State-owned power company Perusahaan Listrik Negara (PLN) will build a three-megawatt biomass power plant for a sago factory in West Papua, according to an agreement signed on Friday.
“The investment for a biomass power plant is seven times more than for a diesel power plant, but with cheaper operational costs,” said Nur Pamudji, president director of PLN. “The investment is $4 million or Rp 40 billion per megawatt, to be paid in monthly installments by Perhutani.”
The factory, which is yet to be constructed, will be run by state-owned forestry company Perhutani. Three megawatts is on the low end of the power plant output spectrum: many PLN plants in Indonesia produce hundreds or even thousands of megawatts.