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New feed-in-tariff for Indonesia to be introduced this month

Merdeka Palace - one of 6 presidential palaces in Jakarta/ Indonesia (source: flickr/ BxHxTxCx, creative commons)
Alexander Richter Alexander Richter 7 Nov 2016

A new geothermal feed-in-tariff mechanism is expecting the signature of Indonesia's President and is likely to be set this month (November 2016)

The Indonesian geothermal feed-in-tariff has been a matter of discussion for a long long time. Recently we reported about efforts to change the existing system, based on those discussions, industry concerns and a study worked on by ARUP.

Now, the government expects to introduce the new feed-in-tariff mechanism already this month. With this it hopes to push down the large up-front capital cost and limit the risks of geothermal exploration to continue to reach the ambitious 7,000 MW geothermal power targets.

In a statement to the Jakarta Post yesterday, Yunus Saefulhak, the Energy and Mineral Resources Ministry’s director of geothermal energy, said that “the new policy aims to provide security for investors as geothermal exploration accounts for around 60% of the investment costs.”

“In future, the auction of geothermal work areas will not be based on price anymore, but according to the work program and exploration commitment,” he said.

The feed-in-tariff would require PLN to buy geothermal electricity at defined tariffs.

Currently, the draft regulation is waiting to be signed by the country’s President, with the expectation that this will happen this month (November 2016)

 

Source: The Jakarta Post