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llustration of solar power plants (PLTS). (BETWEEN PHOTOS / Widodo S Jusuf).
Lower Investment Costs, Ministry of EMR Built Solar Power Center on State Land
Jakarta, Indonesia - It is reported that to reduce the cost of Solar Power Center (PLTS) investment, The Ministry of Energy and Mineral Resources (ESDM) in cooperation with the State Asset Management Agency (LMAN) are doing an agreement regarding land use for the construction of solar power plants. Through this agreement, the selling price of electricity from PLTS can reach USD 0.06 per Kilowatt-hour (KWh), or lower than the national Generating Cost (BPP) of USD 0.07 per KWh and saving a lot of cost.According to the source, through this cooperation, private electricity developers are welcome to build solar power plants on land managed by the State Asset Management Agency, so that later developers will only pay rent each year with affordable land cost.
It is reported that, not only more efficient, the construction of PLTS on the State Asset Management Agency's land is certainly more effective because even the generators built by private developers will be taken care by the government eventually.
According to Director General of Renewable New Energy and Energy Conservation Ministry, FX Sutijastoto, this step will certainly make the best investment of private electricity developers more efficient as they do not need to pay the cost of clearing land. Moreover, the land needed by the PLTS is quite large and sometimes it takes a long time for its release so they can use it for a longer period.
However, the construction of PLTS that uses the State Budget is only able to install 217.23 MW with a gap of 5,274.77 MW which needs to be utilized soon. Sutijastoto said that they still have a lot of things to do to attract players into EBT plants. With that, not only in terms of investment costs, maybe in the future Indonesia also needs funding interest that is quite competitive in developing the new and renewable energy.
Source: https://www.cnnindonesia.com/ekonomi/20190724211750-85-415246/demi-tarif-listrik-murah-esdm-bangun-plts-di-lahan-negara
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