Fazil Erwin Alfitri, president director of Medco Power, a private utility firm, is confident that the company’s core business, renewable energy, offers an abundance of opportunities.
“Renewable energy is a good business. The return is very attractive,” Fazil said.
One factor giving him confidence is the government’s move to raise the price floor paid to generators by state utility firm Perusahaan Listrik Negara for renewable energy sources including geothermal and hydro power.
The government has set the floor purchasing price of power generated from geothermal at 11 cents to 18 cents per kilowatt hour, depending on location. Solar sources may fetch 25 cents to 30 cents, depending on local components content.