Unocal receives free CDM funds for its geothermal power project
Wednesday, November 13 2002 - 03:12 AM WIB
State Minister for Environmental Affairs Nabiel Makarim confirmed on Tuesday about the disbursement of the CDM funds to the Saruna and Wayang Windo geothermal power plant, saying that the geothermal power plant was the first Indonesian company to receive such free financing assistance.
In accordance with the Kyoto Protocol, developed countries whose carbon emission is still above four percent are required to give free financial assistance to pollution-free companies in developing countries through the so called Clean Development Mechanism (CDM) program.
Under such financial assistance scheme, developed countries are required to provide funding of US$20 per ton of carbon it produced to pollution-free industries in developing countries. The fund is managed by CERUPT which decides which of companies in developing countries are qualified to receive such financial assistance. It is not clear yet how much Unocal receives for its Indonesian geothermal power project.
Indonesia?s Energy and Conservation Watch, however, questioned the disbursement of the funds to Unocal?s Sarulla and Wayang Windu geothermal plant. "It is not fair if commercial companies like the geothermal power operator receives free financial assistance," the agency?s director Tri Mumpuni Iskandar said.
According to Mumpuni, with such financial assistance, Unocal should be able to reduce the price of its power sold to state electricity company PLN to as low as 3 U.S. cent per kWh from the current 5.6 cent. He said that such financial assistance which is aimed at creating clean environment in the world should be used for the interest of many people.
"If the assistance is given to an electricity operator, the price of its electricity should be lower," he said. (*)