PLN to sign PPA for three mine mouth power projects in September
Thursday, August 31 2017 - 03:33 AM WIB
Petromindo
State-owned electricity firm PT PLN hopes to be able to sign power purchase agreements (PPAs) for three planned mine mouth coal-fired power plant (PLTU) projects in September of this year, a delay from the initial target of July.
The three projects are mine mouth PLTU Jambi 1 in Sumatra, and PLTU Kalselteng 3 and PLTU Kaltim 5, both in Kalimantan, said Director of Strategic Procurement 2 at PLN, Supangkat Iwan Santoso on Tuesday.
He said that PLN is currently still in negotiation over the power tariff from the planned projects with the independent power producers (IPPs). He did not disclose the identity of the IPPs.
Under the current regulation, PLN can directly appoint developers or IPPs for mine mouth power plant projects, instead of going through the traditional tender mechanism.
He said that the most advanced progress is the procurement process for the PLTU Jambi I project. He added that the reserves at the coal mine for the Kalseteng 3 project has yet to obtain the JORC certification.
The three projects form part of more than 16 mine mouth PLTUs with combined capacity of nearly 7,000 MW to be procured by PLN in Sumatra and Kalimantan over the next 10 year period ending 2026.
Editing by Reiner Simanjuntak