Govt to provide subsidy for renewables

The government will allocate Rp 1.299 trillion in subsidy for power generated from renewable energy in the draft 2017 State Budget to be proposed to the House of Representatives, detik.com reported on Friday.

The subsidy is proposed because renewables-generated power is more expensive than those generated from fossil fuels.

?We have deliberated it with the Ministry of Finance. Total subsidy prepared for renewables is Rp 1.299 trillion for 2017,? Director General of New, Renewable Energy and Energy Conservation (EBTKE) Rida Mulyana said a press conference on Friday.

The subsidy will be used to cover the difference between the power generated from renewables and the basic provision cost of state owned electricity firm PT Perusahaan Listrik Negara (Persero) (PLN) in 2017.

The allocation of the subsidy is as follows:

1. Rp 520.24 billion for micro hydropower power plant (PLTMH) with a total capacity of 302.42 MW

2. Rp 205.78 billion for solar farms (PLTS) with a total capacity of 125 MW

3. Rp 302.35 billion for biomass power plant (PLT Biomassa) with a total capacity of 42.8 MW

4. Rp 38.34 billion for biogas power plant (PLT Biogas) with a total capacity of 6.2 MW

5. Rp 7.79 billion for city waste incinerators (PLTSa) with a total capacity of 1.6 MW

6. Rp 225 billion for ethanol-based biodiesel with a total volume of 50,000 kl. (*)