ELECTRICITY PROVIDER OF PRIVATE (PLN)

The private electricity providers, in particular geothermal energy, demanding a guarantee of purchase of PT Perusahaan Listrik Negara in the project the second phase of 10,000 megawatts. This is to provide certainty of return on private power investment.
According to observers electricity, Fabby Tumiwa, Friday (22 / 1) in Jakarta, guarantee purchases from PLN as a single buyer should only be given after the investment value calculation process and negotiations between both parties.
Chairman of the Indonesian Geothermal Association Surya Darma said, the development of geothermal energy portion occupies 40 percent of development projects generating 10,000 megawatts of electricity a second stage. The total investment cost of more than 13 billion U.S. dollars. Therefore, the necessary role of private power producers invest a very large.
Investor geothermal or geothermal no choice but to sell electricity to PLN as a single buyer, said Surya.
For that, investors need the certainty of the purchase of electricity by PLN after winning the working area of geothermal energy and electricity purchase contracts are clear.
Investors also expect geothermal electricity prices according to economics or risk being taken. This is because the investment is very large and risky if the explored reserves were not sufficient to be fuel for power plants built.
According to Surya, strong government commitment is needed in the development of geothermal energy. This can not be entirely left to the business to business relationships with PLN PLN because the position as sole buyer and external factors from the heat of the earth that may not be considered PLN, said Surya.
Another problem faced, Surya said, among other incentives and funding mechanisms is limited and overlapping areas of geothermal development in protected forests, nature reserve areas and national parks.
Fabby purchase assurance rate of PLN important for investors. However, before there was a guarantee of purchase, the business must offer what the price of electricity from geothermal energy for sale.
Necessary to determine how much to produce, what level of investment which, according to normal government, should set the standard procedure for calculating the selling price of electricity, he said.
Calculation of geothermal investment was, Fabby said, could be a consultant. Thus, private electricity sale price is not necessarily acceptable for private electricity selling price of geothermal is more expensive than current electricity prices. The price difference would increase the burden of government subsidies, he said.
Although the business negotiations between PLN and private power providers of geothermal energy, the government must know that development is not detrimental to the government as regulators and providers of electricity subsidies.
So, there are procedures that must be taken first before any guarantee purchases from PLN ..