Govt may miss target to build 4,000 MW geothermal power plants

Tuesday, June 21 2011 - 02:30 AM WIB

The government?s target to build 4,000 MW geothermal power plants by 2014 could be delayed as state-owned electricity company PT Perusahaan Listrik Negara (PLN) has yet to reach agreement with the geothermal developers.

PLN Technology and Planning Director, Nasri Sebayang said the geothermal developers have set a number of conditions that must be met first before they start construction of the project.

?The obstacle (for) geothermal (power plants development) is because the developers have requested various conditions. There are at least 30 items demanded by the developers,? Nasri said.

Among of the conditions requires is the availability of government guarantee since the start of exploration work, a condition not included in the existing government guarantee facility as stipulated under Ministry of Finance Regulation No 77/PMK.01/2011, under which the government provides guarantee for developers during construction phase only. (*)

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