PLN and Total Eren - Adaro Power - PJBI Sign the Power Purchase Agreement
PT Perusahaan Listrik Negara has signed a Power Purchase Agreement with Total Eren S.A., PT Adaro Power, and PT Pembangkitan Jawa Bali Investasi, which covers the construction of a 70 MW wind power plant equipped with a battery energy storage system of 10 MW / 10 MWh to be located in Tanah Laut, South Kalimantan.
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The signing was held by PLN’s President Director Darmawan Prasodjo, Managing Director Indonesia & CFO APAC at Total Eren Romain Pierru, Adaro Power’s President Director Dharma Djojonegoro, Adaro Power’s Director Mustiko Bawono, and PJBI’s President Director Amir Faisal, accompanied by COO & Head of Project Finance APAC at Total Eren Gregory Thomassin, Adaro Power’s Vice President Commissioner Kusmayanto Kadiman, and President Director of PLN Nusantara Power Ruly Firmansyah at PLN’s head office in Jakarta, on Thursday May 4th, 2023. The Tanah Laut wind power plant is expected to start supplying electricity in 2025 to support the Government’s renewable energy targets in Indonesia.
PLN’s President Director Darmawan Prasodjo said: “Going forward, this PPA for the Tanah Laut wind power plant is expected to serve as a reference for wind power plant projects in particular, and for new and renewable energy in general, not only in terms of the competitive price but also as being acceptable to Independent Power Producers (IPP), PLN and the banking sector. This wind power plant, with a capacity of 70 MW and a battery energy storage system (BESS) of 10 MWh, aims to strengthen the electricity supply in the Kalimantan interconnection system and add more renewable energy in the Indonesian mix.”
Adaro Power’s President Director Dharma Djojonegoro stated: “The PPA signing is a significant moment for Adaro as we look to build out the Adaro Green pillar. This is not only our first IPP wind project, but also the manifestation of our serious endeavor to continuously develop various reliable and affordable renewable energy sources. This is in line with the Government’s aspiration to ensure that the energy transition in Indonesia will produce affordable energy for all Indonesian people. We are delighted to have engaged into our partnership with Total Eren.”
Managing Director Indonesia & CFO APAC at Total Eren Romain Pierru added: "We are delighted to partner with PLN for the supply of electricity with the Tanah Laut Wind Farm, which demonstrates Total Eren’s strong commitment to the renewable energy market in Indonesia and strong ambitions in the country. Total Eren had initiated the development of this project and then been successfully awarded in a competitive tender together with our strategic partner Adaro Power. With the signing of this PPA, we are reaching a new milestone with our Partners. I am looking forward to the commencement of the construction of the Tanah Laut Wind Farm which will provide low-carbon electricity for the benefit of people in Indonesia.”
The Tanah Laut wind power plant’s construction phase is targeted to commence at the beginning of 2024 and projected to achieve commissioning in 2025. It is expected to strengthen the electricity supply in Kalimantan Interconnection System and add to the new and renewable energy mix in Indonesia. The
70 MW Tanah Laut wind farm will use the latest wind turbine technology with a capacity of above 6 MW/unit and equipped witha battery energy storage system (BESS) of 10 MW / 10MWh which will mitigate the wind farm’s intermittency.
The Tanah Laut wind project’s development has gone through a competitive process, out of which PLN appointed the Consortium of Total Eren and Adaro Power as the tender winner and signed the Letter of Intent (LoI) on November 15th, 2022 within the G20 event in Bali. To expand the company’s portfolio, in particular in the renewable energy sector, PLN has assigned PJBI through PT PLN Nusantara Power (PNP) as PLN’s subsidiary in the power generation segment to get involved in the development of the 70 MW Tanah Laut wind farm. The PPA signing today shows that Indonesia is a promising investment destination for renewable energy projects for overseas investors. In addition, the development of Tanah Laut wind power plant is also expected to be a reference for the future development of wind power plants and new and renewable energy projects for all parties, including the banking sector, sponsors, and PLN.
PLN, along with Total Eren, Adaro Power and PJBI, reaffirm that partnerships with various local and international partners are highly necessary to realize Indonesia’s commitment to achieve the expected energy mix target through the acceleration of clean energy transition. Therefore, the realization of the Tanah Laut wind power plant is expected to support the achievement of the new and renewable energy mix target, and contribute to reduce CO2 emission by 220,000 tons per year as well as achieving the national CO2 emission reduction target of 34.8 percent.
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