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ESDM Ministry to Issue Geothermal Energy Incentives
WINDONESIA July 5, 2024
A GPP in operation. (Kontan/Cheppy A. Muchlis).
The Energy and Mineral Resources (ESDM) Ministry is drafting several incentives to encourage the development of geothermal energy.
ESDM Ministry New and Renewable Energy and Energy Conservation (EBTKE) Director-General Eniya Listiani Dewi stated that the government is currently preparing various new incentives for the geothermal power plant (GPP) sector.
"Geothermal TKDN (local content level requirement) incentives will consider both downstream and upstream aspects. Additionally, the priority for the usage of excess energy from GPPs as renewable energy will be regulated in the Draft Ministerial Regulation on New and Renewable Energy Power Purchase Agreements (PJBL)," Eniya stated on Jul. 2, 2024.
Eniya added that other incentives include the use of government drilling funds managed by Sarana Multi Infrastruktur to gather data on potential Geothermal Working Areas (WKP), including WKP Waisano in East Nusa Tenggara Province, Jailolo in North Maluku Province, and other locations.
There are currently two WKP resulting from government drilling wgucg are up for auction, namely WKP Cisolok Cisukarame in Sukabumi Regency, West Java Province, and WKP Nage in Flores Island, East Nusa Tenggara.
"The ESDM Ministry is also conducting studies and coordinating with the Finance Ministry to add fiscal incentives that could enhance the economic optimization of projects," Eniya explained.
PLN has announced plans to encourage collaboration in the development of nine Geothermal Working Areas (WKP) with a total capacity estimated to reach 260 megawatts (MW).
The nine geothermal locations that will soon be developed by PLN are Tulehu in the Central Maluku Regency of Maluku Province, Songa Wayaua in the South Halmahera Regency of North Maluku, Tangkuban Perahu in West Java Province, Ungaran in Central Java Province, Kepahiang in Bengkulu Province, Lake Ranau in both South Sumatra Province and the West Lampung Regency of Lampung Province, as well as Atadei, Oka Ile Ange, and Mount Sirung in East Nusa Tenggara.
The development of GPP power rose by 57.4 MW year-on-year to 2,417.7 MW as of 2023 according to ESDM Ministry data. This year, the government targets for the installed capacity of GPPs to reach 2,472.7 MW.
Source: industri.kontan.co.id
