bakrie website JAKARTA - Panax Geothermal Limited, a company...

bakrie website

JAKARTA - Panax Geothermal Limited, a company listed on the Australian Stock Exchange, suggesting an increase up to 33% of the selling price of electricity produced three geothermal working areas managed company in Indonesia to PT PLN (Persero), state-owned enterprises in the electricity sector. Kerry Parker, Panax Managing Director, said the adjustment is required based on feed-in tariff scheme for geothermal electricity prices set by the government.

All three work areas belonging Panax Geothermal in Indonesia, namely Sokoria, East Nusa Tenggara, Dairi Prima, North Sumatra, and Ngebel, East Java. Company in cooperation with PT Bakrie Power, a subsidiary of PT Bakrie & Brothers Tbk (Bakrie & Brothers) to manage the geothermal working areas.

"The increase in geothermal electricity rates that have been determined by the Minister of Energy and Mineral Resources, it also resulted in new electricity rates that the company expects," he said in an official statement by the company.

Price of geothermal electricity in geothermal power plant (PLTP) Sokoria targeted to increase to U.S. $ 150 per megawatt hour (MWh), including carbon credits, up 20% from the previous electricity price U.S. $ 125 per MWh, including carbon credits. While the price of electricity from geothermal power plants targeted Dairi Prima rose 13.5% to U.S. $ 170 per MWh, including carbon credits, from U.S. $ 150 per MWh, including carbon credits. While electricity prices in PLTP Ngebel targeted to increase 33% to U.S. $ 120 per MWh of U.S. $ 90 per MWh.

"The price increase is still being finalized by PLN and expected price increase is the key to improving the financial performance of the company," he said.

He said the company has received a planned increase in electricity prices from the PLN were also reported to the Minister of Energy and Mineral Resources and the Ministry of Finance since June. Panax Geothermal welcomed the increase in the price of geothermal electricity through feed-in tariff scheme for this gesture of goodwill from the Government of Indonesia to improve the incentives for developers of new renewable energy investors. Based on the feed-in tariff regulations geothermal electricity prices are expected to rise to an average of around U.S. $ 125 per MWh from U.S. $ 97 per MWh.

Feed-in tariff is different adapted to the power plant site. When you are near the source of the transmission, the power prices rose to an average of U.S. $ 120 per MWh, while when away from the access infrastructure, the electricity prices even higher around U.S. $ 145 per MWh.

"This means the government of Indonesia creates confidence and confidence for renewable energy developers. For Panax, is expected to have an impact on current payback useful for developing the next project," he said.

For Ngebel project, Panax Geothermal plans to increase power generation capacity to 220 megawatts from the initial plan by 165 megawatts. Increasing this capacity he intended to meet the increasing electricity demand of Indonesian society, especially in East Java.

Ali Herman Ibrahim, Director of Bakrie Power, said the price adjustment in accordance with the rules of the feed-in tariff is the new normal. "Once the tender is no price limit, many projects are not economically viable, so it is natural that the government should adjust the price according to the rules of the new improvements," he said.

Wacik, Minister of Energy and Mineral Resources has approved a geothermal electricity price increases through the issuance of Minister Regulation No. 22 Year 2012 on assignment for PLN to buy electricity from geothermal power plant and the reference price of electricity purchased by PLN from geothermal power plant.

This regulation stated a geothermal electricity prices for Sumatra set at U.S. $ 10 cents per kilowatthour (kWh), while in the medium voltage pegged at U.S. $ 11.5 cents per kWh. As for Java, Madura and Bali prices on high voltage set at U.S. $ 11 cents per kWh, while the medium voltage U.S. $ 12.5 cents per kWh.

For South Sulawesi, West Sulawesi and Southeast Sulawesi rates on high voltage set at U.S. $ 12 cents per kWh for medium voltage while the price is set at U.S. $ 13.5 cents per kWh.

In North Sulawesi, Central Sulawesi and Gorontalo in high-voltage electricity prices set at U.S. $ 13 cents per kWh while the middle voltage is pegged at U.S. $ 14.5 cents per kWh, then to East Nusa Tenggara and East Nusa Tenggara pegged electricity rates U.S. $ 15 cents per kWh in high voltage medium voltage while the price set at U.S. $ 16.5 cents per kWh, and in the Moluccas and Papua for high voltage pegged at U.S. $ 17 cents per kWh, while the medium voltage U.S. $ 18.5 cents per kWh.

"Raising prices is one of the easiest incentive. Periodically be raised so that the industry both live, power companies and the government is also feeling bad," he said.

In Sokoria geothermal project, Panax be the operator, but not the majority shareholder. The company only has a 45% stake and its majority shareholder, Bakrie Power by 55%. PLTP Sokoria a capacity of 30 megawatts.

While at Dairi Prima capacity of 25 megawatts, the company became the majority shareholder of the operator as well as 51% and the remaining 49% owned by Bakrie Power.

As in PLTP Ngebel 165 megawatt capacity, he also became only the operator with an ownership interest of 35% and the rest is owned by Bakrie Power.

Adiatma Sardjito, Corporate Secretary of PT Pertamina Geothermal Energy, a subsidiary of PT Pertamina (Persero), said the company will propose negotiating the selling price of electricity in geothermal projects that are being and will be developed by the company. "We will seek to PLN, so that our electricity sales price negotiated back," he said.

Pertamina Geothermal requires funding of U.S. $ 4 billion to increase capacity to 2,000 megawatts of geothermal power plants in 2018. Currently existing generating capacity in geothermal working area of ??292 megawatts of new company.

16 Developers

Jajang Sukarna, Secretary of the Directorate General of New Renewable Energy and Energy Conservation, Ministry of Energy, PLN asked to sign a power purchase agreement with 16 geothermal developers. PLN related concerns regarding the additional subsidy due to the increase in electricity tariff geothermal.

"PLN should not worry because the power plants that was only operate three to four years. At that time, the production cost of electricity to other energy sources would have been higher," he said.

M Sofyan, Head of Renewable Energy Division of PLN, said the company has yet to be signed a power purchase agreement with 16 developers having to coordinate with related government subsidies due to the additional potential application of the rule.

"The numbers are there, but can not be mentioned. We will first coordinate with the Ministry of Energy and Ministry of Finance," he explained. []