Indonesia: Feed-in tariff for geothermal energy to be finalized this month

Indonesia: Feed-in tariff for geothermal energy to be finalized this month

The government is set to introduce a feed-in tariff mechanism this month to
push down the huge costs and limit the risks of geothermal exploration, in
efforts to reach the country's target of generating 7,000 MW of electricity
from geothermal sources, a ministry official has said.

The new policy aimed to provide security for investors as geothermal
exploration accounted for 60 percent of the investment costs, Yunus
Saefulhak, the Energy and Mineral Resources Ministry's director of
geothermal energy, said Sunday.

"In future, the auction of geothermal work areas will not be based on price
anymore, but according to the work program and exploration commitment," he
said.

The feed-in tariff policy obliges energy suppliers to purchase electricity
produced from renewable energy at fixed costs. At present, the only
off-taker available is state-owned electricity company PLN.

"The draft regulation is already at the State Secretariat, waiting to be
signed by the President. Most probably, [the regulation will be issued] this
month," Rida Mulyana, the energy and mineral resources director general for
Renewable Energy and Energy Conservation said.

The government is seeking to maximize the use of geothermal energy, which
currently contributes to only 5 percent of electricity generation
nationwide. The country's geothermal energy potential is some 29,000
megawatts.

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Link to Original Article:
http://www.thejakartapost.com/news/2016/11/07/feed-in-tariff-for-geothermal-
energy-to-be-finalized-this-month.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com