What Are the Incentives for EBT-Based Electricity Development?

By Editorial Team 29/07/2020
Executive PLN
Summary

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).

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