State-owned power firm, PT PLN, on Tuesday (16/1/07) signed 10 power purchase contracts with local companies, which will build small power plants outside Java.
The combined electricity PLN will buy from these companies will total 850 MW, PLN director Ali Herman Ibrahim was quoted as saying by Dow Jones Newswires. "We expect the (planned power plants) to start commercial operation in the next 30 months," he said, without specifying the electricity generating capacity of each independent power plant.
This year, PLN plans to buy a total of 500 MW in additional electricity supply from independent power producers operating power plants outside Java, such as in Sumatra, Kalimantan and Sulawesi, he said.
PLN is inviting investors to build power plants across Indonesia to help meet rising domestic demand for electricity, especially on the main island of Java. However, these independent power producers cannot supply electricity directly to consumers. PLN will buy the electricity generated to sell to its customers.