KUALA LUMPUR : YTL Power International Bhd’s 80 per cent subsidiary, PT Tanjung Jati Power Co Ltd, has entered into a power purchase agreement (PPA) with Indonesia’s state-owned PT PLN (Persero) to supply power from its plant in West Java.
The US$2.7 billion (RM11.6 billion) Tanjung Jati “A” coal-fired power plant — located at Cirebon, West Java — will be the second investment for YTL Power in the country.
In 2004, it purchased a stake in the 1,220MW Jawa Power project which it has since successfully operated and maintained through its wholly-owned subsidiary P.T. YTL Jawa Timur. YTL Jawa Power Holdings BV, a 57.14 per cent subsidiary of YTL Power, owns 35 per cent of Jawa Power.
In a statement, YTL Power said the PPA signed yesterday was to restate and amend the PPA originally entered into on April 2 1997 for the construction of a 2x660MW coal-fired power generating facility and the sale of energy and capacity from the facility to PLN.
“The PPA will be for a term of 30 years, expiring in 2051, on the 30th anniversary of the anticipated commercial operation date of the plant,” it said.
It added the project is expected to contribute positively to the earnings of the YTL Power group.
Managing director Tan Sri Francis Yeoh said the project will utilise the state-of-the-art coal fired technology and will be among the most efficient of the new generation plants in the Indonesia system.
The project also forms part of the ambitious 35,000MW programme under Indonesia’s 9 Priority Agenda items.
“YTL Power is pleased to be able to assist in realising President Joko Widodo’s (Jokowi) bold vision of putting 35,000MW on the grid in the next five years. We have been able to leverage on the experience we have in running the Jawa Power plant over the past 11 years to develop the project,” he said.
In May this year, Jokowi launched Indonesia’s 35,000MW power plant construction programme that aims to cater to the country’s need for power in the next five years.
The programme is aimed at realising economic independence by stimulating strategic sectors, particularly in energy sovereignty.