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"Hopefully, Feed in Tariff regulation for geothermal will issue next week,” said Director General of New, Renewable Energy and Energy Conservation MEMR, Kardaya Warnika in Jakarta, Wednesday (4/6/2012).
According to him, FIT is one of the policies giving price assurance to investors. He stated that the current geothermal tariff is all the same all over Indonesia. “In fact, different areas have different need. The need of NTT Province is different from the need in Java, for example in Java the price is set US$ 10 cent/kWh,” he said.
Kardaya explained that we have 29.000 MW of geothermal potency and we only utilize it for 1.226 MW. “Within these two years, we will encourage acceleration within 3.000 up to 4.000 MW. The acceleration will be performed by reducing all constraints,” he continued.
Besides price assurance, overlapping and PLN purchase guarantee have been considered to find the solution.
“We need to change the perception because previously geothermal is considered as mining activity, now it must be changed that geothermal is not included as mining,’ he said. Besides, in the area of geothermal generation automatically will be planted by trees because if there is no tree, there won’t be absorbed water. If there is no absorbed water, there won’t be steam out.
Meanwhile, related to electricity purchase guarantee, the Government guarantee that PLN will pay based on the contract. “If PLN is not able to buy, the Government will,” affirmed Kardaya.
By the acceleration of geothermal utilization, renewable energy is hoped to be able to replace oil fuels (BBM) for generation fuel, so Goods Provision Cost of PLN electricity will decrease. (AK)
