PLN Signs for New Power Plants

State electricity firm PT Perusahaan Listrik Negara (PLN) signed an agreement with a consortium headed by Japan's Marubeni Corp to purchase power from a new power plant, Reuters quoted the energy minister as saying on Monday (20/8/07).

Purnomo Yusgiantoro told reporters that the consortium would construct a $750 million power plant and supply electricity to PLN for 4.363 US cents per kilowatt hour for 30 years. Commercial operation is expected to start by August, 2011.

The deal was signed in the presence of Japanese Prime Minister Shinzo Abe and Indonesian President Susilo Bambang Yudhoyono.

Marubeni controls a 32.5% stake in the consortium, Korea Midland Power Co holds 27.5% and two local firms, Tripatra Engineers and Construction and Samtan Co, hold 20% each.

Last year, PLN picked a consortium led by Marubeni to build a 600-MW coal-fired power plant in Cirebon, West Java. The project is expected to be completed in 2010.

Separately, PLN's president director Eddie Widiono said it had agreed to buy power for 4.64 US cents per kilowatt hour from the planned Sarulla geothermal power plant.

Last year, PLN awarded a contract to a consortium of Medco, Ormat Technologies and Itochu Corp. to build a 330-MW geothermal power plant in Sarulla in North Sumatra at a cost of $800 million.

Medco has a 62.25% stake in Sarulla, Itochu 25% and Ormat 12.75%.
PLN on Monday also signed a preliminary power purchase agreement with PT Paiton Energy Company, which will build an additional 800-MW coal-fired power plant at its existing facility in East Java, Dow Jones Newswires reported.

The Ministry of Energy and Mineral Resources said Paiton Energy will invest $720 million in the project expansion. The additional electricity will help PLN provide power to Java, Madura and Bali islands.

Indonesia has said it wants to add 24,000 MW of electricity by 2013 from projects estimated to cost $30 billion. PLN has a monopoly over power supply in Indonesia and has 24,000 MW of generating capacity, but most of its plants are ageing, so daily output is far below capacity. Some 30% of the plants use oil products such as diesel and fuel oil.
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