Indonesia To Raise Prices It Pays Geothermal Plants Up To $0.15/KWH

JAKARTA–The Indonesian government will raise the prices that state-owned utility PT Perusahaan Listrik Negara pays geothermal power plants for electricity likely next month to attract investment in the geothermal sector as the country seeks to reduce its reliance on fossil fuel-fired power plants, a government official involved in the matter said Tuesday.

The official, who declined to be named, told Dow Jones Newswires that the government will raise the price it pays to geothermal power plants located in Java to $0.11 per kilowatt-hour; to $0.10 in Sumatra; to $0.12 in Southern Sulawesi; to $0.13 in northern Sulawesi; and to $0.15 in the eastern part of Indonesia.

The prices are currently capped at $0.097, which most investors deem “uneconomical,” he said.

“This is expected to attract investors to develop geothermal power plants,” the official said.

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Posted July 2, 2012 by repit in News

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