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 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.