Depending on the location, the tariff ranges from 10 cents to 18.5 cents per kilowatt hour (KwH), with the Energy and Mineral Resources Ministry planning to raise it further to 11.5 cents to 29 cents per KwH.
Indonesia FIT
In an attempt to attract investments in Indonesia’s geothermal power sector, the Ministry of Energy and Mineral Resources plans to offer higher prices for geothermal-based electricity. Based on a recommendation from the World Bank, the new proposed geothermal-produced electricity price will range between 11.5 and 29 cents per KwH and will be effective until 2025. Currently, state-owned Perusahaan Listrik Negara pays between 10 and 18.5 cents per KwH to independent geothermal power producers (feed-in tariff).
The Ministry of Energy and Mineral Resources is completing a revision on electricity sales-purchase from geothermal power plant pricing regulation. The ministerial regulation revision will be signed in a few weeks.
In an attempt to attract more private investors in the development of solar energy, the government will set a feed-in tariff for electricity produced by solar power plants. “The tariff will be as high as 25 cents per kilowatt hour,” Finance Minister Agus Martowardojo said after a meeting with several other ministers last Tuesday. . .
PT Pertamina Geothermal Energy (PGE) claimed the feed in tariff for geothermal is a big leap to develop geothermal industry in Indonesia. The new feed in tariff has stimulate Pertamina Geothermal to develop its projects in line with the government’s target in accelerating road map. . .
The Jakarta Post reports that Indonesia substantially raised its geothermal tariffs this week across the archipelago of 240 million people, beginning what the government bills as a “crash” program.
The ministry’s director general of renewable energy and energy conservation, Kardaya Warnika, said the new pricing, which is often called a feed-in tariff, would be applied to waste-fired power plants in cities. . .
The proposals before the Ministry will increase the tariff either to a flat rate of US$125 per megawatt hour (up from $US97/MWh), or to US$120/MWh for developments close to the national transmission grid and US$145/MWh for projects on smaller Indonesian islands or with limited access to infrastructure. . .
“Hopefully, Feed in Tariff regulation for geothermal will issue next week,” said Director General of New, Renewable Energy and Energy Conservation MEMR, Kardaya Warnika in Jakarta, Wednesday. . .
Developers of renewable energy want the government to implement and include the feed-in tariff system to be included in the Decree of the Minister of Energy Number 31 Year 2009 regarding Purchases of Electricity by PT PLN from Power Plants that Use Renewable Energy on the Small and Middle Scale or Power Surpluses.
