Indonesia plans carbon tax, geothermal push  

The SMH has an article on a proposal for Indonesia to dramataically increase the use of geothermal power, one of the key elemenets in the Desertec Asia plan - Indonesia plans carbon tax, geothermal push.

AS AUSTRALIA battles over an emissions trading scheme, Indonesia is set to release its draft climate change policy, which would establish a carbon tax, set up geothermal energy projects and protect forests.

The potential carbon tax, part of Indonesia's ''green paper'' on climate change, would apply to the combustion of fossil fuels and start at $9 a tonne of carbon dioxide, rising 5 per cent in real terms per year until 2020.

The tax could be coupled with cuts to subsidies for coal and oil-generated power, in an attempt to promote clean energy in the one of the world's fastest-growing economies. ...

Indonesia will also develop a detailed plan to tap the country's huge geothermal potential - which represents 40 per cent of the world's hot-rock resources. The geothermal strategy is aimed at partially offsetting a 7 per cent increase in energy demand every year.

The plan includes a geothermal tariff, in which the Government subsidises the purchase of clean energy by electricity retailers.