PLN signs PPA with Tanjung Kasam on Batam power plant
Thursday, August 31 2006 - 09:42 AM WIB
President of PLN Batam Ery Ifyandri said on Thursday under the 30-year power purchase agreement (PPA), TKP would build two power units each the capacity of 55 Megawatt (MW) at the Tanjung Kasam power plant in Batam.
PLN, as an offtaker, will purchase power from the plant at Rp 424 per kilowatthour (KwH) on the assumptions that the dollar is valued at Rp 9,000 and coal is priced at US$25 per ton.
?The price has been agreed upon by the Minister of Energy and Mineral Resources,? Ery said following the ceremony to sign the PPA.
The PPA was signed by Ery and and TKP?s president Binarto Bekti Mahardjana.
The power plant is expected to start operation on March 31, 2009 for the first unit and on June 30, 2009 for the second unit.
The power plant will be constructed by China?s Dong Fang Electric Corporation, which won the engineering, procurement and construction contract (EPC) of the US$96.99 million power plant. The EPC contract was signed by Dongfeng International?s president Iwo Zhiqang and TKP?s president Binarto during the occasion.
The power plant will be fed with coal with calorie content of between 4,700 and 4,800 kcal/kg that will be supplied by Kideco. The firm is expected to supply 30,000 tons of coal to the power plant per month once it starts operation in 2009.
TKP is owned PT Petra Unggul Sejahtera, a subsidiary of Intraco Penta Group.
PLN?s generation and energy director Ali Herman Ibrahim said the PPA was initially expected to be signed in 2004. The delay in the signing of the PPA had made PLN to lose the opportunity of saving fuel cost amounting to Rp 905 billion. (Godang)