Wayang Windu agrees electricity price at 4,9 US cent per kwh

Star Energy, the operator of the PLTP Wayang Windu geothermal plant has finally agreed to lower its selling price to state owned electricity company PLN to 4,9 US cent per kilowatthour from 5 US cent previously, Media Indonesia reported on Thursday.

PLN's director for power generation and premier energy Ali Herman Ibrahim said in Jakarta on Tuesday that the agreement to lower the selling price from the second unit of Wayang Windu geothermal plant was made after a long process of negotiations with PLN.

Herman, however, said that PLN still had negotiation problem of the annual increase in the price based on 2,5% inflation rate. "We did not agree with the price escalation. We want a flat price," he added.

Star Energi plans to build 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 about110 MW.

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