Enel Green Power considering withdrawal from geothermal project in Indonesia
Seemingly frustrated with inconsistency on power-tariffs and negotiations with PLN, Enel Green Power is considering to withdraw from geothermal project in Indonesia.
News from Indonesia report on plans by Italian Enel Green Power (EGP) to hand back its geothermal working area (concession in Lampung province.
As reported by Petromindo.com, it seems that Enel is not happy about the inconsistency of the country’s government with its recommendations on power-tariffs as part of the PPAs between the developer and state-owned power utility PT PLN.
“While the price in the PPA has been recommended directly by the Ministry (of Energy and Mineral Resources), but in the end the government itself revised it,” a source within the company reported to Petromindo.
Enel has been working on the 55 MW Way Ratai geothermal project with local partner PT Optima Nusantara Energi since it was awarded the working area in July 2016.Enel was holding a 90% stake in the joint venture of the both companies. The project has been the first for Enel in Indonesia with investment plans of $30 million for the exploration phase of the project.