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Economy in brief: Financial closures for IPPs set early 2018
State-owned electricity firm PLN expects that 60 independent power producers (IPPs) can finish financial closure for their electricity projects early next year
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span>State-owned electricity firm PLN expects that 60 independent power producers (IPPs) can finish financial closure for their electricity projects early next year.
PLN strategic procurement director Nicke Widyawati said Thursday that the firm had given a six-month deadline to IPPs with which it had sealed deals in September.
After financial closure, they can begin construction of power plants sourced from new and renewable energy sources.
“They [the IPPs] are currently preparing for it,” Nicke said after a meeting with the House of Representatives’ Commission VII.
The number of IPP contracts this year jumped from only 16 in 2016 and 14 in 2015.
Nicke claimed that a faster and more centralized mechanism made the achievement possible.
Out of the 60 IPPs, 53 signed agreements with the government in August.
However, several IPPs of 11 mini-hydro power plants decided to pull out from the agreements as they demanded that the government re-review the electricity prices set out in the PPAs.
The incident has caused a setback for PLN, which initially wanted to have 64 IPPs with a combined power capacity of around 380 MW.
