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Indonesia power firm eyes deal with Sumitomo

 


September 16, 2008

Indonesia power firm eyes deal with Sumitomo
Indonesian state electricity firm PT Perusahaan Listrik Negara (PLN) expects to sign a power deal with Japan's Sumitomo Corp for the Tanjung Jati B power plant's expansion, Reuters quoted a PLN official as saying Monday.

Sumitomo plans to expand the coal-fired Tanjung Jati B power plant in Central Java by 1,320 megawatts (MW). The plant currently has a capacity of 1,320 MW.

"We have in principle agreed on the price of electricity at 4.3 cents per kWh for the Tanjung Jati plant's expansion," Fahmi Mochtar, PLN's president director, told reporters.

"We expect to sign the power purchase agreement next month. PLN needs the power plant badly."

Construction is expected to start in 2009 and commercial operations in 2012. Indonesian officials have said domestic electricity demand is growing at around 10 percent a year.

PLN's daily output is far below its 24,000 MW capacity due to old and inefficient plants.

Indonesia is trying to tap alternative sources of energy to meet rising power demand and cut consumption of expensive crude oil as its own reserves dwindle.

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