State-owned power company PT PLN has awarded contracts for the construction of three coal-fired power plants to have a combined capacity of 2,140 megawatts (MW) in the South Sumatra 5, 6 and 8 mining areas.

PLN planning and risk management director Murtaqi Syamsuddin revealed on Friday that PT DSSP Power Sumsel, a subsidiary of publicly listed firm PT Dian Swastika Sentosa, won the bidding for the South Sumatra 5 plant, which would produce 300 MW of electricity.

The 600 MW South Sumatra 6 plant was awarded to a joint venture by Korea-based Posco and DH Energy, while another joint venture between state coal producer PT Bukit Asam and China Huadian won the bid to build the 1,240 MW South Sumatra 8 plant.

“For South Sumatra 5, we have signed the power purchase agreement [PPA]. We expect to sign PPAs for South Sumatra 6 and 8 in the first half of this year,” Murtaq...