PLN to sign only two PPAs for mine mouth power projects next month
Friday, June 16 2017 - 02:44 AM WIB
Petromindo|Lucky
State-owned electricity firm PT PLN is likely to only sign two power purchase agreements (PPAs) for mine mouth coal-fired power plant projects in Sumatra and Kalimantan next month as other planned projects are not yet ready to be offered to investors.
This was said by PLN Procurement Director Supangkat Iwan Santoso on Thursday. PLN President Director Sofyan Basir said previously the utility planned to sign six PPAs for mine mouth coal-fired power plant projects in Sumatra and Kalimantan with combined capacity of 1,500 MW this month.
Supangkat said that the two PPAs to be signed in July are for a 2x300 MW mine mouth coal-fired power plant project in Jambi, and a 2x100 MW project in Central Kalimantan. ?Initially, we planned to sign the (two) PPAs in June, but because it?s close to the Idul Fitr holidays, it (the signing) is likely to be postponed to July,? he said, adding that two projects are targeted to be completed in 2019-2020.
Under the 2017-2026 electricity procurement business plan (RUPTL), PLN plans to procure 16 mine mouth coal-fired power plants with combined capacity of around 7,000 MW, of which nine will be located in Sumatra, and the remaining seven in Kalimantan.
Supangkat said that some of the planned projects will be assigned to its subsidiaries PT Indonesia Power and PT Pembangkitan Jawa Bali, which will be allowed to partner with private investors.
He previously said that the company hoped to sign the PPAs for the entire planned projects this year, but on Thursday he said that only six of the planned 16 projects are expected to be signed.
Editing Reiner Simanjuntak