Indonesia: "The clauses are so biased, they could hamper geothermal exploration." - INAGA chairman

Electricity Price Rule May Hamper Geothermal Exploration: INAGA (Tempo.co)

The Indonesian Geothermal Association (INAGA) is disappointed with the Energy Ministry's regulation No.12/2017 on the use of new renewable energy for electricity. INAGA fears that the rule will hamper efforts to discover geothermal reserves.

"The clauses are so biased, they could hamper geothermal exploration," INAGA chairman Abadi Purnomo said on Sunday, February 5.

Abadi said the 11 clauses govern that a geothermal SPA can only be signed once the developer has proven reserves, which requires exploration that costs US$8 million-US$10 million per well.

"Who would want to pay for the explorations? And businesses will not take risks of drilling wells if there is no guarantee someone will buy the electricity," he said.

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