PLN urged to move on PPA with Sabang project in Indonesia
Bay Sabang, Indonesia (source: flickr/ hartanto, creative commons)
Alexander Richter
13 Haz 2012
There still is no agreement on PPA pricing between state-utility PT PLN and Jaboi Geothermal Project Operator, PT Sabang Geothermal Energy due to no agreement on price.
Reported by local media, the Indonesian “state-utility PT PLN has yet to reach final power purchase agreement (PPA) with Jaboi Geothermal Project operator, PT Sabang Geothermal Energy (SGE) due to price issue.
“PLN only offers US$C9.75 per kWh while SGE demands at least US$C 14.5 per kWh,” ex-Chairman of House’s Commission VII Teuku Riefky Harsya told media this week.
He urged PT PLN to find solution on the issue as the electricity needs in Sabang area is ‘very crucial’.
“I personally hope PLN to reach an agreement with SGE this month, so the plant could generate electricity for our area by 2014. Aceh is full of geothermal potential. We have around 250MW potential in Seulawah, Krueng Raya, and Aceh Besar Regencies, while another 589.42MW in Gayo and Central Aceh Regencies,” Harsya added.
SGE was granted the geothermal concession in 2009 in order to develop a 70MW geothermal plant at Jaboi in Sabang, Aceh. The SGE price demand is lower than the previous price offer of US$C17 per kWh.”
Source: Indonesia Today
