The Energy and Mineral Resources Ministry of Indonesia plans to raise feed-in tariffs for electricity produced by geothermal power plants, in an attempt to attract more investors. The World Bank has recommended a price of geothermal energy between US$12c/kWh and US$30c/kWh, prompting the Indonesian government to review its geothermal pricing policy. A new auction system should be introduced, under which the government would select winners according to their bids. Feed-in tariffs should raise from their current US$10-18.5c/kWh level to US$11.5c-29c/kWh. The new price range will be effective until 2025.
Indonesia accounts for about 40% of the global geothermal potential, amounting to an estimated 27,000 MW, but geothermal energy only accounted for 2.89% of total installed capacity in 2013. Geothermal is expected to account for 23% of the energy mix by 2021. Indonesia is seeking to attract investors, as geothermal projects have been slowing down over the last few years due to a forestry law banning geothermal development in conservation areas (this ban could be revoked).

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