Ann: Gulf Signs Power Purchase Agreement, page-52

AS I said earlier "any body who runs smelters using engine driven power is an idiot."
I will give links so that the moderators don't say that its unsubstantiated.
If it cost US$0.26/KWh in 2009 using diesel, how much do you think it will cost in the future now that oil hit US$71/ barrel
" In 2009, electricity produced by imported diesel fuel cost $0.26/kWh."

https://asian-power.com/power-utili...-turn-diesel-gas-power-production-short-lived
Why Indonesia's decision to turn to diesel gas for power production is "short-lived"
It is also expensive and risky, analyst says.
The announcement last week of new diesel gas contracts and more diesel-powered generators for power production in hundreds of locations across Indonesia is short-sighted, expensive and risky, according to the Institute of Energy Economics and Financial Analysis (IEEFA).
"While national government officials have stated support for renewable energy policies that would expand remote and rural electrification, including a plan to install solar photovoltaics in 2,500 villages in 2019 and 2020, the Indonesia electric monopoly PLN continues to plan for the procurement of diesel generators for up to 400 locations in Indonesia, all of which would be fueled by imported diesel fuel, according to Sara Jane Ahmed, an IEEFA energy finance analyst.
Renewable energy makes better economic sense for Indonesia’s many small islands and isolated locales. It allows for local energy security and saves money by reducing dependence on imported diesel.
Here's more from IEEFA:
diesel generation by comparison risks burdening Indonesia with years of high-cost electricity delivered by outdated technology.
Indonesia has an opportunity today to move forward, instead of backwards.
In 2009, electricity produced by imported diesel fuel cost $0.26/kWh.


The price of oil has just increased to US$71/barrel, so it won't be long before PLN is broke.

Now the Indonesian Gov't has capped the price of coal to hold down the electricity prices. What happens in 2019 when the electricity price rises after the election? The only direction electricity/power prices will go is UP


http://www.conventuslaw.com/report/indonesia-government-caps-prices-of-coal-for-power/

Indonesia Government Caps Prices Of Coal For Power Generation.

Legal News & Analysis - Asia Pacific - Indonesia - Energy & Project Finance

20 March, 2018

A. Introduction

With state power utility Perusahaan Listrik Negara (“PLN”) coming under increasing financial pressure as energy prices soar and the political temperature heating up ahead of local elections this year and a presidential election next year, the Government has opted to impose caps on the prices payable for coal to be used for power generation in the public interest. This new policy is incorporated in three newly issued regulations, namely, Government Regulation No.  8 of 2018 (GR 8/2018), Minister of Energy & Mineral Resources Regulation No. 19 of 2018, and Minister of Energy & Mineral Resources Decree No. 1395 K/30/MEN/2018 (“Decree No. 1395”).

Government Regulation No. 8 of 2018 and Minister of Energy & Mineral Resources Regulation No. 19 of 2018 provide the overarching legal basis for the setting of maximum prices for coal to be used for power generation in the public interest, while Decree No. 1395 sets out the technical details of the new pricing policy. Decree No. 1395, which was promulgated on 9 March 2018, is of retroactive effect to 1 January 2018.