Indonesia announces new feed-in-tariffs for geothermal

Jakarta, Indonesia (source: flickr/ yohanes budiyanto, creative commons)
Alexander Richter Alexander Richter 10 Apr 2013

The Indonesian government announces new feed-in-tariffs for geothermal power ranging from $0.105/ kWh for high temperature resources and projects of more than 55 MW to $0.19/ kWh for projects with lower temperature resources and a size of up to 10 MW.

News of today announce that the Indonesian government has adapted the feed-in-tariff for power generated from geothermal resources.

The prices are now structured in four categories, smaller than 10 MW, 10 MW-20 MW, 20 MW to 55 MW and more than 55 MW. There is also a distinction between high temperature (more than 225 degrees Celsius) and low/ medium temperature “less than 225 degrees Celsius).

The Ministry of Energy and Mineral Resources is completing the revision on electricity sales-purchase from geothermal power plant pricing regulation. The ministerial regulation revision will be signed in a few weeks.

“We are looking forward for the ministerial regulation revision on geothermal power plant to be signed in a few weeks. It would provide certainty for business stakeholders, and boost the development of geothermal power,” told Rida Mulyana, Director General of New Renewable Energy and Energy Conservation, during a seminar on geothermal, held in Jakarta today (4/10)

According to the director general, the most important point in the revision is the calculation mechanism for geothermal electricity price. The feed in tariff was previously based on areas, but it is settled now that it would be based on the Highest Standard Price (HPT in its Indonesian abbreviation). There are two basis used to calculate the HPT, i.e. the power plant capacity and the quality of geothermal energy.

The revision is being discussed by the Fiscal Policy Body at the Ministry of Finance, and it would be soon handed over to the Minister of Energy and Mineral Resources for signing. “We are pushing all effort, so the Ministerial Regulation can be signed soon,” Rida Mulyana promised.

He further elaborated that the pricing policy revision is made based on inputs from the Ministry of Finance and business stakeholders in geothermal sector. Owners of small-scale geothermal power plants admitted that the electricity sales is not profitable enough, compared to the large sum of investment.”