PLN to sign PPA with Lestari Banten Energi
Monday, July 9 2012 - 07:28 AM WIB
State-owned electricity company PT Perusahaan Listrik Negara (PLN) is scheduled to sign a power purchase agreement (PPA) with PT Lestari Banten Energi (LBE) on Tuesday for electricity to be produced from the latter?s proposed 660-MW coal-fired power plant in Serang regency, Banten province, according to an industry source.
The source said Monday that PLN has agreed to buy electricity from the power plant at 5.99 US cent per kWh for a 25-year period, adding that the project would cost around US$1 billion.
The project, which does not feature an Indonesian government counter guarantee, is expected to commence operation in 2017, the sources added.
LBE is a 95%-owned by Lestari Listrik Pte Ltd, an indirect wholly owned subsidiary of Malaysian conglomerate Genting Berhad. The remaining 5% equity stake in LBE is held by PT Hero Inti Pratama.
Editing by David Mustakim