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PLN says gas power plant PLTGU Jawa 3 to be developed by its subsidiary, partner

JAKARTA ( – State electricity company PT Perusahaan Listrik Negara (PLN) said gas power plant PLTGU Jawa-3 with capacity of 880 MW, located in Gresik, East Java province will be developed by one of its subsidiary, a company official said.

Director for Procurement of PLN Supangkat Iwan Santosa said PLN will still conduct a tender, however, the tender will be aimed to seek a partner for the PLN subsidiary.

Initially, PLN wanted to offer the project to independent power producer, however, PLN changed its mind. The reason is that the power plant is a peaker power plant, so that PLN still has control over the power plant.

At present, PLN uses coal-fired power plant as peaker power plants as the price of coal, instead of gas power plants as the price of gas is 2.5 times the price of coal. “If it (PLTGU) function as base load, it could cause electricity price to be more expensive,” Iwan said.

PLN, he said, is yet to decide which subsidiary that will be responsible to develop the power plant. It could be PT Pembangkitan Jawa Bali (PJB) or other subsidiaries.

PLN is expected to conduct a tender to develop the power plant in mid year, followed by construction of 1.4-2 years and commercial operation in 2019.

PLTGU Jawa 3 is part of the power plants to be developed by the country to support the Joko Widodo government’s drive to develop 35 GW of power plants within five years.

In addition to PLTGU Jawa 3, PLN is planning to open tender for PLTGU Peaker Jawa-Bali 3 with capacity of 500 MW and PLTGU Peaker Jawa-Bali 4 with installed capacity of 500 MW this year.

A number of companies, including PT Adaro Energy Tbk (IDX:ADRO) has expressed its interest to take part in the PLTGU Jawa 3 power plant tender. (*)

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