Policies

Ceiling Price for Geothermal (Ministerial Regulation No. 17/2014)

Source: JOIN IEA/IRENA Policy and Measures Database
Last updated: 26 August 2016

Regulation of Minister of Energy and Mineral Resources No. 17/2014 is the fourth revision of tariffs for geothermal power projects. With the three previous revisions, the Government has moved from a regime that applied different tariffs depending on voltage or capacity, to one that applied different rates depending on location, to one based on the geothermal tariff on PLN's cost of electricity procurement, to a single tariff ceiling applicable for all projects.

This recent revision reverts to a geographically based tariff regime; however this time enhanced with an added dimension of the timing of achieving Commercial Operation Date - i.e., the tariff ceiling will increase for projects having a more distant planned Commercial Operation Date (to cater for the effects of inflation).

New tariff ceilings are as follows:

Commercial Operation Date

Ceiling Price (US $ cents/kWh)

Region I

Region II

Region III

2015

11.8

17.0

25.4

2016

12.2

17.6

25.8

2017

12.6

18.2

26.2

2018

13.0

18.8

26.6

2019

13.4

19.4

27.0

2020

13.8

20.0

27.4

2021

14.2

20.6

27.8

2022

14.6

21.3

28.3

2023

15.0

21.9

28.7

2024

15.5

22.6

29.2

2025

15.9

23.3

29.6

 

Region I: Sumatra, Java, Bali

Region II: Sulawesi, Nusa Tenggara Barat, Nusa Tenggara Timur, Halmahera, Maluku, Irian Jaya and Kalimantan

Region III: Remote areas within Region I and Region II where the majority of the electrical power is generated from fuel-oil plants

 

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Technologies