Indonesia:

Draft Bill on Geothermal will Address Issue of Power Shortages (English Hukumonline)

(Courtesy CIA.gov)

The Indonesian Government is optimistic that the Draft Bill on Geothermal will be passed this month before the previously set target of 1 July 2014. Represented by Jero Wacik, the Minister of Energy and Mineral Resources, the Government has said that the Draft Bill will help with the current national power deficit by encouraging the construction of geothermal power plants.

Mr. Wacik further explained that the Draft Bill will incorporate provisions to establish an attractive power purchase price scheme for geothermal project investors including feed in tariffs. He believes that the feed in tariffs will encourage more investor to invest in the geothermal sector.

“Prospective investors will surely always calculate the power purchase price so they can adjust investment costs. By providing an attractive feed in tariff scheme, this will surely stimulate investment flows,” said Mr. Wacik.

At present, geothermal-driven electrical supply is still considerably low. Records from the ESDM showed that until May 2014 Indonesia only produced geothermal electricity totaling 1,300 MW from a potential geothermal resource estimated at 28,000 MW.

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