www.reuters.com
Apr 26, 2010
JERUSALEM, April 26 (Reuters) - A consortium building a 330MW geothermal plant in Indonesia has reached a deal with the state electricity company to sell power at a higher price than first agreed, a member of the group said on Monday. State-owned PT Perusahaan Listrik Negara (PLN) awarded a contract in 2006 to a consortium of Medco Energi Internasional, Ormat Technologies' unit Ormat International, Itochu Corp and Kyushu Electric Power to build the plant in Sarulla, North Sumatra. The $1 billion project has been held up in recent years after the consortium demanded a price revision.
Ormat Technologies said in a statement on Monday that the consortium had reached an agreement with PLN to change the price of the power sold to 6.79 U.S, cents per kW. The sides also agreed that the tariff would be reduced in future. They are expected to sign a financing deal within a year, after which the consortium will have 30 months to complete the first phase of the project with a capacity of 110 to 120MWs. The project's final two phases are expected to be completed within 18 months of the first phase. Ormat, which develops and operates geothermal power plants, will benefit from more than $300 million in equipment supplies for the project in which it has a 12.75 % stake.
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