PLN signs Rp 37.5 billion carbon credit sales

State-owned electricity company PT Perusahaan Listrik Negara (PLN) expects to receive about Rp 37.5 billion (US$=Rp 10,300) from the sales of carbon credits for the company?s PLTMG micro gas-fired power plant in Bontang, East Kalimantan in 10 years.

The emission reduction purchase agreement on the sale of the carbon credits was signed on Friday by PLN and the Britain-based green developer Agrinergy Pte.Ltd, which would facilitate the sales of the carbon credits in the world market.

PLN's director for environment and safety Assistia J. Semiawan said after the signing of the agreement that the deal was based on the ability of the 14-MW power plant to reduce gas emission for 10 years beginning the commercial operation of the gas power plant in 2010.

The agreement was the ninth carbon credits deals signed by PLN. Earlier the company had signed credit sales agreements for the company?s clean power projects including Kamojang geothermal power plant with EcoSecurities, Lahendong II geothermal power plant with World Bank and Lahendong III geothermal power plant with Japan Carbon Fund.

PLN could trade carbon credits for more than 60 percent of the 99 power plants to be built under the second phase of the 10,000 megawatt power development plan that would include the construction of 36 geothermal and 31 hydro power plants.

The ministry of energy and mineral resources estimated that the new hydro and geothermal plants could cut emissions by 28 million tons annually. This will enable PLN to secure up to US$280 million from the sales of the carbon credits. (*)