Businesses want geothermal ceiling price at $0.12 per kWh

Geothermal investors have demanded the government to revise upward the geothermal ceiling price to US$0.12 per kWh from the $0.09 per kWh to help attract new investment and accelerate the development of the sector, Bisnis Indonesia daily reported on Tuesday.

Head of the Indonesian Geothermal Association (API) Abdul Poernomo was quoted by the paper as saying that the current ceiling price is not attractive for investors given the huge risk and investment required in developing the geothermal resources.

?Until now, the government and businesses have yet to agree on the ceiling price,? he told Bisnis Indonesia, adding that if the government declines to apply the ceiling price at the recommended level it would hamper the development of the geothermal sector in the country, which has been moving at a snail?s pace so far.

The association targeted installed capacity of 6,500 MW by 2025, but so far only 1,341 MW has been realized. (*)