Price for three hydropower plants to be fixed next year: PLN

The power purchase agreement for three major hydropower plants to be built by independent power producers in Sulawesi and Sumatra will be signed next year, state electricity company PLN said.

PLN hoped that the price of electricity to be supplied by the three power plants - which include PLTA Karama, PLTA Kerinci and PLTA Batang Toru - would be lower than $0.9 per kWh. The construction of the three hydropower plants is estimated to absorb total investment of $2.91 billion (about Rp 26 trillion).

Head of PLN?s division for new and renewable energy Mochamad Sofyan said that the three hydropower projects would be tendered in the second semester of this year so that the power purchase agreements could be signed next year.

?According to the plan, the power purchase agreement for the three power plants will be signed in the first semester of 2012,? he said. He hoped PLTU Kerinci can begin commercial operations in 2017, PLTA Karama and PLTA Batang Toru in 2018, respectively.

PLTA Karama, with a capacity of 450 MW, will be built in West Sulawesi by PT Sulbar Group in cooperation with China Gezhoumba Group. The project is now in the process of a feasibility study.

PLTA Kerinci with a capacity of 350 MW will be built in Jambi by PT Kerinci Hydro Energy. The investment is expected to reach $510 million, meanwhile PLTA Batang Toru, with a capacity of 500 MW will be built in North Sumatra by KSO Dharma Hydra. Total investment is estimated at $1.2 billion. (*)