Calls for Reducing Cost for Geothermal Power Generation in Indonesia
Photo: Jacobs
To support the efficiency of technology and infrastructure, Member of Commission VII DPR RI Mulyanto encourages the Government to make various efforts to reduce the cost of producing electricity from geothermal sources.
Without relying on state budget subsidies, this important effort is made so that the economic price of geothermal electricity is more competitive than electricity from other energy sources, as reported by Liputan6. Mulyanto revealed that to remove the economic price barrier for electricity from geothermal energy sources (PLTP), which is still above PLN's basic cost of generation (BPP), it is not necessarily done with government subsidies or providing electricity compensation fund for the difference in costs. "That is not an attractive idea in the midst of a pandemic condition where our fiscal policy is to focus on buying vaccines and public health costs," said Mulyanto. With the current fiscal condition, he added, where the state budget deficit is more than 5 percent of gross domestic product (GDP), it does not make sense for the government to be burdened with additional subsidies for geothermal electricity. According to him, an attractive solution actually comes from the industry because it seeks to reduce capital expenditure (Capex) costs such as road infrastructure costs, especially those of a social nature that must be built by developers and high-risk exploration costs.
Mar 9, 2021
Calls for reducing geothermal power generation cost in Indonesia (thinkgeoenergy.com)
Photo: Jacobs
News: Calls for Reducing Cost for Geothermal Power Generation in Indonesia
To support the efficiency of technology and infrastructure, Member of Commission VII DPR RI Mulyanto encourages the Government to make various efforts to reduce the cost of producing electricity from geothermal sources.
Without relying on state budget subsidies, this important effort is made so that the economic price of geothermal electricity is more competitive than electricity from other energy sources, as reported by Liputan6. Mulyanto revealed that to remove the economic price barrier for electricity from geothermal energy sources (PLTP), which is still above PLN's basic cost of generation (BPP), it is not necessarily done with government subsidies or providing electricity compensation fund for the difference in costs. "That is not an attractive idea in the midst of a pandemic condition where our fiscal policy is to focus on buying vaccines and public health costs," said Mulyanto. With the current fiscal condition, he added, where the state budget deficit is more than 5 percent of gross domestic product (GDP), it does not make sense for the government to be burdened with additional subsidies for geothermal electricity. According to him, an attractive solution actually comes from the industry because it seeks to reduce capital expenditure (Capex) costs such as road infrastructure costs, especially those of a social nature that must be built by developers and high-risk exploration costs.
Mar 9, 2021
Calls for reducing geothermal power generation cost in Indonesia (thinkgeoenergy.com)
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