In an attempt to attract more private investors in the development of solar energy, the government will set a feed-in tariff for electricity produced by solar power plants.
“The tariff will be as high as 25 cents per kilowatt hour,” Finance Minister Agus Martowardojo said after a meeting with several other ministers on Tuesday.
A feed-in tariff is the rate that state utility firm Perusahaan Listrik Negara must pay for electricity generated from privately owned power plants.
The development of solar power facilities would still be conducted through a competitive bidding process and the electricity generated will be purchased by PLN, Agus said.
“Should the investors decide to use more locally made components, then the price would be higher,” he added.
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