JAKARTA (RambuEnergy.com) – PT Krinci Merangin Hidro, a hydropower plant developer, has signed power purchase agreement (PPA) with the Indonesian state electricity company PT Perusahaan Listrik Negara (PLN), which will allow Kerinci to sell its electricity to the state utility company for the agreed period.
Kerinci Merangin will develop hydropower plant PLTA Merangin Jambi with a capacity of 4×87.5 MW (350 MW).
The PPA was signed by PLN President Director Sofyan Basir and Kerinci Merangin CEO Achmad Kalla. The PPA deal, signed on Nov 15 was witnessed by Deputy Minister for Energy and Mineral Resources Arcandra Tahar.
Tahar said the government welcomed the deal as it is in line with the government’s drive to accelerate the development of renewable energy in the country, which ultimately reduces dependency on coal.
The power purchase deal will pave the way for Kerinci Merangin to speed up the development of the hydropower plant.
PT Kerinci Merangin Hidro is owned by PT Bukaka Teknik Utama Tbk (IDX:BUKK), through its unit PT Buka Mega Investama. (*)