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Solway Investment Group's Plant Project gets boost from PLN

State utility PLN recently signed a total of 13 power purchase agreements (PPAs) and a memorandum of understanding (MoU) with high-voltage customers.

Inforial (The Jakarta Post)
Jakarta
Mon, November 1, 2021 Published on Nov. 1, 2021 Published on 2021-11-01T17:44:31+07:00

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Solway Investment Group's Plant Project gets boost from PLN

S

tate utility PLN recently signed a total of 13 power purchase agreements (PPAs) and a memorandum of understanding (MoU) with high-voltage customers. PLN is expected to supply 2,270 megavolt ampere (MVA) for all its customers.

"This MoU is historic for PLN, the largest sale and purchase of electricity to date, 2,270 MVA," Imam Soejoedi, the deputy for investment procurement control at the Investment Ministry, said in his written statement at the signing event on Saturday. The electricity supply is expected to support the fulfilment of the energy needs of industry and business, as well as attracting investment.

The electricity supply will be distributed to numerous companies, including PT Aquila Cobalt Nickel. The president director of PT Aquila Cobalt Nickel, Riyanti Kutty Nurinda, expressed his hope that this cooperation agreement would facilitate the completion of project development and guarantee electricity supply, because of the location of the company’s factory in Morowali, Central Sulawesi.

By guaranteeing electricity to the factory, Nurinda also hopes that it will benefit local communities. PT Aquila Cobalt Nickel is a part of Solway Group, a private international mining and metals group located in Switzerland.

Nikita Novikov, principal of Solway Group stressed that the group was always committed to minimizing the environmental and carbon impacts of each activity. “Therefore clean and renewable energy solutions are also very important for our project. With this agreement, it is possible to obtain up to 100 percent of energy supply from renewable energy sources,” he said.

Other companies that will also receive PLN’s electrical supply are PT Huadi Nickel-Alloy Indonesia, PT Stargate Mineral Asia, PT Indonesia Tourism Development Corporation (ITDC), PT Wahana Lestari Investama, PT Sampoerna Kayu and PT Gebe Industry Nickel. Moreover, PLN’s energy supply also includes Renewable Energy Certificate (REC) products through PT Sumitomo Indonesia.

PLN’s director of commerce and customer management, Bob Saril, applauded companies that have been willing to encourage the use of new and renewable energy (NRE) through REC products. The REC is one of PLN's green product innovations aimed at allowing customers to purchase and gain international recognition for the use of renewable energy that already exists in Indonesia.

"Currently, PLN operates 7,936 MW of renewable energy power plants throughout Indonesia. Customers can clam NRE energy use through PLN's newest product, namely the REC," Bob said.

Imam added that through the full support of PLN, Indonesia can achieve development in 2045 by securing investment, which is the backbone of the domestic economy. It is believed that the collaboration will boost foreign investment in Indonesia and highlights PLN’s capacity to meet customer demand. Bob said PLN made a positive contribution to economic progress through supplying electricity for high-voltage customers.

South Sulawesi Governor Ali Mazi expressed his appreciation for the support PLN has given to his administration and region thus far. He described the signing as an example of PLN's commitment to reducing the gap in electricity distribution in the region, especially for the industrial sector, which has huge mining potential.

"In 2003 when I first became governor of Southeast Sulawesi, the total power of Southeast Sulawesi was only 5 MW, every day we had to take turns,” the governor said. “Today, after 10 years as governor, thank God, all household electricity demand has been met, there are no more blackouts."

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