New geothermal regulation to apply soon
Monday, May 14 2007 - 01:56 AM WIB
The government is preparing a government regulation allowing for the more optimal utilization of geothermal by prohibiting geothermal power plants from selling their electricity above 5 U.S. cents per kilowatt hour (kWh), Kontan Daily reported.
Director General of Electricity at the Ministry of Energy and Mineral Resources J Purwono said that the regulation is designed to furnish the Geothermal Law of 2003. “Now, it is on the finalization stage and must be completed this year,” he said in Jakarta last week.
Under the new legislation, provisions on appointment scheme and price would be better. The selling price of electricity, for example, would be regulated in a corridor so as to be acceptable to PT PLN as buyer and attractive to investors.
Indonesia is predicted to have geothermal potential as much 27,357 megawatt equivalent (MWe), the largest in the world, but only 1,000 MWe have been utilized for electricity. (*)