More incentives expected for renewable energy development
Wednesday, July 18 2012 - 03:18 AM WIB
Energy and Mineral Resources Jero Wacik said that the government would continue to provide more incentives to help realize its target of increasing the use of renewable energy from the current 5 percent to about 26 percent in 2025 and about 35 percent in 2050.
?The government will keep driving up investments by providing more incentives. We?ll increase the price of electricity generated with new and renewable energy,? the minister said when addressing a conference on renewable energy and energy conservation held by the Indonesian Society of New and Renewable Energy (METI) in Jakarta on Tuesday.
He said that the price of electricity generated from wastes or biomass would be set at between 12 and 14 US cents per KWH. The electricity generated with solar-based power plants will be purchased based on the scheme similar with that already applied in Thailand.
Based on such scheme, the electricity will be purchased at the price of 23 US cents per KWH during the first one year. ?After that the price will gradually decrease until reaching between 3 and 5 US cents per KWH when its depreciation reaching zero,? he said.
He also said that for geothermal development, the government would apply a new scheme of feed-in tariff, which is higher than the previous prices of geothermal electricity, and would exempt all geothermal explorations from taxes.
?Next week I will sign a ministerial regulation on this. And the government will continue to promote the use of renewable energy. We?ll encourage the general public to use more of the renewable energy. That way we will also press down the energy subsidy,? he added.
The ministry?s Energy Conservation, New and Renewable Energy Director General Kardaya Warnika, who also made a presentation during the conference on Tuesday, said that based on the new regulation, the price of geothermal electricity in Sumatra will be set at 10 US cents per KWH, in Java between 11 and 11.5 US cents per KWH, in Bali between 12 and 12.5 US cents, in East Nusa Tenggara 15 US cents, and in Papua 17 US cents per KWH.
Kardaya also noted that the government would set up a new state company (BUMN) specializing on developing and managing the renewable energy.
Editing by Benget Besalicto Tnb.