THE GROUNDBREAKING OF 35.000 MW POWER PROJECTS

Electricity4

After numerous attempts of waiting, today, President Joko Widodo (Jokowi) has finally established the 35,000 MW power projects held by a ceremonial groundbreaking at Samas Beach, Bantul, Yogyakarta. The state-owned electricity enterprise, PT PLN (Persero) (PLN), assisted by its legal consultant Nah’r Murdono Law Office, has prepared and negotiated a number of agreements with private sectors in relation to these mega-power projects.

For instance, among others is Samas Wind Power Plant Project whereby UPC Renewables Indonesia Limited for the project of 50 MW Samas Wind Power Plant has been appointed as the developer. The signing of the 30 years power purchase agreement between PLN and PT UPC Yogyakarta Bayu Energi as the project company was included as one of today’s agenda. This Project is intended to achieve the target of clean energy use in Indonesia of which the electricity generated from the Samas Wind Power Plant will be sold to PLN and subsequently distributed to the public. Once the project is successfully running well, it may be followed by other wind projects in fulfilling the clean energy demand in Indonesia. The project is located at Samas Beach where the wind is consistentand has a daily pattern of strong offshore wind from the Indian Ocean. It is estimated to reach its financing date by mid-2016 and begin its commercial operations in 2018.

Aside from the Samas Wind Power Project, Nah’r Murdono Law Office also assisted PLN in the preparation and negotiation of the gas sale and purchase agreement for the gas supply to the existing power generation facilities located in Central Sumatera, South Sumatera, Southern Sumatra, Batam and Western Java. Under the agreement, ConocoPhillips (Grissik) Ltd has agreed to deliver 40 BBTUD (Billion British Thermal Unit per Day) from the Corridor Block, Grissik (South Sumatera) until the end of contract period in 2017, which may be extended subject to the availability of gas in the Corridor Block. The gas will be transported through transmission pipeline of PGN and TGI as PGN’s subsidiary. This agenda is also in line with the Government’s plan in converting the nation’s energy consumption patterns from oil fuel to gas fuel.