Price of geothermal power fixed at 8-9 US cent for kWh

The government has fixed the selling price of electricity to be produced by geothermal power plants at a range between 8 and 9 US cent, Investor Daily reported on Monday.

Sugiarto Harsoprayitno, the Director for Geothermal Development at the Ministry of Energy and Mineral Resources, was quoted by the newspaper last week that the government set such a high price range in order to attract investors and ease uncertainties they may feel about the future of their investment.

Such a price range is necessary given that the government needs huge investment in the sector.

The government is preparing the tender of 22 geothermal working areas which would be offered to investors as part of the second stage-10,000 megawatt power plant development program.

The geothermal power plants to be built under the program are expected to produce 4,733 power supply by the end of 2014. The electricity to be produced by the geothermal power plants will be bought by state owned electricity company PLN to cope with the power shortage in the country. (*)