Energy and Mineral Resources Minister Ignasius Jonan witnessed the signing of the PPA on EBT between PT PLN and IPPs in 46 locations, with a total capacity of 257.62 MW.

PLN planning director Nicke Widyawati disclosed that of the 257.62 MW produced under the PPA, 175.80 MW will be produced by 32 PPA PLTM scattered across Java and Sumatra; 36.872 MW by 4 PPA PLTBm and 4 PPA PLTBg in Sumatra region and 45 MW by 6 PPA PLTS, of which 25 MW will be in two locations in Sulawesi and the remaining 20 MW in four locations, namely Java’s eastern regions, Bali and Nusa Tenggara.

According to Nicke, the electricity procurement development started last year. The rate has been agreed to and approved by the Energy and Mineral Resources Ministry, which means the procurement process has been completed, with the PPA ready to be signed.

She revealed that the rate of electricity purchase of small-scale EBTs, which includes those utilized to generate solar power plants, geothermal power plants and biogas power plants, have a capacity of 10 MW in compliance with the Energy and Mineral Resources Ministerial Decree  No. 5827/23/MEM.I/2017, dated July 28, 2017.

The approval of the electricity sale rate of solar power plants in six locations is in compliance with the Energy and Mineral Resources Ministerial Decree No. 5590/26/MEM.E/2017, dated July 20, 2017.

Minister Ignasius Jonan emphasized in his address the importance of optimum utilization of EBT.

He also asserted the importance of keeping the electricity purchasing power low to ensure that the public could access electricity at an affordable rate.

Nicke was of Minister Ignasius Jonan’s view, saying the signing was evidence of PLN’s commitment to producers to increase the utilization of EBT in order to reach the targeted 23 percent of the nation’s energy mix by 2025.

“What is more important is that the PPA has fulfilled the electricity needs of a number of regions with an isolated system at a competitive rate, in parallel with LN’s commitment to keep electricity at an affordable rate for all layers of society and industries,” she said.

Under the PLN electricity system, 6,200 MW produced by EBT power plants are currently in operation, 12 percent of the total capacity of 52,000 MW.

Under PLN's electricity procurement business plan (RUPTL) for 2017-2026, the company will develop additional power plants with a capacity of 77.9 GW. The plans are as follows:

• Optimizing the development EBT, not only in terms of balancing between supply and demand, but also in preparing the electricity network system and keeping the price competitive.
• Utilizing renewable energy sources from hydro energy, geothermal (including small scale/modular), biofuel, wind, solar, biomass and waste, etc. Meanwhile, PLN also supports attempts to integrate EBT development into industrial estates (RE-BID).
• Special for photovoltaic (PV), PLN will develop centralized PV to electrify remote regions relatively far from the existing grid. The regions that have lagged behind, border areas and the outermost islands. That’s why efforts will be made to develop hybrid power (PV, RE, and Diesel, etc) in regions where electricity is operated less than 12 hours, commonly found in Indonesia’s eastern regions.
• Developing a Smart Grid system to enhance the penetration of RE intermittent (PV and wind) and also boost its reliability. Thus, PLN will also develop micro networks (commonly using PV) for areas where distribution networks will not be developed in the coming 2-3 years.
• Reducing the consumption of fuels that use HSD and MFO and drive the use of biofuel.
• Optimizing the development of EBT with big potential such as geothermal power plants (PLTP) and hydro power plants (PLTA).
• Maximizing local EBT potential to increase the electricity ratio in Indonesia’s eastern regions.
• Developing hybrid system in regions that have received electricity supply from regional power companies (PLTD) with electricity operated less than 12 hours per day.

“The signing of the PPA has demonstrated PLN’s commitment to continue to increase the utilization of EBT in efforts to enhance the electricity ratio and to see more villages have access to electricity so that the targeted electricity ratio of 98 percent in 2019 and the targeted EBT portion of 23 percent of the national electricity mix by 2025 can be achieved,” Nicke concluded.

Popular

Start-up scandals in 2025 force investors to raise the bar, change playbooks

Indonesia may face rising instability in 2026: CSIS

Interfaith group comes out against abolishing direct regional elections