PLN welcomes Star Energi's decision to lower power price

State owned electricity company PLN has warmly welcomed the decision of Star Energy to lower the price of power to be produced from the company's second power plant to be built at its Wayang Windu geothermal power complex in West Java.

PLN's director for power generation and primary energy Ali Herman Ibrahim said in Jakarta on Tuesday that Star Energy's agreement to lower the price would pave the way for the resumption of the negotiation with PLN's management.

"We hope the negotiation could be finalized by the end of this week so that the construction of the new geothermal power plant could be begun," he said.

The negotiation between Star Energi and PLN on the construction of the new geothermal plant was halted recently after PLN demanded Star Energi to reduce the power price to below 5 US cent as it proposed.

Star Energi plans its second geothermal power plant in its Wayang Windu geothermal power complex. The new plant which will be built with total investment of about US$100 million is expected to begin operation in 2008, with total capacity of about 110 MW.

The existing Wayang Windu geothermal plant which began operation in early 2000 has the capacity to produce about 110 MW.

According to Herman, there would be additional power supply of about 770 MW from new geothermal power plants until 2010. The additional power supply will among others come from Lahendong III ( with a capacity of 20 MW/2008), Ulumbu ( 2 x 2.5 MW/2007), Ulubelu (2 x 55 MW/2009), Lumut Balai (2 x 55 MW/2010), Kamojang V ( 1 x 55 MW/2010), Tulehu (2.5 MW/2010), Mataloka (2.5 MW/2006), IPP Drajat (1 x 65MW/2007), Kamojang IV (1 x 65 MW/2008), IPP Sarula (300 MW/2009), IPP Bedugul (10 MW/2008), IPP Sibayak (15 MW/2008), and IPP Cibumi (10MW/2006). (dino)