Indonesia’s PLN signs power purchase deals with two geothermal producers

Mar 11, 2011 12:00 AM

State electricity monopoly PLN signed power purchase agreements with two geothermal producers, Pertamina Geothermal Energy (PGE) and Westindo Utama Karya (WUK), with a total capacity of 435 MW.
PLN president director Dahlan Iskan said that the signing was a “significant breakthrough” that would help the company boost the country's national electrification ratio that currently stood at 66 %.

“We still have to settle many issues with the geothermal project developers, but this signing is a step forward. We sign agreements to buy power from six geothermal projects. Five of them are operated by PGE,” he said before officially signing the deals.
The signing was a follow up of the government's newly issued regulation ordering PLN to buy power from geothermal producers at a ceiling price of 9.7 US cents per kWh, he continued. The decree aims to provide certainty on the future of many long-delayed geothermal projects in Indonesia.

The company's data shows that PGE, a subsidiary of state oil and gas firm Pertamina, will supply electricity from five geothermal-fired power plants in Lumut Balai in South Sumatera, Ulubelu in Lampung, Lahendong in North Sulawesi as well as Karaha and Kamojang in West Java, while WUK will channel power from the Atedei power plant in East Nusa Tenggara.

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