Fixed Price for Electricity from Geothermal Sources

This Regulation is a part of the government’s energy diversification and conservation program which is designed to drive energy consumption to cleaner and renewable fuel and energy sources. The general legal framework is contained in the provisions of Article 20(1) of Government Regulation 59 of 2007.

Basically, Regulation No. 14 of 2008 permits any cooperative, regional owned enterprise, or private enterprise to sell electricity derived from a geothermal source once they hold a permit for that purpose.

The fixed price of this electricity is set at 85% for high and medium tension systems with a capacity range between 10 and 55 megawatts (MW). For high tension systems it is set at 80% for units with a capacity of 55 MW or higher.

The Regulation also states that the winner of any auction conducted under the provisions of Article 3 of the Regulation will be determined based on lowest offered price. The on-sale of this electricity will be determined based on prevailing macro-economic indicators.

This Regulation has been in force since 9 May 2008.