Indonesia: Micro Hydro Power Plants Drastically Unattractive In 2017
Based on the records of the Ministry of Energy and Mineral Resources, the
current micro hydro power plants suggested by water power management
companies only managed to produce 16.37 MW.
It is a drastic 137 percent drop compared to last year's 38.92 MW capacity
suggested during the same period.
Three locations were chosen by management companies, which is in Kandibata
(North Sumatra) with a 9.7 MW capacity; in Wae Lega (East Nusa Tenggara)
generating 1.75 MW; and in Babatan (South Sumatra) generating 4.92 MW. The
total investment reached Rp454 billion.
The number of micro hydro projects this year has dropped significantly
because of a transitional period. Based on the latest regulation, anything
involving power plants is authorized by PLN. The ministry isn't authorized
anymore to name a company to manage hydro power plants.
The Ministry of Energy said that the realization of micro hydro power plants
and solar power plants during the first semester was only 12.45 MW, which is
only 10 percent from this year's 124 MW goal.
The ambitious goal, according to General Director of Renewable Energy and
Energy Conservation, Rida Mulyana, was set during a period when the feed-in
tariff policy elevated hydro and solar power plants' selling price.
The pricing policy from the Ministry of Energy can possibly risk holding
back micro hydro power plant investments up to 300 MW.
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Link to Original Article:
https://en.tempo.co/read/news/2017/07/12/056890754/Micro-Hydro-Power-Plants-
Drastically-Unattractive-In-2017
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John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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