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PLN, Energy Dynamics power up for NTB
State-owned utilities firm PT Perusahaan Listrik Negara (PLN) has agreed to purchase power from PT Lombok Energy Dynamics, Lombok, West Nusa Tenggara (NTB) to meet electricity needs
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tate-owned utilities firm PT Perusahaan Listrik Negara (PLN) has agreed to purchase power from PT Lombok Energy Dynamics, Lombok, West Nusa Tenggara (NTB) to meet electricity needs.
According to a power purchase agreement (PPA) signed in Jakarta on Friday, Lombok Energy will be responsible for providing the electricity for a period of 25 years, with the electricity price set at 9.18 US cents per kilowatt per hour.
Lombok Energy will build two 25 megawatt (MW) coal-fired power plants in Sambelia subdistrict, East Lombok regency. Lombok Energy president director Banu Pradipto said the Rp 800 billion ($79.44
million) plants' construction were expected to complete within 22 months once it reached a loan
agreement with a bank.
About 30 percent of the investment will come from Lombok Energy's own cash and the rest from loans from 'the right banking partner' Banu said he was still looking for.
An engineering procurement construction (EPC) firm, Lombok Energy is owned by a consortium consisting of PT Temprina Media Grafika, PT Rubik DNA Capital and PT Kaltim Electric Power, which also runs the Embalut coal-fired power plant in East Kalimantan.
According to PLN president director Nur Pamudji, Lombok still relies heavily on diesel power plants for its electricity. The island currently only has one 25 MW coal-fired power plant in Jeranjang. 'We are looking to start operating two more coal-fired power plants with the same capacity in Jeranjang by year-end,' he said.
Data from PLN shows that the daily peak load in Lombok reaches 160 MW, while daily capacities of the existing and future power plants in Lombok will stand at 178 MW.
Nur said PLN would be able to save Rp 890 billion per year in diesel fuel costs with Lombok Energy's future plant.
PLN has started to establish a high-voltage electricity transmission network as well around the island to cope with higher electricity demands. Vickner Sinaga, PLN operations director for eastern Indonesia, said the network stretched around 300 kilometers. 'Hopefully the network will have been fully established before 2016,' he said.
In connection with PLN's 10,000 MW fast track program, Nur said 80 percent of the power plants under that program would start producing electricity by the end of 2013 and the rest in the following year.
