PLN and 11 IPP reach new price agreement. (Mines And Energy).After time consuming and brain racking negotiations, the government represented by the state-owned electricity company PLN PLNIn currencies, this is the abbreviation for the Polish Zloty. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. and 11 independent power producers (IPP (Internet Printing Protocol) A protocol for printing and managing print jobs over the Internet using HTTP. Initially conceived by Novell, Xerox and others, the IETF made it a standard in 2000 that includes authentication and encryption. See printing protocol and LPD. ) reached an agreement on power price in October 2002. The agreement will save the government between US$ 4.7 billion to US$ 5.45 billion in power price. The government has sought to renegotiate with IPP price agreement already signed under previous government known as power purchase agreement (PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia ). The previous PPA was tarnished with corruption, collusion and nepotism nep·o·tism n. Favoritism shown or patronage granted to relatives, as in business. [French népotisme, from Italian nepotismo, from nepote, nephew, from Latin involving officials in the highest ranks in the previous government of President Soeharto. In the renegotiation, both the government and IPP reviewed the cost of power generating projects as the power price was based on the project cost. As a compensation for the price cut the government offered new power generating projects such as in the case with PT Paiton Energy Company (PEC). Under that system, PEC agreed to reduce the price of its power from PLTU PLTU Pct Line and Trunk Unit Swasta I from US$ 0.055 per kWh to US$ 0.0493 and the price of power from its PLT PLT psittacosis-lymphogranuloma venereum-trachoma (group); see Chlamydia. PLT psittacosis-lymphogranuloma venereum-trachoma (group). Paiton II was cut from US$ 0.066 to US$ 0.0468 per kWh. Before the new agreement was reached, PLM (Product Life cycle Management) A comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement. Sometimes called the "digital backbone" of a product, it includes the requirements phase, analysis and design paid the IPP under the old contract. Rupiah ru·pi·ah n. pl. rupiah See Table at currency. [Hindi rupay  , rupiy price was fully paid and dollar price was
renegotiated because of the fluctuation in exchange rate.
Out of 27 IPP projects only 8 have been operational or ready for operation. Renegotiations with the 8 IPP have been thrashed out with the signing of an interim agreement to be followed with the signing of a final agreement. The eight IPP are PT Tenaga Listrik Amurang (110 MW), PT Paiton Energy Company (1,230 MW), PT Unocal Geothermal Indonesia (165 MW), PT Himpurna CalEnergy Ltd (100 MW), PT Magma Nusantara Ltd (100 MW), PT Energy Sengkang (135 MW), PT Makasar Power (60 MW) and PT Jawa Power (1,220 MW). Before the agreement, the eight IPP were threatened with being almost left lying idle as PLN stopped buying electricity from them despite growing demand for power especially from the industrial sector. PLN bought power only at a reasonable price. Under the old PPA, PLN would suffer heavily as it selling price to its consumers was much lower than its purchasing price from IPP. Despite the new price agreement, PLN still needs to raise its selling price to cover its production cost. Based on its calculation, an ideal electricity basic price is US$ 0.07 per kWh until 2003. PLN also still needs to build new power transmission networks in Java-Bali interconnections system. A number of contractors have eyed the project. Delay in the construction of the transmission project could disrupt power distribution system in Java-Bali especially in Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. and the southern part of West Java where PLN has not built transmission systems for power generated by IPP. Those areas have to rely on the old transmission networks with limited capacity. Blackout, therefore, is more frequent in those areas. Previous to the new agreement, PLN stopped buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. from PT Cikarang Listrindo in June 1998 following the monetary crisis. The PPA contract with the company was to last from 1996 to 2016. PLN has regularly bought electricity from four other power planst--Perum Otorita Jatiluhur, PT Energi Sengkang, PT Nusantara Unocal and PT Makassar Power Corp. A new transmission system will be built from the PLTGU Sengkang to cope with bottleneck in the power distribution. PLN has decided to close six IPP projects namely PLTU Tanjung Jati Noun 1. jati - (Hinduism) a Hindu caste or distinctive social group of which there are thousands throughout India; a special characteristic is often the exclusive occupation of its male members (such as barber or potter) A, PLTU Tanjung Jati C, PLTU Cilacap, PLTU Serang Se`rang´ n. 1. The boatswain of a Lascar or East Ondian crew. , PLTU Cilegon and PLTU Pasuruan. PLN to build LNG LNG (liquefied natural gas): see under natural gas. terminal To cope with scarcity in gas supply to a number of power plants, PLN plans to build a new LNG terminal with a capacity of 500 million to 750 million cu.ft in West Java. The project will cost US$ 250 million--US$ 300 million. With the facility, PLN would be able to supply fuel for power plants with a total capacity of 2,500 MW in Jakarta and West Java. In addition, PLN plans to build a new gas steam power plant, PLTGU Muara Tawar with a capacity of 600 MW in Bekasi, West Java. Currently the feasibility study on the project is in progress handled in cooperation with BP Indonesia. Pertamina has also said its commitment to supply LNG for PLN from its gas-fields in Donggi, Central Sulawesi. Meanwhile, Medco Energi International plans to supply gas from its Senoro gasfield.
