Thursday, August 11, 2016

Indonesia: Geothermal Feed-in Tariff Mechanism Being Prepared

Govt prepares feed-in tariff mechanism to boost geothermal energy (The Jakarta Post)

The Indonesian government is preparing a feed-in tariff mechanism to assist geothermal developers in a bid to boost the development of the geothermal energy sector in the country, a minister has said.

The Energy and Mineral Resources Ministry's geothermal director Yunus Saefulhak said the feed-in tariff mechanism was better economically in facilitating geothermal developers as this new tariff regime adopted a fixed-price system. In a fixed-price system, energy suppliers do not have to negotiate with state-owned electricity firm PLN as the power-off taker.

He further said the feed-in tariff mechanism aimed to assist power plants with capacities ranging between 5 to 220 Megawatts (MW) and accommodate tariff variables.

Yunus said the ministry, along with a consortium of researchers consisting of Arup, Japan International Cooperation Agency (JICA) and geothermal engineers, was currently studying the feed-in tariff scheme.

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