JAKARTA (RambuEnergy.com) – State owned electricity company PT PLN has signed power purchase agreement (PPA) with PT Merauke Narada Energi, a subsidiary of PT Medco Energi Internasional Tbk (IDX:MEDC) to buy electricity from biomass power plant (PLTBm), to be developed by the company.
Merauke Narada Energi plans to develop a biomass power plant with installed capacity of 3.5 MW, located in Papua.
The PPA was signed in Sorong, West papua on Tuesday (Jan. 31).
Narada Energi expects to begin supplying electricity from 2017 to Salor, Merauke, that will be developed into a special economic zone (SEZ).
Indonesia has huge potential for biomass, however, unattractive tariff scheme has discouraged companies to invest in biomass. (*)