JAKARTA: Energy and Mineral Resources Ministry has requested the National Development Planning Agency (Bappenas) to revise national geothermal development target to 2,170 MW from 3,900 MW in 2014.Such target revision is conducted due to late implementation of several geothermal projects particularly because the government is not yet provide assurance for businessmen engages in upstream geothermal activity, Secretary of the Directorate General of New Renewable Energy and Energy Conservation Djadjang Sukarna said.Such delay on activities and projects forces us to revise the prior target to 2,170 MW in 2014. The prior target of 3,900 MW will probably use in 2015, yet, we are still targeting 12,000 MW of geothermal in 2025," he said yesterday.Djadjang assessed the regulation has not been enough to stimulate businessmens desire to develop geothermal although the government released Energy Ministry Regulation No 2/ 2011 regarding PLNs assignment to purchase electricity from geothermal power plant and the benchmark price for such electricity purchase.On the other hand, the Finance Ministry Regulation No 77/PMK01/2011 is actually hampering geothermal development. Such regulation contains the implementation guideline of PLNs feasibility assurance for power plant development and/or transmission using renewable energy, coal, and gas, which is conducted through cooperation with private power developer.The regulation is only guarantee downstream activity while there is no guarantee for upstream. Thus, businessmen is also requesting for similar guarantee as well," he said.Finance Ministry is currently revising the regulation, which is expected to be completed in August this year.The Energy Ministry Regulation No 11/2009 on guidelines for the implementation of the geothermal business is currently also being revised.As earlier reported, the government has set the new renewable energy target at 17% in 2025 as regulated in Presidential Decree on National Energy Policy. However, an initiative to reach higher target by 25% in 2025 emerges, which is known as "Energy Vision 25/25".In the Energy Vision 25/25, the geothermal is expected to contribute 12,000 MW in 2025 or 800 MW of installed capacities for geothermal power plants per annum. (14) (t06/msw).

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