Kamis 20 Mar 2014 23:10 WIB

Indonesia, World Bank, ADB to calculate geothermal electricity selling price

Rep: Nidia Zuraya/Mutia Ramadhani/ Red: Yeyen Rostiyani
Technicians check facility at Pertamina Geothermal Energy in Bandung. Indonesia has 40 percent of the world. (illustration)
Foto: Republika/Tahta Aidlilla
Technicians check facility at Pertamina Geothermal Energy in Bandung. Indonesia has 40 percent of the world. (illustration)

REPUBLIKA.CO.ID, JAKARTA - Director of Geothermal at Directorate General of New and Renewable Energy, Conservation Energy, Tisnaldi said that government in cooperation with World Bank and Asian Development Bank (ADB) would conduct a study to calculate the geothermal electricity selling price. 

"We also involve PLN, Ministry of Finance, developers and also associations. Hopefully it will be a final report within two years," Tisnaldi said on Thursday.

Currently, the highest selling price of geothermal energy, determined by government at 9.7 cents per kWh. According to Indonesian Geothermal Association, the economic selling price must be within the range of 11-13 cents per kWh for power plant with 55 mega watt (MW) capacity, while for power plant under 55 kWh must be sold within the range of 16-17 cents per kWh.

Government then can use result of the study to draft regulation on selling price of electricity from  geothermal. Meanwhile, government plans to offer five geothermal sites through auction. 

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