Business

Power deals signed to up
electrification rate

The government signed on Tuesday a letter ordering state electricity company PT PLN to buy electricity from a geothermal producer and four others pending purchase agreements between the firm and the independent power producers (IPPs) to increase the national electrification ratio.

Energy and Mineral Resources Minister Jero Wacik said on Thursday that the deals involved power plants in South Sumatra, West Java, East and West Kalimantan and Papua.

“After signing the deals, construction on these power plants will begin. The projects will create 2,200 new jobs in the electricity sector,” Jero told a press conference at the ministry.

The IPPs will sign power purchase agreements with PLN before construction can start.

Data from the ministry in March shows that the national electrification rate currently stands at 67.63 percent. The ministry targets a national electrification rate of 72 percent this year and 73.65 percent in 2012.

PLN president director Nur Pamudji told the press conference that the power plants would operate in 2013 at the earliest.

PLN is obliged to buy power produced by the 1x40 megawatt (MW) Tampomas geothermal power plant in West Java, owned by PT Wijaya Karya Jabar Power. PLN will buy the power for 6.5 US cents per kilowatt-hour (kWh).

The government has also approved plans for PT PLN to buy electricity from the 2x100 MW Kaltim coal-fired power plant in East Kalimantan, owned by a consortium of PT Graha Power Utama and China National Electric Equipment Corporation, at 7.08 cents per kWh.

The 2x15 MW Jayapura coal-fired power plant in Papua will sell electric power at 12.02 cents per kWh. PT Sakti Mas Mulia owns the power plant.

“Although the plant’s capacity is small, it has a significant impact on people living in Papua. It helps
distribute electricity to small households in the region,” Jero commented on the power plant in Jayapura.

The 2x25 MW Pontianak-3 coal-fired power plant is located in West Kalimantan and will sell electric power at 9.10 cents per kWh. The plant is owned by a consortium of PT Leyand International Tbk, PT Panin Financial Tbk and PT Permata Prima Elektrindo.

The 1x110 MW Gunung Megang gas and coal-fired power plant in South Sumatra will sell electric power to PLN at an average of Rp 427.71 (0.05 cents).

The Gunung Megang power plant’s total capacity is 110 MW of an existing 2x40 MW plant and 1x30 MW expansion. The power is sold at Rp 350.92 and Rp 632.54 per kWh, respectively.

Once all the power plants are operational, Indonesia will get an additional electricity supply of 430 MW.

On Oct. 27, Jero also signed an agreement on the sale and purchase price of 55 million cubic feet of gas from Santos (Madura Offshore) Pty. Ltd. to PLN.

“They have a total of Rp 3.3 billion in transactions per day,” Jero said.

He also signed an agreement on the sale of 5 million cubic feet per day from Pertamina EP, the upstream business unit of state oil and gas firm PT Pertamina, to the 11 MW Jambi mini gas-fired power plant.

“Its revenue is upwards of $30,000 per day,” Jero said. (fem)

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