Govt promises incentives for medium capacity hydro power plants

In a bid to lure new investment in power sector development particularly in North Sumatra, Director General of New and Renewable Energy Rida Mulyana told a business gathering in the provincial capital of Medan last week that the government would provide incentives for investors developing hydro power plants with capacity of up to 10MW.

Rida pointed out as an example that the Ministry of Energy and Mineral Resources has recently issued two new regulations to ease the process of selling electricity from the hydropower plants to state-owned electricity firm PT PLN.

He added that as part of incentives, the government promises ?attractive price? for electricity produced by hydro power plants with maximum capacity of 10 MW.

?There will be facilities for investors in developing power plants, but there will also be sanction for those failing (to realize their commitment). Those which are committed will gain, but those which are only playing around will get sanction,? Rida said in a press statement obtained Tuesday.

He added that North Sumatra needs more power plant development as the province is struggling with electricity deficit which currently stands at 350 MW.

Editing by Reiner Simanjuntak