Govt to develop 6,867 MW geothermal projects until 2018
Wednesday, July 9 2008 - 02:29 AM WIB
Sugiharto Harsoprayitno, the Director of Geothermal and Underground Water at the Ministry of Energy and Mineral Resources, said in Jakarta on Tuesday that the government was targeting to generate power supply of about 30 MW from geothermal power plants in 2009, 162.5 MW in 2010, 335 MW in 2011 as part of the program.
He said that in 2012, the additional power supply from geothermal power plants was expected to reach 865 MW in 2012, 715 MW in 2013, 1,685 MW in 2014, 1,650 MW in 2015, 660 MW in 2016, 435 MW in 2017 and 330 MW in 2018.
The investment of $19.8 billion is including $18.7 billion for the construction of the new geothermal power plants, the government would also need about $791 million for the operation and maintenance costs of the new plants, and another $250 million for the maintenance and operation of the existing geothermal power plants.
Sugiharto said investors are expected to be interested in the projects because the government had issued a Ministry of Energy and Mineral Resources Decree No. 14/2008 that sets a higher price for geothermal power than those of power generated by other types of power plants.
Furthermore, the government would provide tax incentives under the Ministry of Finance Decrees No. 177 and No. 178.
Meanwhile, Pertamina Geothermal Energy, the subsidiary of state owned oil and gas company PT Pertamina, said it was ready to build 4,000 MW geothermal power plants.
"We are ready to build 4,000 MW power plants in our 15 goethermal working areas,? Surya Dharma, the company's Operation Director, said. (bernard)