TEMPO.CO, Jakarta - Energy and Mineral Resources (ESDM) Ministry foresees investment realization in new and renewable energy to exceed the full-year target of US$1.37 billion.
Director General of Renewable Energy and Energy Conservation, the Energy and Mineral Resources Ministry, Rida Mulyana said despite the global economic slowdown and other obstacles, investment climate of Indonesia’s new and renewable energy remains attractive.
As of end-July, the sector’s investment realization has hit US$867 million. “Overall, the investment realization has reached 63.5% of US$1.37 billion full-year targets,” he said as quoted from the ministry’s website, Monday, August 8, 2016.
According to him, investment realization in geothermal has reached US$56 million or 58.3% of US$96 million targets. Investment realization in bioenergy has reached US$289 million or 93.2% of US$31 million targets. Whereas investment realization in various new renewable energy has only reached US$180,000 or 18% of US$1 million targets.
Rida is optimistic that investment in new renewable energy could improve in the second half. “Until the end of the year, the US$1.37 target could be significantly exceeded,” he said.
Because the ministry will conclude the revised electricity rate for new renewable energy this year, he explained. As of June, the ministry has concluded the Energy Ministry Regulation 19/2016 on electricity rate for solar power plants (PLTS), Ministerial Regulation 21/2016 on revised electricity rate for biomass and biogas, and Ministerial Regulation 44/2015 on electricity rate hike for Municipal Waste Power Plants.
“For example, biomass electricity rate increases to Rp1,150 per kilowatt hour (kWh) to US$13.5 cents per kWh or a 60% increase. Moreover, biogas electricity rate from Rp1,050 per kWh to US$10.64 cents per kWh or up by 30%,” Rida said.
Furthermore, in the year’s second half the ministry is aiming to conclude three ministerial regulations on electricity rate, namely ministerial regulation on electricity rate for roof-top solar power plants, wind turbines, and ocean wave power plants.