Wednesday, December 13, 2017

Indonesia: New Regulation Improves Geothermal Electricity Tariff Negotiations

Pertamina Elaborates New Scheme for Geothermal Electricity Tariff Regulation (Netral News)

PT Pertamina (Persero) is supporting the new government regulation as stipulated in Ministerial Regulation No. 50 of 2017 on the Development of New and Renewable Energy (EBT) which opens opportunities for the process of determining tariffs by way of business-to-business (B2B) between state electricity company PLN and independent power developers (IPP).

The Director of Geothermal of Directorate General of New Energy, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources Yunus Saefulhak said the new regulation enables the B2B scheme if the average production cost of electricity generation is deemed inadequate.

He pointed out the electricity price for steam from the Rantau Dedap Geothermal Power Plant project located in Muara Enim and Lahat regency, Pagar Alam City, South Sumatera, was determined through a power purchase agreement (PPA) amendment process.