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Jakarta Post

More regulations planned to boost geothermal use

  • Rangga D. Fadillah

    The Jakarta Post

Jakarta   /   Tue, November 8 2011   /  08:00 am

The government is preparing a new regulation to set the price of electricity produced at geothermal power plants with the hopes of luring more investment into the sector, a senior official reveals.

The regulation would also promote the development of geothermal technology in areas that had no other available energy resources and where using oil-based fuels was expensive, said Sugiharto Harsoprayitno, the Energy and Mineral Resources Ministry geothermal director at the Directorate General for New, Renewable Energy and Energy Conservation.

The regulation will supplement an existing ministerial regulation that requires state power company PT PLN to purchase electricity produced from geothermal plants at a ceiling price of 9.7 US cents per kilowatt-hour (kWh), applied only to the second phase of the 10,000 megawatt (MW) fast-track program.

“Our planned regulation tar...