Sarulla geothermal power priced at 6 U.S cents
Tuesday, February 9 2010 - 02:39 AM WIB
Director General of Electricity and Energy Utilization of the Energy and Mineral Resources Ministry Jacobus Purwono said that the adjusted power sale price would serve as a reference for solving the problem related to 42 independent power producers (IPPs).
He said that the adjusted price had been final but state electricity firm PT Perusahaan Listrik Negara (PLN) had yet to formally inform the agreement on the new price due to the absence of a legal umbrella which the company could use to set the price.
IDX-listed energy firm PT Medco Energi Internasional leads the consortium in the project which includes Japan?s Itochu Corp (25 percent), Kyushu Electric Power Co Inc (25 percent) and American firm Ormat Technologies Inc. (12.75 percent).
The consortium plans to develop 3x110MW power plant in Sarulla. Initially, the consortium and PLN agreed to set the price 4.6 cents per Kwh, but the consortium later asked for renegotiation, asking electricity price to be raised to 7 cents.
The Sarulla geothermal project will be constructed over the next five years in 3 phases of 110 to 120 MW each. The first power generating unit is expected to be operating within 30 months after the financial closing, while the remaining two units are scheduled to commence operation over a period of 18 months following the first unit.
The power to be delivered to the project under the planned 30-year contract will serve as the base load of PLN?s North Sumatra dan Aceh grid system. (bernard)