Govt may set geothermal electricity price based on region

The government is planning to set geothermal electricity purchase price to be paid by state electricity company PT PLN to vary depending on the location or region of the geothermal resource, said Kardaya Warnika, Director General for New, Renewable Energy and Energy Conservation.

Kardaya said for areas or regions that have no other energy resources other than oil, the price of electricity produced from geothermal power plants may be set higher than in other regions that have oil and other energy resources.

Kardaya said the policy will be included in the revised Energy Ministerial Regulation (Permen ESDM No. 2/2011), which is being drafted by the ministry. He expects the revised regulation to be issued by the end of this year. (roffie/romel)