PLN to buy power from Chinese firm in West Papua

Public utility PT Perusahaan Listrik Negara (PLN) has agreed to buy excess power from PT SDIC Papua Cement Indonesia (SPCI), a Chinese firm, which is building a cement plant in Manokwari, West Papua, Antara news agency reported on Friday.

"PT SPCI, a Chinese investor, is building a cement factory in Maruni village, Manokwari with a a concession of 60 years. To meet its power needs, SPCI is building a coal fired power plant with a capacity of 20-25 MW. It will have an excess power of 10-15 MW,? Baris Sitorus, PLN?s Manager for West Papua and Papua regions, said.

?The excess power will be sold to PLN at a price of 10.61 US cents per kWh, which is in compliance with the Energy and Mineral Resources Ministry Regulation No. 13/2015, over a period of 25 years as of the start of the power supply,? he said.

The power plant is targeted for completion in May 2016.

?Based on our observation, the construction process has been running superfast. Most of the workers, including technicians and field workers, come from China with complete equipment,? he said.

The power will be supplied to the public in Manokwari, who are now receiving power from diesel power generators with a combined capacity of 17.5 MW and peak load of 16.8 MW.

Thanks to power supplies from SPCI, PLN will able to cut its diesel fuel consumption by 21 million liters per year and thus save Rp 155 billion in costs per year. (*)