PLN to buy electricity from Serawak at $0.09/kWh

State electricity company PT Perusahaan Listrik Negara (PLN) has agreed to buy electricity from Serawak Electricity Supply Corporation (Sesco) at a price of US$0.09 per kWh, Bisnis Indonesia reported on Friday.

The pricing of the power purchase from Sesco was one of several points in the agreement signed by PLN and Sesco on Thursday.

PLN president director Nur Pamudji said that the price of the electricity to be bought from Sesco was almost equal to the price of electricity bought by the company from local coal-fired power plants.

Under the agreement, the electricity supply from Sesco would be distributed to West Kalimantan through Serawak-West Kalimantan power grid, Pamudji said, adding that for an initial step, Sesco will distribute 50 MW of power supply beginning the middle of 2015. The power supply can be increased up to 230 MW, depending on the readiness of Sesco.

Pamudji said that the Indonesian segment of the power grid would be built by PLN, while the Malaysian section would be built by Sesco.

PLN has said that the construction of the interconnection facilities for the power distribution from Serawak would cots about US$117.8 million. The Asian Development Bank (ADB) will provide $49.5 million and Francaise de Developpement $49.5 million, while the remaining $18.8 million will come from PLN?s own coffer. (*)