Indonesia's PLN to buy power from Indian IPP

Madhucon Project Ltd., an IPP from India, will sell electricity through an independent power producer mechanism at US$5.8099 per kWh to Indonesia's PT PLN.

This was announced by PLN president director Nur Pamudji, who added that the electricity sale was the first done by an IPP from India.

"The Indian investor will build Mulut Tambang South Sumatra 7 coal-fired power plant in South Sumatra with a capacity of 2x150 MW in the sub-district of Keluang, Musi Banyuasin, South Sumatra whose electricity production is to be sold to PLN," he said.

Madhucon Project Ltd. is cooperating with Madhucon Sugar & Power Industries Ltd. and PT Madhucon Indonesia to build the PLTU plant.

Nur said the investment for the project reached US$455 million. "The project is set to be completed in May 2016 or in 36 months since the financing date," he said.

The developer is given a year after the power purchase agreement or until May 2013 for a financing close.

The project is planned to receive funding from Indian Bank which is later to be verified by PLN.

"If funding and also other requirements set in the power purchase agreement have been met the financing date will be declared and after that construction will be done," he said.

The electricity to be produced bwill be distributed through Tapping T/L interconnection transmission with a capacity of 275 kV between Aurduri and Betung.

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