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PLN stops agreement with Bekasi Power
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Two employees of state-owned electricity firm PLN walk at a power plant complex. (Kontan/Cheppy A. Muchlis)
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tate electricity firm PLN has suddenly stopped purchasing electricity from PT Bekasi Power, a subsidiary of publicly listed industrial estate developer PT Kawasan Industri Jababeka (KIJA), at the beginning of this year, 15 years earlier than planned.
PLN previously signed a power purchase agreement (PPA) with Bekasi Power (BP), through which the latter was obliged to supply electricity from its 130-megawatt (MW) combined-cycle power plant in the Jababeka industrial estate in Cikarang, West Java, to the former for a period of 20 years starting from Jan. 5, 2013.
Under the agreement, Bekasi Power was to ensure that its power plant operated with a minimum and maximum load of 108 MW and 118.8 MW respectively, while the plant’s availability factor should average at 90 percent per year.
“During the five years of the power plant’s operations, Bekasi Power always met its obligations,” KIJA president director Budianto Liman said recently in a statement.
“However, since the beginning of 2018, PLN’s load control center requested BP to provide zero kilowatt hours, a state known as reserve shutdown.”
Bekasi Power met with PLN on Feb. 9 to discuss the matter, but could not reverse the decision.
As there is a take-or-pay clause stated in the PPA, Bekasi Power will receive compensation from PLN. However, Bekasi Power stated that the termination of the agreement will lead to a significant decrease in its revenues.
