Govt applies new scheme for electrical power from renewable energy

Jakarta (ANTARA News) – The Indonesian government plans to apply a new scheme to set the tariffs of electrical power from new and renewable energy power plants.

The government is making every effort to make the tariffs transparent, accountable and measurable, member of the National Energy Council (DEN) Tumiran said in a press conference in Jakarta on Monday.

“The government gives a room to ensure that the tariffs of the new and renewable energy power plants electrical power in all regions will not be the same, but they will be adjusted to the existing potential so that they will help supply energy in the regions,” he said.

With the new scheme, the prices of electrical power from new and renewable energy power plants will be different from one region to another because a maximum of 85 percent of the prices must be the regional production cost.

Citing an example, he said if the production cost of electrical power in the eastern part of Indonesia is Rp2.5 thousand per kWh, then the price of electrical power from new and renewable energy power plants will be 85 percent of Rp2.5 thousand, namely Rp2.1 thousand per kWh.

Especially in Java which has low production cost, the national production cost which stood at Rp980 per kWh last year will be applied in the island, he said.

“The move is intended to enable investors in the renewable energy sector to keep down prices and make investment cost cheaper,” he said.

Source: Antara News