Development and Implementation of Pricing and Incentive Policy to Address Incremental Costs of Geothermal Power Development

This World Bank-financed assignment from 2010 until 2011  formulated and helped the Government of Indonesia, particularly Directorate General of Minerals, Coal & Geothermal, to implement policies, pricing mechanisms and regulations to promote the investment in geothermal power projects necessary to meet Government targets. The assignment entailed: 

• Confirmation of geothermal resources at 50 potential geothermal fields,
• Evaluation of levelized power production costs at these fields  and  for competing conventional generation technologies on each grid using probabilistic simulation,
•  Identification of prevailing impediments to geothermal development, 
• Preparation of a geothermal risk allocation framework, and Definition of policy and pricing options to address prevailing impediments based on the risk allocation framework.