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. Key requirements of such projects include an electricity supply business permit, an operational license (Indonesia favours an auction process with a tariff ceiling.

Consumers wishing to do this need to comply with prevailing regulation and will need approval from PLN. 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. In a time of increasingly complex competitive pricing online, a decision by Justice Davies of the Federal Court of Australia could have significant implications for the way retailers employ digital pricing tactics.Subscribe and stay up to date with the latest legal news, information and events...We use cookies to deliver our online services.

49 of 2018 (Regulation 49) regulates the development, ownership and operation of on-grid capture solar generating facilities.

Key exceptions to this risk allocation areIn general, PLN pays deemed dispatch payments if PLN is unable to accept energy due to natural force majeure affecting PLN’s grid or other grid damage events (subject to a specified grace period) or where political force majeure affects the IPP’s ability to deliver energy.

The process of land acquisition can often be one of the longest lead items in the development of an Indonesian power project.The number of permits and licenses to be obtained from various authorities, including from the central and the local governments, are onerous. PLN generally expects developers to acquire all of the land needed for the plant site and the transmission lines needed to connect the plant to the nearest substation. Source: ClimatescopeCoal mining groups in Indonesia receive sizeable government support in the form of loan guarantees, tax exemptions and other fiscal support, said the report. Indonesia is targeting that 23 per cent of electricity will be generated from renewable energy sources by 2025. These are explained below.With the exception of geothermal and waste-to-energy projects, all renewable projects must be procured by PLN through a “Direct Selection” process, which is a limited tender process involving at least two bidders drawn from a pre-qualified list.During the pre-qualification phase, developers are invited to join a “List of Selected Providers” (PLN has concluded two pre-qualification processes so far. As a general rule, an Indonesian limited liability company must have at least two shareholders.Foreign shareholding restrictions apply under Indonesia’s current Negative Investment List as follows>10 MW up to 95 per cent foreign ownership or 100 per cent foreign-owned if the project is procured under the Public Private Partnership (PPP) scheme. 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. As stated in Government 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. In the “Indonesia should transition to renewable energy because it is the wise thing to do,” said Silvius, the institute’s Indonesia representative. 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. PLN and lenders generally expect this land to be obtained and appropriate legal rights over that land to be granted by the financial closing date. Hydro accounts for 7.17 per cent of the total electricity generation (approximately 4,010 MW), with geothermal responsible for another 3.48 per cent (1,948.5 MW).Consumers are allowed to own and operate power generation facilities for their own use and may sell any excess power to PLN. Potential projects are procured by way of public tender under the government procurement rules or PPP rules. 79 of 2014 on National Energy Policy, new and renewable energy mix target is at least 23% by 2025 and 31% by 2050. Prior to the commercial operation date, transfer of shares in a non-geothermal IPP is restricted, except to a 90 per cent owned affiliate of the sponsor established in Indonesia. Projects are procured under differing methods, according to the renewable energy source/technology. 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. “New Energy” is defined under Law No. This is referred to as the Cost of Generation or the Indonesian acronym, BPP.