In line with a plan to reduce the consumption of expensive diesel for electricity and a commitment to reduce carbon emissions, the government will open a tender for prospective investors in the field of solar energy, a senior government official said on Friday.
Rida Mulyana, the director general for new and renewable energy and energy conservation at the Energy and Mineral Resources ministry, said that the government will offer next week 72 locations across Indonesia deemed suitable to develop solar power plants.
“Of those locations, 22 are in Western Indonesia and the remaining 50 locations are in the eastern part of Indonesia,” he said on Friday in Jakarta.
Rida said that the ministry had recently set a price floor for solar energy to attract private investors.
“The price floor for solar energy is between 25 to 30 cents per kilowatt hour. If the local content is above 40 percent then the price floor will be around 30 cents,” he added. “But it will still be offered through a tender procedure, meaning that the final price may be lower.”