State electricity company PT Perusahaan Listrik Negara (PLN) and independent power producer Amoseas Indonesia Inc have agreed on the price of electricity generated from Darajat III geothermal power plant in Garut, West Java, Bisnis Indonesia newspaper reported on Thursday.
Both companies have agreed on an electricity contract under which Amoseas will sell around 110 megawatts (MW) at a price above US$0.05 per kilowatt-hour (kWh) to PLN.
?Yes, we have agreed on the base price of US$0.042 per kwh and later it will slowly become above US$0.05,? director of primary energy and power generation Ali Herman told Bisnis in Jakarta on Wednesday.
Amoseas president director Bernie McCloskey said his company expects Darajat III?s power price will be higher than the agreed price.
Previously, Amoseas restructured its electricity price in case of Darajat II from US$0.095 per kWh to US$0.042 per kWh and from US$0.043 per kWh to US$0.0315 per kWh for steam.
Ali Herman said Darajat III geothermal plant will be built while paying attention to the interests of the local people. The plant will employ local people.
Over all, the investment in geothermal sector is attractive due to large geothermal reserves in the area.
According to McCloskey, Indonesia has 20,000 MW geothermal reserves or 40 percent of the total world reserves.
The Darajat Unit III geothermal power project is projected to have lifetime of 40 years, according to Amoseas?s presentation in September. In the presentation, the company also said that the project would cost around US$160 million-$220 million.
Two geothermal power plants are currently running in the geothermal complex namely the 55 MW Darajat Unit I, which is operated by PT Indonesia Power, and the 70 MW of Unit II is operated by Amoseas. Their electricity is sold directly to state power firm PT PLN.
Amoseas, wholly owned subsidiary of U.S. oil giant ChevronTexaco, also operates North Duri Co-generation Project in support of PT Caltex Pacific Indonesia?s operation in Riau Province. (*)
