Geothermal Power Plant Competitiveness in Indonesia: Economic and Fiscal Policy Analysis
- Key words
- geothermal electricity price, fiscal policy, carbon tax, competitiveness
- Location
- Indonesia
- Conference
- Australian Geothermal Energy Conference
- Year
- 2010
- Language
- English
Full text
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Abstract
This paper assesses geothermal power plant (GPP) competitiveness through evaluating its production costs and the application of government incentives, i.e. the Clean Development Mechanism (CDM) and the implementation of carbon tax. Then the GPP competitiveness is compared to coal power plant. The results show that the effect of duty free, value added tax free (VAT), implementation of investment tax credit, and pre survey government incentive can decrease the geothermal selling price by US 0,75
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