PT Bukit Asam (BA) through its subsidiary PT Huadian Bukit Asam Power (HBAP) together with PT PLN have signed an amendment of Power Purchase Agreement (PPA) for Sumsel 8 Mine Mouth Power Plant with a capacity of 2 x 620 MW.
The PPA signing was conducted in Jakarta on October 19 by PT BA's president director Arviyan Arifin, PT PLN president director Sofyan Basir, represented by procurement director Supangkat Iwan, and China Huadian Hong Kong Company Ltd chairman Fang Zheng.
Sumsel 8 Mine Mouth Power Plant is part of a 35,000 MW megaproject, with PT HBAP as Independent Power Producer (IPP), a consortium of PT Bukit Asam and China Huadian Hong Kong.
The PPA amendment includes several changes from the original plan. Power from the Sumsel 8 plant, which was originally to be allocated to Java through High Voltage Direct Current (HVDC), will now be transmitted to the Sumatra grid through extra high voltage 500 kV transmission.
There was a change of plan since power for the Java grid was deemed sufficient and additional supply was required for Sumatra.
Among the amendments, HBAP will construct a transmission line from Sumsel 8 Mine Mouth Power Plant to PLN Muara Enim substation 45km away. The additional transmission line adds to the total investment value to almost US$1.7 billion.
In addition to the allocation change, the technology for the plant will also change from the planned sub critical technology to super critical technology, which is more efficient and environmental friendly.
Following the signing, construction for Sumsel 8 Mine Mouth Power Plant is expected to start by mid-2018. The construction period will be 42 months for unit I and 45 months for unit II. The Commercial Operation Date (COD) is expected in 2021 for unit I and in 2022 for unit II.