Tuesday, December 22, 2015

Indonesia: Push to Agree New Geothermal Energy Price Before Year End

In Power Price Battle, Geothermal Takes a Hit (Jakarta Globe)

(Courtesy Pertamina Geothermal Energy) 
The push to harness geothermal energy could lose steam because of a price standoff between producers and the sole distributor.

State-owned electricity monopoly PLN (Persero) and Pertamina Geothermal Energy have reached an impasse in renewing their power purchase deal for electricity from PGE’s Kamojang and Lahendong plants.

Combined, the 235 MW Kamojang plant, in West Java, and the 60 MW Lahendong facility, in North Sulawesi, account for a fifth of Indonesia’s current geothermal production, which PGE sells to PLN at 6.2 and 9.7 cents per kilowatt-hour, respectively.

That deal, however, expires at the end of this year. In negotiations for a new deal, PLN has offered to buy electricity from Kamojang at 3.3 cents per kWh – less than half of PGE’s asking price of 7.4 cents per kWh. PLN’s offer for power from Lahendong – at 5.8 cents per kWh – is also far below the 10.1 cents per kWh that PGE is seeking.

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