governor Hasan Basri Agus, and state bank BRI Director Sulaiman A. Arianto at the headquarters of PLN in Jakarta on Thursday.

Actually, the PLTA was planned in 2010, but it has been on hold since then. Both PLN and PT Kerinci Merangin Hidro have stated their strong commitment to revive the power plant project.

Following the MoU, both companies are expected to finalize a number of technical things so that a power purchase agreement (PPA) can be signed soon.

Editing by Benget Besalicto ST