why doesn't anyone post this? from Bakrie website
Monday, February 13, 2012
Bakrie Power and PLN Geothermal Sokoria Tariff Negotiations
by Indonesia Finance Today
JAKARTA, PT Bakrie Power, a subsidiary of PT Bakrie & Brothers Tbk (Bakrie & Brothers), will negotiate power purchase contracts (power purchase agreement / PPA) on the project work area Sokoria geothermal mining, East Nusa Tenggara with PT PLN (Persero), according to company executives. Discussion process a power purchase agreement was delayed because there is an error in the determination of the coordinates of the working area.
Ali Herman Ibrahim, president director of Bakrie Power, said the determination of the coordinates of the targeted Sokoria work completed by the end of February 2012. Power purchase contract talks are just beginning to rise again after the revised coordinates. "At this revision has been in the hands of the Minister," said Ali to the IFT, Sunday.
Although the revised Sokoria coordinates the work area, according to Ali, there was no change in pricing for geothermal power. Sokoria power price based on the results of the geothermal working area tenders organized local government amounted to U.S. $ 12.5 cents per kilowatt hour. "Current prices can not rise or fall, because the price of the tender," he explained.
M Sofyan, Chief, Division of Renewable Energy PLN, acknowledged the discussion a power purchase agreement with Bakrie Power was delayed because of the overlapping area between the coordinates of the working area and National Park Sokoria Flores. With the revision of these coordinates, the construction of geothermal plants with a capacity of 30 megawatts Sokoria will be gradual. "The first units of 5 MW will be completed in 2015, further extention 5 negawatt in 2016, the remaining 20 megawatts to be completed until 2020," Sofyan said.
In the discussion later on a power purchase agreement, according to Sofyan, PLN will merenegosiasikan prices because the price of electricity according to the work area Sokoria tender amounting to U.S. $ 12.5 cents per kilowatt hour, higher than the purchase price of geothermal benchmark set by the government of U.S. $ 9.7 cents per kilowatt hour. "For small-scale PLN willing to nego a business," he explained.
Komaidi Notonegoro, Deputy Director of the Reformation-Miner Institute, explains the error of determining the coordinates of the working area due to lack of coordination Sokoria cross-sectoral and cross-regional. "All the root of the problem is the weak coordination problem," he said.
Related to the selling price of electricity, expressed Komaidi geothermal power price is actually lower than PLN should use fuel oil to meet the electricity needs of local communities. Komaidi warned, the government has set a benchmark for the highest price for the purchase of geothermal electricity, PLN have to be careful. If the consequences imposed PLN will not receive subsidies from the government to purchase it as a benchmark electricity subsidies in the State Budget is based on the highest benchmark price.
PLN is advisable to communicate these issues with the government to seek a middle ground because of the utilization of geothermal energy is still more efficient than fuel oil.
Panax financed
Bobby Gafur Umar, Director of Bakrie & Brothers, said the project has worked with the company Panax Geothermal Limited, a company listed on the Australian Stock Exchange. They formed a consortium of PT Sokoria Geothermal Indonesia. In the project, Panax controlled about 45% stake in the project, the rest is owned by the Bakrie Group. "The cost of exploration derived from them (Panax)," he said.
In addition to the Sokoria, Bakrie and Panax will work on power projects, geothermal power Ngebel, Ponorogo, East Java with a total capacity of 165 megawatts. The Company won the tender Ngebel geothermal working areas in April last year. Geothermal power price to PLN Ngebel of U.S. $ 7.55 cents per kilowatt hour.
Indonesia's geothermal potential has currently reached 29 038 megawatts located in 276 locations. The potential is made up of 13 171 megawatts of resources and reserves 15 867 megawatts. Most potential in Sumatra and Java for 13 516 MW 9498 MW. []
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