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2 November 2006 -- Indonesia state electricity firm PT Perusahaan Listrik Negara (PLN) signed a preliminary deal with U.S. energy firm AES Corp., Japanese trading firm Sojitz and local firm PT Triaryani to build a 1,200 MW coal-fired power plant, the Reuters news agency reported. The cost of the project, to be located in South Sumatra, in the west of the archipelago, is estimated at about $1.5 billion. Sources did not say when the plant was due to begin production.
Indonesia reportedly is struggling to cope with electricity shortages and has said it will speed up construction of power plants to add 10,000 MW of capacity between 2006 and 2010. Indonesian officials have said domestic electricity demand is growing around 10 percent a year.
PLN operates 24,000 MW of generation capacity currently, but most of its plants are ageing, so daily output is far below capacity.
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