28 November 2012
Signing of Power Purchase (Power Purchase Agreement / PPA) between PT PLN (Persero) and PT Meratus Jaya Iron & Steel

PLN, working together with another SOE, continued to improve and meet the power supply. On Wednesday (28/11) at PLN Headquarters, Jakarta there was held the signing of Power Purchase (Power Purchase Agreement / PPA) for Excess Power (Excess Power) of the Power Plant owned by PT Meratus Jaya Iron & Steel (MJIS), a company jointly owned by the two state-owned enterprises, namely PT Krakatau Steel (Persero) Tbk and PT Antam (Persero) Tbk.

The signing of the PPA conducted by PLN Regional General Manager of South Kalimantan & Central Kalimantan (Kalselteng) Yuddy Setyo Wicaksono and the President Director of PT Meratus Jaya Iron & Steel, Anwar Ibrahim, was witnessed by the PLN Operation Director of Eastern Indonesia, Vickner Sinaga; Human Resources Director of PT Krakatau Steel (Persero) Tbk, Dadang Danusiri and PT Aneka Tambang representative.

Yuddy Setyo Wicaksono explained that this partnership as a form of PLNs efforts to improve electricity supply in Batu Licin, South Kalimantan. "Excess Power of the power plants owned by PT MJIS will help to strengthen the electrical system in Batu Licin area. The excess powers are routed through the network of 20 kV Medium Voltage of Batu Licin Substation" explained Yuddy.

"The power plant owned by PT MJIS, that produce electrical energy using residual fuel gas from the rotary kiln plant unit, has began supplying power 4.5 Mega Watt (MW) to Batu Licin power system since its synchronization on November 23, 2012. Power supply will gradually increase to 9 MW in December 2012 and later when the second unit of the plant owned by PT MJIS is operating, its supply will increase to 20 MW, "said Yuddy.

HR Director of PT Krakatau Steel, Dadang Danusiri warmly welcomed the cooperation between PT PLN and MJIS. "We hope that the presence of PT MJIS can help local communities through its electrical energy generated power plant which is channeled through PLN, so it can assist PLN in serving the community", said Dadang Danusiri.

"Excess power cooperation is a concrete manifestation of PLNs efforts to improve electricity supply in South Kalimantan, especially this is non fuel power plant, so it will greatly assist us in making operational cost savings. In addition, this is a part of the SOE Synergy", said Vickner Sinaga, PLN Operation Director of Eastern Indonesia.

The price of PT MJIS excess power was Rp. 825/kWh. If it operated 20 MW would potentially reduce the use of fuel to PLN 38.500 kiloliters per year or equivalent to an approximately saving Rp. 1 billion per day. The company was building a 150 kV transmission from Asam-Asam to Batu Licin, and hopefully in January 2013 would be connected to the electrical systems serving the Barito power supply in South Kalimantan and Central Kalimantan.

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