See below for a discussion of rooftop solar and net metering.Private parties are also allowed to set up IPPs and to sell the electricity generated directly to end-users within a stipulated area. 30 of 2007 on Energy to cover nuclear, hydrogen, coal bed methane, liquefied coal and gasified coal. 6Indonesia Energy Outlook 2019. The selected developer enters into a waste management agreement with the local government and a PPA with PLN.Waste-to-energy projects are eligible for FiTs (as discussed below).Indonesian law establishes a tariff ceiling for renewable energy, which is set by reference to a percentage of PLN’s cost of generation for the prior year, including its own generation and the power procured from IPPs, but excluding the cost of electricity distribution. Details and instructions on how to disable those cookies are set out at Global Head of Infrastructure, Mining and Commodities The first was launched in October 2017 for developers of solar PV, hybrid energy, wind, biomass and biogas, municipal waste and tidal projects. The 2018 figures, published in April 2019, are used to determine the tariff ceilings for the period from April 1, 2019 to March 31, 2020. If the power supplied to the grid exceeds the imported energy in a month, any credit owing to the consumer is set-off against the consumer’s electricity bills in subsequent months within the same calendar quarter.Among other requirements, developers of rooftop solar projects must obtain prior approval from PLN for the system design and are subject to a cap on the installed capacity being 100 per cent of the consumer’s connected capacity based on the total capacity of the inverter.If industrial owners of rooftop solar installations wish to remain connected to the grid, they must pay parallel operation charges to PLN consisting of a connection charge, energy charge and a capacity charge, which is based on a minimum monthly take-or-pay obligation of 40 hours.IPPs are required to set up a limited liability company established under Indonesian law and domiciled in Indonesia.
Regulation 49 does not expressly apply to off-grid installations, but the MEMR has stated that Regulation 49’s requirements will apply to on and off-grid projects.PLN’s customers are permitted to install and operate rooftop solar projects for their own use and sell excess power generated to PLN on the basis of a net metering scheme, subject to a 35 per cent discount. As laid out in Indonesia’s National Energy Plan, the share of renewables are aimed to increase from 7% today to 23% in the country’s energy mix by 2025, and 31% by 2050. Indonesia will require nothing less than a policy overhaul—starting with its state-owned power utility—to meet the target of having 23 per cent of its electricity generated from hydro, solar and other renewable sources in 2025, according to a new report released last week.Unless Southeast Asia’s largest economy “radically changes” its roll-out of renewable energy, clean sources will only make up 12 per cent of the energy mix in 2025, said management consulting firm AT Kearney in its report titled Indonesia’s Energy Transition: A Case for Action. This means it would only achieve about half its target.There are four main barriers to renewable energy growth, but at the heart of the issue is that no single agency in Indonesia is accountable for the development of renewable energy, stated the report, done in partnership with the Employers’ Association of Indonesia, or Asosiasi Pengusaha Indonesia (APINDO), which has over 14,000 corporate members across the country.The government should make state-owned power utility PLN, or Perusahaan Listrik Negara, accountable for the deployment of renewable energy, argued the authors.We believe that with a new government in place, Indonesia is now well-positioned to drive a targeted initiative to take a fresh look at how it can accelerate the adoption of renewable energy for electricity generation, especially through the lens of new policies.As it stands, PLN may not be fully incentivised to boost the growth of renewables, the authors said. A feed-in tariff is a fixed amount paid to renewable energy producers for the power they export to the grid.Purchasing more renewable energy might require more subsidies, at least until scale is reached and lessons learnt, which would weaken PLN’s financial position, noted the report.And with PLN owning and operating more than half of the coal power plants in Indonesia, rapid renewable energy growth could pose a direct risk to these assets. That same year, the country invested US$1 billion in renewables, a fraction of the US$62 billion that AT Kearney estimated is needed annually between 2018 and 2025.Eco-Business graphic: Power generation in Indonesia by sector (TWh) in 2017. the Indonesian National Arbitration Centre (Traditionally, Indonesian IPPs had the benefit of a government support letter, but this is becoming increasingly difficult to obtain. Receive the latest news in sustainability, daily or weekly.EB Impact is a non-profit organisation focused on delivering training and programmes in Asia Pacific. The tariff is locked in once the PPA is signed and that rate will not be adjusted year on year.Tariffs for recent renewable projects have ranged between USD 8 – 11 cents/kWh.> 20MW determined based on the formula of 14.54 – (0.076 x capacity)MEMR Regulation No.
The size of the exploration commitment determines the winning bidder, who is entitled to receive a geothermal licence orWaste-to-energy projects may be procured by the governor or mayor of the following cities: DKI Jakarta, Tangerang, Bandung, Semarang, Surakarta, Surabaya, Makassar, South Tangerang, Bekasi, Denpasar, Palembang and Manado.