PLN Will Buy Excess Power From Coal-Fired Plants at 90% of Production Costs: Ministry

The government guarantees that state-owned utility company Perusahaan Listrik Negara, or PLN, will purchase excess electricity produced by coal-fired power plants at a maximum price, equivalent to 90 percent of the cost to supply electricity, director general at the Ministry of Energy and Mineral Resources said on Friday (03/03). (Antara Photo/Muhammad Adimaja)

By : Retno Ayuningtyas | on 4:21 PM March 04, 2017
Category : Business, Economy

Jakarta. The government guarantees that state-owned utility company Perusahaan Listrik Negara, or PLN, will purchase excess electricity produced by coal-fired power plants at a maximum price, equivalent to 90 percent of the cost to supply electricity, director general at the Ministry of Energy and Mineral Resources said on Friday (03/03).

Director general of electricity at the ministry, Jarman, said the scheme is expected to ease the burden of independent power producers in dealing with their costs, and offers a better business option for PLN's power suppliers.

PLN is the biggest electricity distributor in the country.

The new scheme is regulated by the Ministry of Energy and Mineral Resources Regulation No. 19 of 2017, which has just been released.

The regulation permits power plant owners, including industrial estates that have their own power plants, to sell their excess energy to PLN for one year. The period can be extended after an evaluation by the government.

Previously, each purchase needed to approved by the ministry.

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