Govt increases geothermal electricity tariff
Wednesday, April 16 2014 - 02:06 AM WIB
The government has decided to increase the price of electricity produced by geothermal power plants to 11.5-29 US cents per Kwh from the current 10-18.5 cents in a bid to lure new investment into the sector, reports said on Wednesday.
Director General of New and Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, Rida Mulyana said that the draft of the ministerial regulation on the price increase has been completed and is waiting for the approval of the minister. ?It will probably be completed this month,? Rida said, adding that the new price will be valid for 2014 - 2025.
He added that the government will also introduce a new pricing mechanism: replacing the current feed in tariff mechanism with ceiling price system as recommended by the World Bank and Asian Development Bank. Under the new system, the price of geothermal electricity will be linked with the price of crude oil and coal.(*)