Sarawak Cable Bhd (SCB) is getting a better deal with the revised electricity tariff for its first hydro power plant in north Sumatra due for completion in September 2015.
SCB’s 78%-owned Indonesia unit, PT Inpola Mitra Elektrindo (IME), is developing the RM80mil plant project with generation capacity of 10MW.
According to SCB managing director and chief executive officer Aaron Toh Chee Ching, Perusahaan Listrik Negara Persero (PLN), the Indonesian utility body, had revised upwards the tariff to an average of 998 rupiah (28.5 sen) per kWh from the original average 778 rupiah per kWh under a power purchase agreement (PPA) or an increase of some 28%.
“The rate is very good compared with Malaysia where IPPs (independent power producers) get below 20 sen per kWh in selling power to Tenaga Nasional Bhd (TNB). Under the PPA, IME will sell the electricity to PLN for 20 years and the concession is renewable.