Renewable Energy Investment Remain Low
September 28, 2015
The Energy and Mineral Resource Ministry recorded that investment value in the renewable energy sector for 2015 had only reached US$1.17 billion, or equals to 26 percent from the targeted US$4.8 billion.
"We are figuring out what is causing the slowdown," said Director General for Renewable Energy and Energy Conservation Rida Mulyana on Monday, September 28, 2015.
Rida said that the government has provided incentives to support investment in the form of increased electricity prices generated by renewable energy. One of the first prices adjusted by the government was prices for electricity generated by geothermal power plant, which ranges between 16 to 20 cents per Kilowatt hour (kWh). Rida claimed that these rates had turned Indonesia into one of the most favored geothermal investment location.
Despite the increased rates, investment in the geothermal sector is yet to show results as five geothermal power plants location offered to investors have not made any progress.
In an attempt to gain more investors, the ministry has raised its selling price by establishing a policy dedicated for wind power plants, biomass power plants, and solar-powered electricity. The ministry has set a price of 15-cents per kWh, which will be valid before 2016.