News

Indonesian government to delay auction of geothermal working areas this year

Ida Nuryatin Finahari, Director of Geothermal at EBTKE/ ESDM on visit to Sorik Marapi (source: EBTKE)
Alexander Richter 4 May 2020

With ongoing work on improving data and regulations, Indonesia's Ministry of Energy & Mineral Resources (ESDM) has decided to postpone auctions for geothermal working areas planned for earlier this year.

The Ministry of Energy and Mineral Resources (ESDM) has postponed this year’s Geothermal Working Area (WKP) management offer. The Directorate General of New and Renewable Energy and Energy Conservation (EBTKE)  had planned to offer five WKPs earlier this year.

Geothermal Director Ida Nuryatin Finahari explained that the postponement of the WKP bid or auction was not solely because the preparation process was hampered by the corona pandemic (covid-19).

According to Ida, the WKP auction was postponed because the government was still focused on reforming and adding data, as well as improving regulations, especially regarding governance and electricity price schemes for Geothermal Power Plants (PLTP).

Later, the improvement of data and regulations will be the basis for WKP’s offer. “We are currently drafting regulations related to EBT rates, including PLTP, where one of the bases for WKP bidding is the tariffs. If the regulations regarding tariffs have not been completed, yes we cannot make offers,” Ida said to Kontan.co.id.

Unfortunately, Ida did not reveal the details and progress of the drafting of the regulation in question, and when the regulation would be issued. What is clear, the offer of five WKP will be backward from the original plan to be carried out in the Second Quarter of this year.

Taking into account the issuance of regulations, refinement of data, and preparation of auctions, Ida estimates that the bidding process for the five WKPs will only be carried out next year. “But we still try to do it this year,” she said.

Source: Kontan