Indonesia announces incentives to lure geothermal investment
23 Jul 2012
Out-law.com
It will raise the feed-in tariff (FiT) for geothermal power plants from 9.7 US cents per kilowatt hour (kWh) to between 10 and 17 cents per kWh. The FiT, or guaranteed price paid for energy by state electricity company PLN, will vary according to where the electricity is generated to reflect the "different need" of different areas, according to a statement by the Ministry of Energy and Mineral Resources.
Energy and Mineral Resources Minister Jero Wacik told the Jakarta Post that the increased tariff would attract investment into the country's potential geothermal market. Indonesia currently uses only 1.226MW of its 29MW geothermal potency, according to the Ministry.
"If we set [the geothermal price] at only nine cents it means the price is only one-fifth to the price of electricity from fuel-fired energy," Wacik told the paper. The current price for energy from fuel-fired power plants is between 35 to 45 cents per kWh.
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