Govt sets 13 priority regions for investment in renewables sector
Tuesday, February 21 2017 - 03:24 AM WIB
The Ministry of Energy and Mineral Resources has decided 13 regions to be priority for the development of renewables-based power plants in the country.
Director of Geothermal at the ministry Yunus Saefulhak said on Monday that the 13 priority regions, all of which are located outside Java Island, have renewables potential to produce a combined 210 GW of energy, and that the potentials are economically viable to be developed.
Yunus said that investors interested in developing the country?s renewables sector in the country should direct their investment plans into these regions where so-called electricity production cost base (or BPP) is higher than the national BPP of state-owned electricity firm PT PLN. According to a new ministerial regulation, the tariff of electricity from renewables-based power plant is set at 85 percent of the regional BPP.
The 13 priority regions include Aceh, North Sumatra, Riau, Bangka Belitung, West Kalimantan, South and Central Kalimantan, East Kalimantan, South, Southeast and West Sulawesi, East Nusa Tenggara, Maluku, Papua, and North Sulawesi, Central Sulawesi and Gorontalo region.
Editing by Reiner Simanjuntak