TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
PLN secures 85% of funds for its part of 10,000 MW
State power utility PT PLN says it has secured about 85 percent of the financing requirement for its own contribution to the second 10,000 megawatt (MW) power program, covering the cost of about half of the overall program, a director said
Change Size
S
tate power utility PT PLN says it has secured about 85 percent of the financing requirement for its own contribution to the second 10,000 megawatt (MW) power program, covering the cost of about half of the overall program, a director said.
The program, expected to begin this year, will construct power plants with a total capacity of 10,677 MW. Of this total capacity, PLN will be responsible to build half of them, while the remaining capacity will be constructed and financed by independent power producers.
PLN’s director for planning and technology Nasri Sebayang said that to finish its portion, PLN would need as much as US$6 billion for its power plants and another $400 million for transmission systems.
“PLN has secured between 80 and 85 percent of the financing for its power plants. As for the transmission system, we believe we can easily find the financing,” Nasri told reporters Tuesday afternoon.
In the first 10,000 MW program, the government provided an unconditional guarantee in support of project financing; so it guaranteed the government would cover debts owed to developers during the construction stage. But for the second 10,000 MW program a 2010 presidential decree only stipulates government will still subsidize PLN.
Despite ending the guarantee to developers, Nasri gave assurances the second 10,000 MW program should not face financing problems.
“Some donor agencies only need the guarantee on the viability of PLN - this should be enough,” he said.
He added the international donors wanted to help finance the second 10,000 MW, because it will utilize renewable and clean energy.
Of the 10,677 MW capacity to be generated by the second 10,000 MW program, he indicated up to 11 percent will be generated from hydro power and 34 percent from geothermal energy, a reduction on the earlier estimates for this last source.
Nasri added that for existing power plants, PLN is upbeat it can switch its oil-fueled power plants to gas-fueled in a bid to reduce cost.
On Wednesday, PLN’s primary energy director Nur Pamudji said the company had secured two gas supply commitments from state oil and gas company PT Pertamina and state gas distributor PT Perusahaan Gas Negara (PGN).
He added that Pertamina would supply as much as 400 billion British thermal unit per day (bbtud) and PGN would supply the remaining 150 bbtud. “We expect to begin receiving gas in September, 2011,” Nur said.
He added that PLN was still looking for more gas supply as it wanted to further reduce its oil consumption which was the main factor leading to production costs.
Currently, PLN’s oil consumption is about 19 percent of its total energy consumption. The company expects to reduce this percentage to eight percent in 2012.
