PLN Get The PLTB Development Auction With The Lowest Tariff In History

PLN President Director Darmawan Prasodjo. (Photo: Doc. PLN)

PT PLN (Persero) has chosen a consortium that will build the Tanah Laut Bayu Power Plant (PLTB), South Kalimantan, with a capacity of 70 MW. The consortium that won the tender consisted of Total Eren and PT Adaro Power because it provided the lowest bid.

The offer is the lowest in the history of PLTB development in Indonesia. In the construction of PLTB in Sidrap, the lowest bid was 11 cUSD/kWh, then in Jeneponto it fell again by 10 cUSD/kWh, while the two company's consortium offering was 5.5 cUSD/kWh.

This collaboration was marked by the signing of a Letter of Intent (LoI) by PLN President Director Darmawan Prasodjo, Managing Director of Australia & Indonesia Total Eren, Kam Tung Ho and Director of PT Adaro Power, Mustiko Bawono and witnessed by the President Director of PT Adaro Energy Indonesia Tbk (Adaro) Garibaldi Thohir in Bali, on Tuesday, November 15.

"Determination of the winner as a project developer is one of the important milestones to go to the next stage, namely the signing of the Electricity Purchase Agreement (PJBL) and Financial Close," explained PLN President Director Darmawan Prasodjo.

Darmawan said that according to government directives, PLN will continue to encourage the net zero emission target by 2060. Therefore, the potential for strong winds in the Tanah Laut area, South Kalimantan, will be maximized by the development of PLTB.

He added that PLN carried out a number of initiatives to support the energy transition agenda launched by the government. One of them is through the addition of green plants by utilizing the potential for new and renewable energy (EBT) in the regions.

The PLTB with a capacity of 70 MW equipped with a battery energy storage system (BESS) of 10 MWh is targeted to strengthen electricity supply in the Kalimantan interconnection system by 2024.

The presence of the Tanah Laut PLTB is expected to play a role in reducing CO2 emissions by 220,000 tons per year and contribute to achieving the national CO2 emission reduction target of 34.8 percent.

President Director of PT Adaro Energy Indonesia Tbk (Adaro) Garibaldi Thohir said Adaro continues to make efforts to transform and grow into a more environmentally friendly company.

"This project shows our commitment in building a greener Adaro through the Adaro Green pillar, which focuses on developing various new renewable energy sources. In addition, this project will also further increase Adaro's contribution to Indonesia's greener future," he said.

Director of PT Adaro Power Mustiko Bawono said, Adaro Power and partners, Total Eren, feel grateful that they have won the Tanah Laut PLTB project with a capacity of 70 MW.

"With the support and hard work of financial agencies and contractor partners and manufacturers, we hope that this strategic project can support the Government and PLN to achieve the target of the new renewable energy mix in Indonesia," he explained.

Managing Director of Total Eren Australia & Indonesia, Kam Tung Ho said we would like to thank PLN for the opportunity to demonstrate our commitment in developing the Tanah Laut PLTB. In the Asia-Pacific region, Total Eren is France's leading leading renewable energy private power producer with more than 3.7 GW of renewable energy assets that have been operating or are under construction globally. In the Asia-Pacific region, Total Eren has more than 1.1 GW of wind and solar power generation projects and we are excited to achieve this particular milestone with our partners Adaro Power and PLN.

"We are really looking forward to the start of the Tanah Laut PLTB development. In total, Eren has initiated the development of this project for the last 7 years with a competitive tender process," he said.