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PLN Has the Opportunity to Manage Geothermal Working Areas

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Oleh Wawan Budiyanto, Rabu, 25 Januari 2017 | 14:26 WIB - Redaktur: Penni Patmawati Rusman - 661

Jakarta, InfoPublik – The government provides an opportunity for the State Electricity Company (PLN), Ltd. to manage the working areas of geothermal energy utilization in Indonesia.

"Energy and Mineral Resources Minister has given the flexibility that If PLN is going to invest in geothermal energy sector, it can propose the government for a new Geothermal Working Areas (WKP) for geothermal development," said National Energy Council (DEN) member Tumiran in his statement in Jakarta, Monday (1/23).

According to him, if PLN is capable of managing the geothermal working areas, PLN will be able to manage the investment costs and risks so the state-owned company will be able to control the cash flow.

He added that PLN only needs to deliver a letter of request to secure the permission to manage the new geothermal working areas.

"We expect that PLN will not have to go through tender process, the permission could be given directly upon application and PLN determine the scope of WKP to utilize. PLN to develop the WKP, and as an off-taker it is competent to conduct the management," he said.

Tumiran described that although PT Pertamina has received many assignments to exploit geothermal energy, the opportunity for PLN will bring a healthy competition between the two companies.

"The important thing is the accelerated utilization of new and renewable energy in the national energy mix," he explained.

He was confident that the competition of the two companies in managing geothermal energy would benefit consumers because they would compete in achieving economical price.

He added that there was no detailed discussion regarding technical issues related to the management of geothermal in DEN meeting. But certainly, the target of geothermal management as one of the contributors to the energy mix at 23 percent by 2025 must be achieved.

Based on 2005-2025 Energy Planning Blueprint, geothermal power plants are expected to contribute 9,500 MW of electricity. (Translator: Erik Limantara)