Wednesday, 20 June 2018 | 04:49 WIB

Minister Jonan: Renewable Energy Prices Will Be More Competitive in the Future

ESDM Minister Ignasius Jonan.

JAKARTA, NETRALNEWS.COM - Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan is optimistic that future renewable energy prices can be more competitive.

It’s approved with the selling price of sea-power plants in East Nusa Tenggara (NTT) that eventually could fall to USD 7.18 cent per kWh from the previously offered at USD 16 cents per kWh.

"The NTT Governor once proposed to me an ocean current power. I asked him how much, he said at least USD 16 cents per kWh. I said if USD 16 cents please have a drink and go home. If it could be under USD 10 cents we will be discussing," Jonan said, Wednesday (9/13/2017), during a speech at 6th IndoEBTKE ConEx event at Balai Kartini, Jakarta.

Jonan said after going through a tough negotiation process and re-study, ultimately the selling price of the ocean current power plant agreed of USD 7.18 cents per kWh.

"After being studied again, they get an average of above four meters per second, even at some point it can reach five meter per second. I ask what price, I will not bargain. You know how much they asked for? They said they have re-studied it, asked if agreed at USD 7.18 cents, I said if USD7.18 cent I believe State Electricity Company (PLN) 20 MW can buy," Jonan said.

"So, President directs the renewable energy to be encouraged," he said. "Entrepreneurs need our profits to count, but the people must also be able to reach the electricity tariff," he added.

According to him, renewable energy is still new things in Indonesia, but should not be a barrier to be developed with a competitive price level.