Table - 1
New price agreement with 11 IPP, 2002
(U.S. cents/kWh)
Project IPP Capacity
(MW)
PLTP Darajat Prasarana Nusantara 275
Jaya, PT
PLTU Paiton I Paiton Energy 1,230
Company, PT
PLTU Paiton II Jawa Power, PT 1,220
PLTP Gunung Salak Unocal Geothermal 330
Indonesia
PLTGU Sengkang Energy Sengkang, PT 135
PLTU Amurang Tenaga Listrik 110
Amurang, PT
PLTU Sibolga Tenaga Listrik 200
Sibolga, PT
PLTGU Palembang Asrigita Prasarana, PT 130
PLTU Tanjung Jati HI Power Tubanan I 1,320
B
PLTD Pare-Pare Makasar Power, PT 60
PLTGU Cikarang Cikarang Listrindo, PT 150
Project Price under New price
old contract (US$ cent
(US$ cent per kWh)
per kWh)
PLTP Darajat Steam - 4.3 3.15
Electricity - 6.95 4.2
PLTU Paiton I 8.5 4.93
8.2
5.5
PLTU Paiton II 6.6 4.68
PLTP Gunung Salak Steam - 4.7 3.7
Electricity - 8.5 4.45
PLTGU Sengkang 6.7 4.42
PLTU Amurang 6.7 4.65
PLTU Sibolga 6.55 4.6
PLTGU Palembang 6.48 4.2 - 4.41
PLTU Tanjung Jati 5.73 3.66 - 4.4
B
PLTD Pare-Pare 6.21 5.71
PLTGU Cikarang 5.99 4.47
Source: Team of President Decree No. 133/Data Consult
Table - 2
Power purchase contracts between PLN and IPP
Company Location Fuel Capacity
(MW)
POJ *) Purwakarta, Water 150
West Java energy
Cikarang Cikarang, Gas 150
Listrindo, PT West Java
Energi Sengkang, Gas 135
Sengkang, PT South
Sulawesi
Nusantara Salak, West Geothermal 165
Unocal, PT Java
Makassar Pare-Pare, MFO/Gas 60
Power Corp., South
PT Sulawesi
Total 660
Company Period AF **) Minimum
(%) purchase
(%)
POJ *) 1990 - ***) - -
Cikarang 1996 - 72 -
Listrindo, PT 2016
Energi 1997/1998- 80 56
Sengkang, PT 2017/2018
Nusantara 1997/1998- 85 -
Unocal, PT 2028/2031
Makassar 1997 - 80 -
Power Corp., 2012
PT
Total
*) POJ = Perum Otorita Jatiluhur
**) AF = energy availability factor to be absorbed by PLN;
***) until time not fixed
Source: PLN/Data Consult
Table - 3
IPP projects cancelled by PLN, 2002
Name of projects Location
PLTU Tanjung Jati A Central Java
PLTU Tanjung Jati C Central Java
PLTU Cilacap Cilacap, Central Java
PLTU Serang Serang, Banten
PLTU Cilegon Cilegon, Banten
PLTU Pasuruan Pasuruan, East Java
Source: Team of President Decree No. 133/Data Consult
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