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Jakarta Post

Govt raises prices for geothermal power plants to lure investors

  • Rabby Pramudatama

    The Jakarta Post

Jakarta   /   Wed, July 18 2012   /  09:44 am

The government has finally raised the feed-in-tariff for geothermal power plants to between 10 to 17 US cents per kilowatt-hour (kWh) from 9.7 cents per kWh to lure more investors enter the geothermal power business.

Energy and Mineral Resources Minister Jero Wacik said on Tuesday, the feed-in-tariff or the purchasing price of state electricity company PLN for geothermal power plants was increased in order to attract more investors to tap into the country’s rich geothermal resource.

 “If we set [the geothermal price] at only 9 cents it means the price is only one-fifth to the price of electricity from fuel-fired energy,” he told journalists after the opening of the Indonesia Renewable Energy and Energy Conservation Conference and Exhibition, which was held at the Jakarta Convention Center (JCC) on Tuesday.

For a comparison, the current price for fuel-fired...