PGE calls for end to lengthy negotiation of feed-in tariff

PT Pertamina Geothermal Energy (PGE) has asked the government to set a fixed price for electricity to be produced from geothermal power projects to avoid lengthy price negotiation with state-owned electricity firm PT PLN.

PGE President Director Ronny Gunawan was quoted by Kontan as saying that his company wants a similar treatment given to coal-fired power plant projects with capacity of more than 100 MW, in which the government fixed the electricity price to be sold to PLN at US$8.4 per kwh, thus eliminating price negotiation process.

Ronny said that lengthy price negotiation process with PLN would cause delay in the development of geothermal power plant projects.

He said that PGE plans to develop eight geothermal power plant projects until 2019 including the Ulubelu unit 3 and 4 in Lampung with combined capacity of 110 MW, Lumut Balai unit 1 and 2 (110 MW), Lumut Balai unit 3 and 4 (110 W) in South Sumatra, Lahendong unit 5 and 6 (40 MW) in North Sulawesi, and Karaha unit 1 (30 W) in West Java. Two other projects are located in Sungai Penuh, Jambi, and in Hululais, Bengkulu. (*)