What Are the Incentives for EBT-Based Electricity Development?


The government will provide incentives and a more competitive price for electricity in the development of electricity based on new and renewable energy (EBT). The policy will be contained in a Presidential Regulation (Perpres) that will be enacted before the end of this year. The Director-General of EBT and Energy Conservation at the Ministry of Energy and Mineral Resources (ESDM) Sutijastoto said that the incentives and the electricity sale price scheme would also apply to electricity sourced from geothermal energy. One of the incentives sets the compensation for the costs of exploration and development of infrastructure in geothermal working areas (WK).

Thus, exploration and development projects will have lower risks. The electricity selling price from geothermal power plants (PLTP) would be more competitive while providing economic value for developers, which can also impact on more open access to low-cost funding for geothermal projects. "There is a compensation for geothermal exploration so that the electricity price would be more affordable," Sutijastoto said in a virtual press conference on Tuesday (7/28).

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and bimonthly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.