Indonesia Orders State-Owned Utility to Buy Geothermal Power

23 February 2011 (Last Updated February 23rd, 2011 18:30)

Indonesia has passed a ministerial decree, under which the state-owned utility PT Perusahaan Listrik Negara (PLN) will buy power from the country's geothermal plants to support investment in the energy source. PLN will buy geothermal power at a maximum of 9.7 US cents per kilowatt hour

Indonesia has passed a ministerial decree, under which the state-owned utility PT Perusahaan Listrik Negara (PLN) will buy power from the country's geothermal plants to support investment in the energy source.

PLN will buy geothermal power at a maximum of 9.7 US cents per kilowatt hour from new plants, according to the ministerial decree.

PLN will purchase power from power plants built before the ruling, at prices agreed by the government and the utility firms when they signed development rights.

Indonesian Geothermal Association head Surya Darma told Bloomberg that the decree will provide a legal platform for accelerating geothermal development and for completing power purchase agreements.