Jero Signs Regulation on Geothermal Power Prices

Jakarta (Antara) - Energy and Mineral Resources (ESDM) Minister Jero Wacik said he had signed a new regulation on the benchmark prices of geothermal power. Ceiling price scheme is used in the geothermal power regulation signed on June 2, Jero said on the sideline of an energy conversion and renewable energy (EBTKE) convention and fare. "The price range begins from 11 - 12 US cents per kWh," he said here on Wednesday. Based on the EBTKE directorate general of geothermal power, the ceiling reference prices of geothermal power range from 11.5 to 29.6 US cents per kWh. The country is divided into three regions based on the prices set for geothermal power. The first region includes Sumatra, Java and Bali , the second region includes Sulawesi, Nusa Tenggara, Maluku, Papua, and Kalimantan and the third includes areas between the first and second regions. In the third region the transmission system is isolated and power supplies in the region are still dominated by y oil fired power plants most. According to the document, the prices of geothermal power per kWh will range from US$11.5 - 15.9 cents for the first region, from US$16.5 - 23.3 cents for the second region and from 25 - 29.6 cent for the third region . The price regulation will be effective this year until 2025. Head of the division of renewable energy of PT PLN M Sofyan said the new prices of geothermal power are within the capacity of the state electricity company . "The prices are also quite good for producers with the return of 12-14 percent much higher than 10-12 percent earlier," Sofyan said. (*)