Government to offer 4 new geothermal working areas
Thursday, August 4 2011 - 03:17 AM WIB
The renewable energy and energy conservation directorate announced on Wednesday two working areas are in Simbolon Samosir in North Sumatra, and Tanggamus in Lampung, having potential capacity of 150 megawatts (MW) each, while the remaining two areas are in Central Java and Bora Pulu, Central Sulawesi, having a potential capacity of 120 MW and 152 MW, respectively.
The ministry said there were currently 50 geothermal working areas in the country as of today, 19 of which have been developed for power generations. Of the 19 areas, six have started production with a total capacity of 1,186 MW
?For the remaining 31 areas, mining licenses for 19 have just been issued, one is still in the tender process, tender processes for four areas failed and seven areas are still in the preparation phase for tendering,? the directorate said on its official website.
The statement says that the ministry faces several constraints in developing geothermal power, as many of the power purchase agreements (PPA) between geothermal producers and state electricity company PT PLN have not been signed. Because of this problem, geothermal concession holders face difficulty in securing loans, which also requires a government guarantee for the projects.
?The other problems are related to permission to use protected forests and certain tender winners offering prices that are too low,? it said. (*)