11 geothermal projects still on hold due to power price disagreement

The government has so far issued permits for the development of at least 11 geothermal fields for power generation but none of the projects have been started because state electricity company PT Perusahaan Listrik Negara (PLN) has not signed power purchase agreement (PPA) with any project developer.

?The 11 geothermal fields are still waiting for PPA to be signed by PLN for further development,? Sugiharto Harso Prayitno, the director for geothermal development at the energy and mineral resources ministry, said in Jakarta recently.

The 11 geothermal fields include Jailolo in Maluku, and Gunung Tampomas and Gunung Tangkuban Perahu, Cisolok Cusukarame, in West Java.

The signing of the PPA has been delayed because the long process of the negotiations between the developers and PLN. Each of the developers has proposed a different prices to PLN depending on the condition of their own fields.

PT Star Energy Geothermal for example has asked a price of Rp 1,727 per kWh for the electricity to be produced from the company?s Jailolo geothermal field. PT Jabar Rekind Geothermal meanwhile asked for Rp 630 per kWh for the power it will produce from Cisolok Cisukarame geothermal field, while PT Tangkuban Perahu asked for Rp 533.60 per kWh. (*)