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PLN to open bid for giant Pemalang plant
State power company PT Perusahaan Listrik Negara (PLN) is planning on opening a bid in February for a 2,000 megawatt (MW) coal-fired power plant to be located in Pemalang, Central Java
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State power company PT Perusahaan Listrik Negara (PLN) is planning on opening a bid in February for a 2,000 megawatt (MW) coal-fired power plant to be located in Pemalang, Central Java.
PLN director for planning and technology Bambang Praptono said Thursday the project, which when finished will be the largest power plant in Indonesia, was the second phase in the government's 10,000 MW power plant project scheduled to be completed by 2014.
Companies which win the bidding process will sign a contract to become a third generation independent power producer (IPP). It will then supply electricity to PLN so it can be distributed under a set price.
Bambang said under the third generation IPP, the government would guarantee the project's sustainability, ensuring investors that the construction of the plant would not be terminated in the future.
Several foreign companies, including Germany's Siemens, Japan's Marubeni, France's Areva, and China's Huadian, have expressed interest in the bid for the project, which is estimated to cost around US$2.57 billion.
The government has estimated a financial cost of $208.7 billion for the development of the nation's electricity supply between 2008 and 2027, with around $172.2 billion to be set aside for constructing power plants.
PLN will also open the bidding process for other power plant projects in February, including 18 plants with a capacity of 7,000 MW in Java and 65 smaller plants with a capacity of just over 4,000 MW outside Java.
Nearly 60 percent of the plants will be powered by coal, 19 percent with geothermal energy, 10 percent with gas and just 3 percent with water.
This year, PLN needs Rp 57 trillion to finance its operations, including a large fund for the completion of the 10,000 megawatt (MW) coal-fired power plant program, scheduled to be finished in 2010.
PLN is due to have three new power plants completed in Java this year, with a total capacity of 1,245 MW.
