President to inaugurate Tanjung Jati B coal-fired power plant
Friday, October 13 2006 - 01:50 AM WIB
The US$1.6 billion Tanjung Jati B coal-fired plant is one of the 26 private power projects that the government managed to renegotiate last June, Koran Tempo reported Friday.
According to a government source, the sale price of power set by the Tanjung Jati B is the highest price of power fired by coal. The sale price of Tanjung Jati B power is sold for 6 US$ cent per kilowatt hour (kWh), which is higher compared to 4.3 US$ cent per kWh sold by PT Paiton Energy.
PLN?s president director Eddie Widiono said that the government should restudy the sale price of Tanjung Jati B power plant.
?The price exceeds the initially agreed bottom price of 3.8 US$ cent and ceiling price of 5.6 US$ cent,? he said.
He said that the sale price of Tanjung Jati B power should be around 4.2 US$ cent per kWh, not 6 US$ cent per kWh.
One of the power generating unit of coal-fired power plant Tanjung Jati B started connection with the Java-Bali grid on April, 2006.
The power plant located in Jepara, Central Java has two power units each with the capacity of 660 MW. It is owned by PT Central Java Power (CJP), which is controlled by Japanese trading house Sumitomo. CJP has entered into a 20-year lease contract with PLN, under which PLN is responsible for the operation and maintenance of the power plant during the lease period. (*)