Govt prepares new geothermal rules<\/p>\n
JAKARTA (JP): The government is preparing a new regulation to
\nboost the development of geothermal resources and lower
\ngeothermal power prices, according to Minister of Mines and
\nEnergy Kuntoro Mangkusubroto.<\/p>\n
Kuntoro announced on Friday that under the planned
\npresidential decree, all geothermal power projects would be
\ncompetitively tendered in order to create fair power prices.<\/p>\n
The government will also explore the country's geothermal
\nresources and offer the geothermal fields to independent power
\nproducers for exploitation and power generation.<\/p>\n
This new scheme will reduce the amount of investment for
\ngeothermal development and subsequently reduce geothermal power
\nprices.<\/p>\n
\"Investor risk will be reduced and be shared with the
\ngovernment at the exploration stage,\" Kuntoro said.<\/p>\n
He said the government was determined to develop the country's
\ngeothermal resources because it is a clean and renewable energy
\nsource and the country has huge geothermal resources of 20,000
\nmegawatts.<\/p>\n
State oil and gas company Pertamina holds a monopoly on
\ngeothermal resources under a 1991 presidential decree.<\/p>\n
The state company may contract private companies to explore
\nand exploit geothermal resources as well as to generate
\nelectricity using geothermal steam and sell the electricity to
\nstate electricity company PLN or to other industries.<\/p>\n
PLN has thus far signed power purchase agreements to buy power
\nfrom 11 geothermal power plants located in Sarulla and Sibayak,
\nboth in North Sumatra; Salak, Patuha, Karaha, Kamojang, Wayang
\nWindu, Cibuni and Darajat, all in West Java; Dieng in Central
\nJava; and Bedugul on Bali.<\/p>\n
All the geothermal power projects were awarded without
\ntender.<\/p>\n
Geothermal contractors sell their power to PLN for an average
\n7 U.S. cents per kilowatt hour, higher than the average price of
\npower charged by contractors of coal and gas-fired power plants.<\/p>\n
Analysts attribute the high price for geothermal power to the
\nfact that geothermal contractors received their projects without
\ncompetitive bidding and they spend a lot of investment in
\nexploration. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-prepares-new-geothermal-rules-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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