PLN ordered to buy geothermal power

Indonesia has ordered state-owned utility PLN to buy power from the country’s geothermal plants. This is meant to support investment in the alternative energy source.

The Jakarta-based company is required to buy geothermal power at a maximum of 9.7 US cents per kilowatt hour from new plants, according to a ministerial decree effective on Feb. 16.

For power plants built before the ruling, Listrik will buy electricity based on prices agreed by the government and the utility companies when they signed development rights.

“The decree will give a legal platform for accelerating geothermal development and in completing power purchase agreements,” said Surya Darma, head of the Indonesian Geothermal Association.