BUSINESS

State Electricity Firm Signs 11 Contracts to Buy Clean Energy

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State-owned electricity company PLN president director Sofyan Basir (Antara/Wahyu Putro A)

With the latest agreement, the government has contracts with private companies to develop power plants that use renewable energy with a capacity of 548.57-MW, excluding those, that use geothermal energy.

State-owned electricity company PLN president director Sofyan Basir (Antara/Wahyu Putro A)

State-owned electricity company PLN has signed contracts with 11 companies that will produce renewable energy with hydro power as its energy sources.

The total capacity of the mini-hydro power plants is 291.4 megawatts (MW).

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PLN president director Sofyan Basir said in Jakarta on Friday that the private companies, which would act as independent power producers (IPP), would construct mini-hydro power plants in North Sumatra, West Sumatra, Bengkulu, Lampung, Central Java and South Sulawesi.

The contract was signed after PLN signed an agreement with 53 private companies in the form of power purchase agreements (PPA) on Aug. 2, with a capacity of 257.17 MW.

Sofyan explained that the PPA was based on Energy and Mineral Resources Ministerial Regulation No. 12/2017, while the IPP was based on Regulation No. 50/2017, which is a revision of Regulation No. 12.

Both regulations apply different local electricity supply costs (BPP).

Minister Ignasius Jonan said energy prices from the 11 companies were between US$6.62 kilowatt per hour and $8.60 per KWH, tempo.co reported.

With the latest agreement, the government has contracts with private companies to develop power plants that use renewable energy with a capacity of 548.57-MW, excluding those, that use geothermal energy.

The total capacity of power plants using renewable energy to be developed is expected to reach 1,300 MW by the end of the year.  (bbn, The Jakarta Post)

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