JAKARTA (RambuEnegy.com) – State electricity company PT Perusahaan Listrik Negara (PLN) has signed a memorandum of understanding to purchase electricity from biomass power plant (PLTBm) to be developed by state plantation company PT Perkebunan Nusantara XIII, which will be located in West Kalimantan.
The MoU was signed by General Manager PLN for West Kalimantan Bima Putrajaya and President Director of PTPN XIII M Abdul Ghoni, on Thursday. The PPA would last for 20 years.
General Manager of PLN West Kalimantan Bima Putrajaya said the MoU indicates commitment of PLN to encourage the development of renewable energy in Indonesia and helps improve electricity coverage rate to 98% in 2019. The move is also aimed at achieving the share of renewable in the country’s energy mixed to 25% by 2025 from below 10% at present.
The PLTBm, which will have installed capacity of 9000 kW, will be built in two locations, namely Balai Karangan and Balai Berkuak.
The plantation firm is the latest company that will develop biomass power plant. Observers have said Indonesia can tap biomass to develop power plants, as Indonesia has abundant resources, by utilizing wood pellets. (*)