Geothermal Progress Slows

Permit constraints and the high cost of investments due to remote construction sites remain key obstacles in developing geothermal energy in Indonesia, despite the tariff paid to the producer being revised upward by the government, according to executives and senior energy professionals.

In August, to encourage investment the government started obliging state power producer Perusahaan Listrik Negara to pay a tariff on electricity generated from geothermal facilities at 11 cents to 18.5 cents per kilowatt hour (kWh) depending on where the plants are located. Previously, that feed-in tariff was only as high as 9.7 cents per kWh.

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Posted October 23, 2012 by repit in News

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