Paiton energy plan to develop additional power plants<\/p>\n
Moch. N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
PT Paiton Energy, the owner of the coal-fired Paiton I power
\nplant, is exploring the development of one or two additional
\npower units in Paiton, Probolinggo, East Java as part of its
\nexpansion program.<\/p>\n
Paiton Energy president Ronald P. Landry said late Wednesday
\nthe two power units would generate between 650 and 700 megawatts.<\/p>\n
The new power units will be built next to the existing plant.
\nThe US$2.5 billion Paiton I power plant, which consists of two
\npower units, has a power generating capacity of 1,230 megawatts.<\/p>\n
\"Paiton has agreed with PLN to look into this development,\" he
\ntold the Jakarta Post, referring the state-owned power monopoly.<\/p>\n
He noted however the plan was still at a preliminary stage.<\/p>\n
The company is still studying various aspects related to the
\nplanned project, including, among other things, sources of
\nfinancing, legal matters, and the economics of the project.<\/p>\n
He also said that it had yet had to come to an agreement with
\nPLN on the final pricing of the capacity and power to be provided
\nby the proposed plant.<\/p>\n
PLN's president Eddie Widiono said earlier that Paiton Energy
\nhad proposed to build the new power units as compensation for the
\nlatter's readiness to lower the power price from its existing
\nplant.<\/p>\n
Paiton and PLN reached a preparatory agreement last month,
\nunder which PLN will pay 4.93 U.S. cents per kilowatt hour over
\n40 years to Paiton Energy for power from Paiton I.<\/p>\n
PLN will also pay US$4 million per month for 30 years (a total
\nof $1.44 billion throughout the period) in \"restructuring costs\",
\nwhich include arrears and other claims.<\/p>\n
Both sides have been negotiating for years to resolve the
\ndispute over prices after PLN complained the price set in their
\noriginal contract was too high. The contract was signed in 1994.<\/p>\n
Paiton Energy is one of 27 independent power producers (IPPs),
\nwhich has signed power purchase contracts with PLN.<\/p>\n
PLN sells its electricity in rupiah, while it has to pay power
\nfrom IPPs in U.S. dollars.<\/p>\n
Paiton Energy is owned by U.S-based energy firm Edison Mission
\nEnergy, another U.S giant GE Capital, Japanese company Mitsui &
\nCo and local company Batu Hitam Perkasa, which is controlled by
\nbusinessman Hashim Djojohadikusumo.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/paiton-energy-plan-to-develop-additional-power-plants-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}