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Bali News and Views
  May . 2004

Published by Pt. Rasa Bali Murni

Ø  Editors "Real Estate News" in Bali Sun Newspaper.

Ø  Developers of Bali Golden Villas & BALI EMERALD VILLAS

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News & Views that you can use for profit or pleasure.

All of us at Bali Real Estate Agents wish all  mother's reading this addition a very happy Mother's Day . 

Bali obtains cheap, clean, source of power.

 One of the largest problems with developing resort areas throughout the world is the demand on local power supplies. 

  Bali appears to be a winner when it comes to future power supplies in that it has just opened a new power plant on the north coast of Bali.

 More important is the reopening of  geothermal wells  which fell in disuse following the Suharto downfall and crises . 

  One of the most attractive features of Bali is that most services and items are a fraction of what it costs at equivalent resort areas such as Hawaii .    

  The main reason is that  Indonesian is a major oil producer and generates  electricity through diesel generator plants utilizing relatively cheap fuel . 

  Bali relies on it's neighbor Island Java for its power supply.

This was a very big concern for  the Bali tourism and business sectors since it was unreliable and unable to meet Bali's demand . 

Since Bali falls within the "circle of fire" which means that it has active magna at it's base  it has an abundance geothermal activity which may be harnessed to produce cheap clean power . 

We're very happy to see that the government has approved the go ahead of development of these power sources and they will come online in the very near future . 

 This will mean that our power supply will become more reliable and remind inexpensive.

As  oil prices rise to $40.00 a barrel around the world  most Island resorts are wondering how they will keep prices of rooms and services down while the cost of their power is rising dramatically. Bali will be in the winner's seat . 

See below a recent article from Jakarta post documenting this historic event . 

Bali geothermal plant revived

Tony Hotland, Jakarta Post

A local company has revived a geothermal power plant project located in Bedugul, Bali, which was suspended by the government in 1997 following the regional financial crisis.

IB Ngurah Wijaya, the president of PT Bali Energy Limited (BEL), which has taken over management of the project, said on Sunday that the company would start running production tests on a geothermal well in the month and a half.

"We've seen indications of good results from the geothermal well. It is estimated to be able to produce seven to 10 megawatts (MW) of power," he was quoted by Antara.

Wijaya added that BEL would exploit the geothermal field in a cooperation contract with state-owned oil and gas firm PT Pertamina, under which the former would get 96 percent of profit and the latter 4 percent.

Once the plant comes into operation, the power will be sold to state electric company PT PLN.

"We'll keep the price below 5 U.S. cents per KwH (kilo watt per hour) ... similar to the price PLN pays when purchasing energy produced from hydropower plants, petroleum, natural gas, or coal generators," he said.

Located around 30 kilometers from Denpasar, the power plant will have four units. Unit 1 will start producing 10 MW of power in April, 2006; Unit 2 to produce 55 MW in June, 2003; Unit 3 produce 55 MW on June, 2009; and Unit 4 to produce 55 MW in 2010.

The government decided to continue the project in Bedugul last year after suspending it along with dozens of other power projects in 1998.

It was once owned by giant power company CalEnergy International of the United States, which later changed its name into MidAmerican Energy Holdings Co. In addition to Bedugul, the company also runs two other power plants, one in Patuha, West Java, and another in Dieng, Central Java.

The government had to pay hundreds of millions of dollars to the American firm in compensation for suspending the project.

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Past Newsletters

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Introducing BALI GOLDEN VILLAS II

 

Balinese Celebrate Very Important Ceremony

 

Are you better off than six months ago?

 

Jakarta Investors eager to buy Bali Real Estate

 

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