Recently, Energy and Mineral Resources Minister Jero Wacik announced a raise in the feed-in-tariff for electricity generated from geothermal energy to 10-17 US cents per kilowatt-hour (kWh) from 9.7 cents per kWh.
The tariff is expected to be a fixed price as opposed to a ceiling price and is based on the location of the plant and fuel mix of the grid that it serves.
Indonesia, which is among those countries with the biggest geothermal energy potential, has been struggling to boost electricity production from this renewable resource.
For decades, Indonesia has only managed to tap into 3 percent of its total reserve of about 28 GigaWatts (GW), while the use of fossil fuels such as coal and diesel for electricity generation grows unchecked in order to meet the country’s steeply rising energy demand.
What has hindered large-scale geothermal energy developme...