PLN signs PPA to buy excess power from Morowali?s power plant

State owned electricity firm PT Perusahaan Listrik Negara (PLN) signed on Wednesday a Power Purchase Agreement (PPA) to buy excess power from the coal fired power plant owned by mining firm PT Indonesia Morowali Industrial Park (IMIP).

Of the 2x65 MW capacity installed at the power plant, PLN will in the first phase buy an excess capacity of 5 MW to meet the power needs of Morowali regency in Central Sulawesi province.

The PPA was signed by PLN?s General Manager for Suluttenggo (North Sulawesi, Central Sulawesi and Gorontalo) provinces Baringin Nababan and IMIP?s CEO Alexander Barus in the presence of local governmental leaders.

PLN will purchase the power at Rp 728/kWh, PLN said, adding that by selling power from IMIP rather than power from its diesel power generator to customers in the area, PLN was able to cut its fuel costs. PLN should spend 12,300 kl per year per year to generate similar amount of power.

Following the agreement, PLN will build 20 kV distribution network which is expected to start operation in October 2016 and will enable PLN to get 1500 new customers.

Editing by Johannes Simbolon