PLN to Build Tanah Baru Power Plant, Gets the Lowest Bid in History

TEMPO.CO, Jakarta - Total Eren and PT Adaro Power have won the tender for the development of the Tanah Laut Wind Power Plant (PLTB) in South Kalimantan with a capacity of 70 MW. The consortium won the tender after offering the lowest bid. 

The offer is said to be the lowest in the history of PLTB development in Indonesia, with the two company’s consortiums offering a bid as low as 5.5 cUSD/kWh. In contrast, the construction of PLTB in Sidrap, the lowest bid was 11 cUSD/kWh, while in Jeneponto the lowest bid was 10 cUSD/kWh. 

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

"Choosing the winner of the project developer is an important milestone before the next stage which is the signing of the Power Purchase Agreement (PPA) and Financial Close," PLN President Director Darmawan Prasodjo said. 

Prasodjo explained that this development is in line with Indonesia’s net zero emission target by 2060. Therefore, the potential for strong winds in the Tanah Laut area, South Kalimantan, will be harnessed by the development of PLTB. 

Prasodjo added that PLN carried out a number of initiatives to support the energy transition agenda set by the government. One of them is through the addition of clean power plants by utilizing the potential for new and renewable energy (NRE) 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 the electricity supply in the Kalimantan powerline by 2024. 

PLTB Tanah Laut is also 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. 

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

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

PT Adaro Power Director Mustiko Bawono said Adaro Power and its partner 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 institutions, contractor partners, and manufacturers, we hope that this strategic project can support the government and PLN to achieve the renewable energy mix target," Bawono said. 

Total Eren Australia & Indonesia Managing Director Kam Tung Ho thanks PLN for the opportunity to demonstrate their commitment to developing the Tanah Laut PLTB. 

In the Asia-Pacific region, Total Eren is France's leading renewable energy independent power producer (IPP) 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 plant projects. Ho feels excited to achieve this particular milestone with 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," Ho said.*)

INFO TEMPO

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