Tanjung Jati sets lowest power price
Tanjung Jati sets lowest power price
JAKARTA (JP): State-owned electricity company PLN will buy
power from PT Tanjung Jati Power Company at 5.74 U.S. cents per
kilowatt hour (kWh), claimed to be the lowest sales price ever to
be paid to a private generator in Indonesia.
PLN yesterday signed a power purchasing agreement with PT
Tanjung Jati which is building a US$1.66 billion power generation
plant in Central Java.
"We hope our selling price can be taken as the benchmark for
all private power projects in the future," said President
Soeharto's second daughter Siti Hediati Harijadi Prabowo, who is
Tanjung Jati's president commissioner.
The Tanjung Jati consortium is 30 percent owned by Tomen Power
Corporation (Asia) Ltd, a wholly-owned subsidiary of Japan's
Tomen Corporation, 30 percent by Britain's National Power, 20
percent by Siti's Maharani Paramitra and 20 percent by PT Bakrie
Power Corporation, another Indonesian private company.
The consortium won the project through a competitive bid in
1995 by defeating four other bidders.
The consortium is building a coal-fired power plant with a
generation capacity of 1,320 Megawatt (MW) in Tanjung Jati,
Jepara, about 80 kilometers northeast of the Central Java capital
city of Semarang.
It will operate the plant under a 30-year concession.
The plant is called Tanjung Jati A plant to differentiate it
from another power project in the area -- Tanjung Jati B plant --
which is being developed by PT Consolidated Electric Power Asia
(CEPA) of Hong Kong
The construction of the Tanjung Jati A plant is scheduled to
be completed in 2001. It will need about 4 million tons of coal a
year.
PLN's purchasing prices of private electricity under previous
agreements ranged from 6 U.S. cents to 7 U.S. cents per
kWh.
For example, the Paiton II power plant in East Java set its
price at 6.6 cents and the Sibolga A power plant in North Sumatra
at 6.55 cents.
The investors of the adjacent Tanjung Jati B plant initially
asked for 7.5 cents, before they lowered the price to 6.45 cents.
"Our sales price is okay. We will still get a fair profit
margin," said Siti.
Bakrie group's chief executive officer Tanri Abeng said the
consortium was able to set a low price because it succeeded in
negotiating lower pre-operating and construction and technology
costs.
Siti said 75 percent of the $1.66 billion investment would be
financed by foreign loans and the remainder by equity capital.
Many banks were interested to finance the project because they
considered it highly feasible, she said.
Minister of Mines and Energy I.B. Sudjana who witnessed the
signing of the agreement called on the consortium to involve
local companies in the project construction.
Sudjana said PLN had previously signed 23 power purchase
agreements with private companies. They would generate 9,055 MW,
of which 7,980 MW would be generated in Java and 1,075 MW in
Sumatra. (jsk)
Table: LIST OF PRIVATE POWER COMPANIES WHICH HAVE SIGNED POWER
PURCHASE AGREEMENTS WITH STATE OWNED ELECTRICITY COMPANY PLN.
No Name of Location Power capacity price to PLN
Projects (MW) (US cents/kWh)
----------------------------------------------------------------
1. Amurang N. Sulawesi coal 110 6,7
2. Cilacap C. Java coal 450 6,26
3. Cilegon W. Java coal 400 6,06
4. Paiton I E. Java coal 1,230 8,56 (1-6th yr)
8.1 (7-12th yr)
5.54 (13-30th yr)
5. Paiton II E. Java coal 1,220 6,59
6. Sibolga A N. Sumatra coal 200 6,55
7. Tanjung C. Java coal 2000 6,45
Jati B
8. Palembang S. Sumatra gas 130 6,48
Timur
9. Pasuruan E. Java gas 500 5,76
10. Sengkang S. Sulawesi gas 135 6,55
11. Bedugul Bali geothermal 220 7,15
12. Cibuni W. Java geothermal 10 6.9
13. Drajat W. Java geothermal 275 6,95
14. Dieng C. Java geothermal 150 9,81 (1-14th yr)
7,41 (15-22th yr)
6,21 (22-30th yr)
15. Kamojang W. Java geothermal 60 7,03
16. Karaha W. Java geothermal 220 8,46 (1-14th yr)
6,57 (15-22nd yr)
5,63 (23-30th yr)
17. Patuha W. Java geothermal 220 7,25 (1-14th yr)
5,63 (15-22nd yr)
4,82 (23-30th yr)
18. Salak 4,5,6 W. Java geothermal 165 8,46 (1-14th yr)
4,94 (15-30th yr)
19. Sarulla N. Sumatra geothermal 330 Not decided
20. Sibayak N. Sumatra geothermal 120 7,1
21. Wayang W. Java geothermal 220 8,39 (1-14th yr)
Windu 6,51 (15-22nd yr)
5,57 (23-40th yr)
22. Pare-Pare S. Sulawesi gas 60 6,02
23. Asahan I N. Sumatra Hydro 180 7,39 (1-15th yr)
3,45 (16-30th yr)
24. Tanjung C. Java coal 1,320 5,74
Jati A
Source: PLN's reports to the House of Representatives April 1, 1997.