Program (FTP) phase II with a total generating capacity of...

Program (FTP) phase II with a total generating capacity of 10,000 MW and the majority use of
renewable energy. The FTP phase II is stipulated in Presidential Regulation No. 04 of 2010 and
Minister of Energy and Natural Resources Regulation No. 15 of 2010. To achieve these targets, the
government issued Minister of Energy and Natural Resources Regulation No. 02 of 2011 which
assign PLN to perform the Purchasing Power Agreement (PPA) or the Energy Sales Contract (ESC)
with Independent Power Producer (IPP) to the development of geothermal power plants with the
following conditions:
• The ceiling price is 9.7 cents $/kWh
• If the price of bid results above the ceiling price 9.7 cents $/kWh, PPA/ESC will be negotiated.
• If the price of bid results under the ceiling price 9.7 cents $/kWh, the price is final in PPA/ESC
without negotiation
• The risk of exploration is a developer responsibility.
GW