Trinergy to sell Baturaden electricity below PLN benchmark price

PT Trinergy, a geothermal power developer, will sell electricity at US$0.095 per kilowatt-hour (kWh) to state utility company PT PLN from its geothermal power plant that will be built at Baturaden, Central Java, a company executive said.

Paul Suparmo, Director of Operations at Trinergy, was quoted by the Indonesia Finance Today as saying that PLN does not need to renegotiate the price as it is already below the benchmark price of geothermal electricity of US$0.097 per Kwh stipulated in the Regulation of the Minister of Energy and Mineral Resources No.2/2011.

He said the electricity purchase price is the result of the bid conducted by the Provincial Government of Central Java.

Paulus said Trinergy, through its subsidiary PT Sejahtera Alam Energy, will develop the Baturaden geothermal power plant in three stages: 110 MW in 2017, 70 MW in 2019 and 40 MW in 2021. To generate a total of 220 MW electricity, the company will drill about 50 to 60 wells.

Paulus said that the fund required to drill one geothermal well is around $6 million to $7 million. (*)