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Indonesia to have waste-powered electricity plants by 2018: Minister

Coordinating Maritime Affairs Minister Rizal Ramli hopes to establish waste-powered electricity plants in eight big cities within two years.

The problem with waste-powered plants is the price, as the average price of electricity in Java is only 6 US cents per kilowatt hour ( kwh ). This amount is considered too low as such plants have a double function of acting as an incinerator for waste and power generator.

“We’ve thought about that. The President issued a decree [Keppres] two months ago that specifies a new rate of 18.5 cents per kwh. I think that is more than enough,” Rizal said on Tuesday in Jakarta.

Rizal claimed that the breakeven point of waste-powered electricity plants was 14 cents to 16 cents per kwh. He said about 10 cents of that could be allocated for waste management, while the remainder would cover electricity generation.

“It provides an adequate margin. We will introduce the new tariff in eight cities, namely Jakarta, Bandung, Tangerang, Surabaya, Solo [Surakarta], Makassar, Medan and Semarang. We will have pilot projects in those cities in two years,” he said.

Source: The Jakarta Post