Pertamina prepares second phase HoA for 10,000 megawatt program

The Jakarta Post   |  Fri, 05/22/2009 5:54 PM  |  National

State oil and gas company PT Pertamina is preparing to sign a head of agreement (HoA) with state electricity company PT PLN in the second phase of the government-sponsored 10,000 megawatt (MW) power plant program.

“[The agreement] is still being processed; we hope to sign in June,” Pertamina’s spokesman Adiatma Sardjito said Friday in Jakarta as quoted by tempointeraktif.com.

The agreement will arrange the development of 15 geothermal power plant projects.

Adiatma said Pertamina could either manage the projects totally and supply electricity to PT PLN or leave the generator construction projects to the state electricity company and only supply the geothermal energy needed for the plants to produce electricity.

“Whichever we are most ready to do, that is what we will opt for,” he added.

However, Adiatma said, the agreement is yet to include the pricing for the geothermal energy or the electricity that Pertamina will supply to PT PLN.

“This is only the HoA; we will have other agreements [which will include pricing],” he said.

The second phase of the crash program involves a significant proportion of alternative energy sources, with geothermal energy generating 4,733 MW, hydropower 1,174 MW, and coal and gas the remaining 4,056 MW. (adh)
 

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