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Java 1 power plant finally a done deal
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State-owned electricity firm Perusahaan Listrik Negara (PLN) president director Sofyan Basir (second from left) and state-owned oil and gas giant Pertamina president director Dwi Soetjipto (third from left) pose along with other executives from the consortium who will construct the Java 1 power plant in West Java following the signing of a power purchase agreement for the project in Jakarta on Jan. 31. (JP/Viriya P. Singgih)
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tate-owned electricity firm Perusahaan Listrik Negara (PLN) has signed a power purchase agreement (PPA) with Jawa Satu Power, an incorporated joint venture mandated to develop the Java 1 combined-cycle power plant (PLTGU) after a prolonged disagreement.
Jawa Satu Power, formed by a consortium consisting of state-owned oil and gas giant Pertamina and Japan’s Marubeni and Sojitz Corporation, is expected to start the construction of Java 1 power plant worth US$1.8 billion in Karawang, West Java, within six months.
Meanwhile, the financial closure is slated for within a year.
“PLN puts high hopes on the Java 1 power plant, which is expected to strengthen the electricity supply chain around Java and Bali,” PLN president director Sofyan Basir said in Jakarta on Tuesday.
(Read also: 35,000 MW target on schedule: Luhut)
Java 1 power plant will have a total capacity of 1,760 megawatts, 10 percent bigger than its initial plan, and will supply electricity to PLN for 25 years under the PPA with a price of 5.5 US cents per kilowatt hour (kWh). The facility will have an annual availability factor of 60 percent instead of 92 percent that the consortium first requested.
On Oct. 26, 2016, PLN signed a letter of intent (LoI) that officially appointed the Pertamina-led consortium as the winner of the tender. Hence, the consortium was obliged to sign the PPA within 45 days of the appointment. However, Pertamina asked PLN to provide more time due to several disagreements over the requirements needed for the Java 1 project. (bbn)
