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Govt prepares feed-in tariff mechanism to boost geothermal energy
The government is preparing a feed-in tariff mechanism to assist geothermal developers in a bid to boost the development of the geothermal energy sector in the country, a minister has said.
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Renewable energy – An employee checks a production drilling facility at the Kamojang geothermal power plant in Kamojang, Garut, West Java. (Tempo/Dasril Roszandi)
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he government is preparing a feed-in tariff mechanism to assist geothermal developers in a bid to boost the development of the geothermal energy sector in the country, a minister has said.
The Energy and Mineral Resources Ministry's geothermal director Yunus Saefulhak said the feed-in tariff mechanism was better economically in facilitating geothermal developers as this new tariff regime adopted a fixed-price system. In a fixed-price system, energy suppliers do not have to negotiate with state-owned electricity firm PLN as the power-off taker.
He further said the feed-in tariff mechanism aimed to assist power plants with capacities ranging between 5 to 220 Megawatts (MW) and accommodate tariff variables.
Yunus said the ministry, along with a consortium of researchers consisting of Arup, Japan International Cooperation Agency (JICA) and geothermal engineers, was currently studying the feed-in tariff scheme.
"Arup has submitted a final report and we are now evaluating it," Yunus said on the sidelines of the 4th Indonesia International Geothermal Convention and Exhibition at the Jakarta Convention Center on Thursday.
He further said the government had made some innovative breakthroughs in the geothermal sector by harmonizing regulations and removing geothermal from the list of mining activities. The government has also improved the structure of geothermal transactions, he went on to say.
"We have simplified geothermal business permit request procedures by establishing a one-stop service and giving fiscal incentives for geothermal development such as a tax allowance and import duty facility," he said. (ebf)
