Govt to Auction Geothermal Project
20 May 2014 13:18 WIB
TEMPO.CO, Jakarta - The Indonesian government is auctioning the Mount Lawu Geothermal Power Plant project soon. At the moment, a number of developers have already volunteered to work on the project, which is located on the border of Central Java and East Java, with a contract period of 35 years.
Trisnaldi, geothermal director at the Directorate General of New Renewable Energy and Energy Conservation, said the auction can start as early as next month after the Energy Minister approves the project's price scheme. Trisnaldi has prepared documents explicating the price scheme, which establishes that the lowest geothermal price is US$13.8 cents per kWh, and the highest is US$20.5 cents per kWh. The documents also state that the commercial operation date (COD) begins in 2020.
Although the auction is about to begin, the plant is not expected to start operating until six or seven years later. To expedite the project, the government will ask for a US$10-million deposit from the bidwinner; a collateral that must be deposited when drilling starts.
"Exploration must be done in three years otherwise the money will be taken [by the government]," he said.
KHAIRUL ANAM | BERNADETTE CHRISTINA MUNTHE | RACHMA TRI WIDURI
