President Joko Widodo has signed a presidential regulation (Perpres) concerning new and renewable energy (EBT) electricity tariffs, which is expected to be issued this week, the Energy and Mineral Resources (ESDM) Ministry has said.
“It will be issued formally this week since I have heard that it has been signed, but the (administrative) formalities have not been completed,” Director General of New and r
Renewable Energy and Energy Conservation at the ESDM Ministry Dadan Kusdiana informed at the 8th Indonesia International Geothermal Convention & Exhibition (IIGCE) 2022 here on Wednesday.
The issuance of the regulation is expected to optimize the benefits of increasing the capacity of geothermal power plants in Indonesia, he added.
The government has chosen to implement the ceiling price scheme by determining the highest benchmark price to boost the economic value of geothermal energy, especially on Java Island, where the cost of supply (BPP) is very low.
Through the issuance of the presidential regulation on EBT electricity tariffs, the Indonesian government is looking to make the ecosystem for new and renewable energy businesses in the country more attractive. It is also expected to boost the clean capacity of installed power generators.
During Wednesday’s convention, the ESDM Ministry inaugurated the operation of two geothermal power plants (PLTPs)—PLTP Sokoria, which has a capacity of 5 megawatts (MW), in Ende District, East Nusa Tenggara Province, and PLTP Rantau Dedap, which has a capacity of 91 MW, in Muara Enim District, South Sumatra Province.
Indonesia is continuing to develop EBT as an environmentally friendly energy source, which can reduce greenhouse gas emissions in the energy sector, where it is targeting to cut emissions by 300 million tons through its own efforts or 450 million tons with international assistance.
According to the mandate of Law Number 16 of 2016 concerning the ratification of the Paris Agreement, Indonesia is committed to reducing greenhouse gas emissions in all sectors by 29 percent through the country’s own efforts or 41 percent with international assistance by 2030.
Source: Antara News