JAKARTA. PT Kencana Energi Lestari Tbk (KEEN) has signed a Power Sale and Purchase Agreement (PSPA) with PT Perusahaan Listrik Negara (Persero), or PLN, in relation to their plan to build and manage the operation of PLTM Salu Noling.

“By signing the PSPA, PLN has given the Company its endorsement to build and operate the Salu Noling Mini Hydro Power Plant (PLTM Salu Noling) with a capacity of 10 MW,” revealed Diana Limardi, Corporate Secretary of KEEN, through the official release.

According to the information disclosure in Indonesia Stock Exchange (IDX) today (27/12), this contract with PLN is worth IDR 1.2 trillion, and will last for 25 years.

“The company will sell the electricity produced to PLN for a period of 25 years after PLTM Salu Noling’s commercial operation date,” added Limardi.

PLTM Salu Noling is located in South Sulawesi. This contract is said to enrich the business portfolio of KEEN, whilst maintaining its continuity in the industry, thanks to an extensive contract period.

This contract obtainment is also projected to improve financial position of KEEN through its construction revenue. “The company will soon start construction of the PLTM Salu Noling,” Limardi stated.

After the construction is completed, PLTM Salu Noling is said to also increase the installed capacity and power production of KEEN. (ZH)