Raya Group completes USD-788m geothermal PPA in Indonesia

Oct 9, 2014 - Australian firm Raya Group Ltd (ASX:RYG) said Wednesday it expects total revenues of USD 788.4 million (EUR 620.4m) for 30 years from the power purchase agreement (PPA) of a 30-MW Indonesian geothermal project.

The PPA, announced last week, became official after obtaining the approval of the Indonesian Minister of Energy and Mineral Resources. Under the agreement, Raya and its joint venture partner for the project will sell the plant’s output to Indonesian state-owned utility PT Perusahaan Listrik Negara (PLN), also known as Persero, for USD 0.125 per kWh.

Raya holds 45% in PT Sokoria Geothermal Indonesia (SGI), the firm that is developing the scheme, whereas local PT Bakrie Power Corp has a 53% stake in it. The first 5-MW unit of the geothermal plant, located on Flores Island, is expected to come online in December 2018, whereаs the whole facility is to reach commercial operations between 2023 and 2024.

Melbourne-based Raya, formerly Panax Geothermal Ltd, focuses on geothermal projects mainly in Australia, Indonesia and India.

(USD 1 = EUR 0.787)

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