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In 2020, Indonesia will have another law about renewable energy tariffs. (Image via Forbes)
Jokowi to pass renewable energy law
Indonesia’s Ministry of Energy and Mineral Resources revealed that the renewable energy-generated power plant’s tariff regulation will be issued in the Q1 of 2020. Speaking on Wednesday, Director-General of Electricity under ESDM, Rida Mulyana, said that for now, the Indonesian government is still compiling the regulations that will come out as Presidential Regulation.Moreover, Rida explained that the new regulation regarding renewable energy tariff aims to enhance its portion of energy spreading. The new scheme proposed is the feed-in tariff, based on the production cost of renewable energy.
All along, the estimation of renewable energy-generated power plant’s tariff is made based on its regional generation basic cost determined by the state-owned PT PLN (Persero), as it is written in the Ministerial Regulation no. 50 of 2017 on Utilization of Renewable Energy Sources for Power.
However, the scheme was deemed ineffective as it cranks the electricity tariff; hence, the investors grow unwilling to invest in the development of renewable energy-generated power plants.
With the scheme excluding the regional electricity generation basic cost, Indonesia can improve the investment and attract the investors to invest more in the development of renewable energy-generated power plants.
Rida stated the optimism of the Indonesian government in the new tariff scheme, hoping it could crank up the renewable energy-generated power plant in the future.
Moreover, the Indonesian government also plans to award incentives for committed investors in the development of renewable energy-generated power plants. The policy might attract more investors and accelerate the return of capital (RoC). Once the RoC has finished, PLN will take over the project.
Source: https://bit.ly/3846vK2
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