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PLN to sign agreements with nine renewable power producers
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State-owned electricity firm PLN's signage is seen above the company's building in Jakarta. (Antara/Zabur Karuru)
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tate-run electricity firm PLN has announced that it will sign power purchase agreements (PPAs) with nine independent power producers (IPPs) by mid-November.
The nine IPPs are set to build power plants based on renewable resources in various capacities totaling 640.45 megawatts (MW), PLN strategic procurement director Nicke Widyawati said in Jakarta on Thursday.
The largest project is a hydropower plant in Poso, Central Sulawesi, which is planned to have a capacity of 515-MW, with investment amounting to US$831 million.
It will be an expansion of the existing 195-MW power plant owned by Kalla Group’s Poso Energy. “This will become the largest hydropower plant in Indonesia,” Nicke told reporters in a press conference.
The second-largest plant located in Rantau Dedap, South Sumatra will use geothermal energy with a capacity of 86-MW.
The other seven -- all of which are micro-hydro power plants with accumulated capacity of 39.65 MW—will be constructed in Java, Sumatra, Sulawesi and West Nusa Tenggara.
“We expect the smaller plants to have started commissioning its plants between this year and next year. The two largest ones should begin operation by 2021,” said Nicke.
The Energy and Mineral Resources Ministry’s electricity director general, Andy N. Sommeng, who was also present at the conference, said all of the electricity generated from the nine future plants would be sold to PLN for between 8 US cents and 11 US cents per kilowatt hour (kWh).
