Govt to build up to 1,200 MW bioenergy-based power plants

The government plans to develop 1,000-1,200 MW of new power plants based on biomass and biogas resources over the next five years, which will require total investment of about US$3.7 billion, according to senior official.

Director General for Renewable Energy Dadan Kusdiana said Monday that for this year, the target is to develop an additional 100-200 MW of power generation from bioenergy resources.

Currently, the total capacity of power plants fueled by bioenergy resources reaches 1,716.5 MW. Meanwhile, the country?s total electrical capacity stands at 51,981 MW.

?All parties, including banks, remain reluctant to support bioenergy development. However, a recent regulation concerning feed-in tariffs for power produced from bioenergy resources will make this sector more attractive,? Dadan said, on the sidelines of a business forum on bioenergy held by German international cooperation agency GIZ and the German-Indonesian Chamber of Commerce and Industry (EKONID), which is aimed at promoting cooperation between the business sectors of the two countries to develop the bioenergy potential in Indonesia.

According to the regulation, electricity produced by a biomass power plant is priced at a minimum of Rp 1,150 per kilowatt hour (kWh). The price rises depending on the location of the biomass and its connection to electricity firm PLN?s transmission grid.

The government has previously said it would develop new power plants with total capacity of 35,000 MW over the next five years, a large part of which expected to be fueled by coal.

Editing by Reiner Simanjuntak