PGE, PLN to conclude revision of geothermal electricity price in December

The ongoing process to revise the price of electricity and steam from nine geothermal working areas operated by PT Pertamina Geothermal Energy (PGE) is expected to be concluded later this year, Bisnis Indonesia reported Tuesday.

The paper quoted Director of Geothermal at the Directorate General of New and Renewable Energy at the Ministry of Energy and Mineral Resources, Yunus Salfulhak as saying that PGE and state-owned electricity firm PT PLN are expected to sign a new sale and purchase agreement on December 5.

He explained that the proposed revision is currently being reviewed by the State Financial and Development Supervisory Agency (BPKP), before final approval by the Minister of Energy and Mineral Resources.

The two firms signed an MoU in April for the revision of the electricity and steam price.

The nine geothermal working areas include Sungai Penuh (2x55 MW) in Jambi, Hululais (2x55 MW) in Bengkulu, Kotamobagu (4x20 MW) in North Sulawesi, Lumut Balai (4x55 MW) in South Sumatra, Ulubelu (2x55 MW) in Lampung, Kamojang (1x30 MW) in West Java, Karaha (1x30 MW) in West Java, and Lahendong (2x20 MW) in North Sulawesi.

PLN only purchases steam from Hululais 1 and 2, and Sungai Penuh 1 and 2 working areas, the paper said, while it purchase power from the other geothermal power plant projects.

PGE President Director Irfan Zainuddin said that new prices have been applied for projects that have been in production including Kamojang, Ulubelu, and Lahendong. The agreed electricity price is set at 8.4-11.6 US cents per Kwh, while steam price is set at $7 cents per Kwh. (*)