26 geothermal projects hampered by Forestry Law, low prices

Thursday, July 19 2012 - 01:11 AM WIB

At least 26 geothermal power plant projects have been stalled due to the Forestry Law and low feed-in-tariffs, according to a senior official at the Energy and Mineral Resources Minstry.

The secretary general of new energy and renewable energy at the ministry, Djajang Sukarno said in Jakarta on Wednesday that the 26 geothermal projects comprised of 8 projects which have not been in operation, four projects which have been in operation and 14 new projects which were developed after the issuance of the Law No. 27/2003 on Geothermal.

As reported by Kontan business daily, the regulatory problems hampered some of the geothermal projects because in the Law No. 27/2003 on Geothermal, geothermal exploration and production activities were referred to as mining activities while in the Forestry Law, mining activities could not be carried out in forest conservation areas.

?The problems occurred because many of geothermal projects are located in protected forests,? Djajang said. In order to solve the regulatory problem, the government planned to revise the geothermal law in order to remove the ?mining? wording in the Geothermal Law, he said. The draft of the law revision is now being finalized at the state secretary and will soon be submitted to the House of Representatives for approval. He hoped the revision could be completed this year.

In addition to the regulatory problem, some of the geothermal projects were also hampered by low feed-in-tariffs, or the selling prices of the geothermal power to state owned electricity company PLN.

The projects hampered

No PLTP Capacity (MW) Prices
1 Sarulla (North Sumatra) 330 US$ 6,79 sen/kwh
2 Kotamobagu 220 US$ 4,3 sen/kwh
3 Sungai Penuh (Jambi) 110 US$ 4,3 sen/kwh
4 Tulehu (Maluku) 20 -
5 Tangkuban Perahu 120 Rp 533,6/kwh
6 Cibuni (West Java) 10 -
7 Lahendong-Tompaso (North Sulawesi) 60 US$ 8,25 sen/kwh
8 Wayang Windu (Pangalengan) 227 US$ 6,3 sen/kwh
9 Dataran Tinggi Dieng (Central Java) 60 US$ 5,15 sen/kwh
10 Jaboi (NAD) 10 Rp 1.705/kwh
11 Cisolok Cisukarame (West Java) 40 Rp 630/kwh
12 Gunung Tampomas (West Java) 45 Rp 598/kwh
13 Gunung Ungaran (Central Java) 110 US$ 8,09 sen/kwh
14 Sokoria (East Nusa Tenggara) 30 Rp 1.250,69/kwh
15 Atadei (East Nusa Tenggara) 10 US$ 6,3 sen/kwh
16 Jailolo (North Maluku) 10 Rp 1.727,54/kwh
17 Suoh Sekincau (Lampung) 220 US$ 6,9 sen/kwh
18 Hu'u Daha (West Nusa Tenggara) 20 US$ 9,65 sen/kwh
19 Kaldera Danau (Banten) 110 US$ 8,39 sen/kwh
20 Blawan-Ijen (East Java) 110 US$ 8,58 sen/kwh
21 Telaga Ngebel ( East Java) 165 US$ 7,55 sen/kwh
22 Guci (Central Java) 55 US$ 9,09 sen/kwh
23 Sibayak (North Sumatera) 12 US$ 1,6 sen/kwh

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