Economic analysis of 1x55 MW capacity geothermal field development

Geothermal is a potential renewable energy source to be developed in Indonesia. Indonesia’s geothermal energy potential reaches 25,386.5 MW, but only 1,948.5 MW is used for electricity generation. One of the biggest obstacles to geothermal development for power generation is geothermal electricity tariffs and the absence of regulatory reform or the establishment of attractive incentives to further ensure the economics of geothermal power projects, This paper tries to look at the economics of the latest geothermal electricity tariffs set by the government, Calculation of the economic value of geothermal electricity rates using excel software using secondary data, It is necessary to adjust the tariff for geothermal electricity from 11.74 US$ cents/kWh to around 0.198 cents US$/kWh so that the price of geothermal electricity is in the range of 11.938 cents. IRR value that is smaller than the Discount Rate value of 10.36% indicates a high risk of loss to inflation or changes in the value of currency or goods, The benefits of this research for the world of education can be a reference for the geothermal economy in Indonesia, while in the industrial world it can be a reference for tariffs set by the government to see if the project is feasible to run.