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Govt revives power wheeling proposal in renewable energy bill
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Energy and Mineral Resources Minister Arifin Tasrif speaks during the Group of 20 Energy Transitions Ministerial meeting in Nusa Dua, Bali, on Sept. 2, 2022. (AFP/Made Nagi)
T
he Energy and Mineral Resources Ministry has revived a proposal that would allow private companies to sell electricity directly to the consumer through transmission owned by state-run utility firm PLN, which it hopes to include in the latest draft of the renewable energy bill.
The scheme, called power wheeling, had previously been omitted from the draft law following opposition from other ministries.
The Finance Ministry, for instance, argued that the mechanism could cause electricity prices to fluctuate due to market forces, thus it may not be affordable for the public. Others feared PLN may bear the loss as it faces an electricity oversupply problem.
According to energy minister Arifin Tasrif, the new draft would include the obligation of an operating area holder to fulfill consumer demand for renewable-based electricity.
Other companies could act as an alternative supplier and make a point-to-point agreement with the consumer if the area operator could not fulfill it.
"The transmission operator should open the access for renewable electricity transfer, based on the price set by the government," Arifin told lawmakers of the House of Representatives Commission VII, which oversees energy and minerals, on Monday.
Arifin went on to say that it would be hard for the country to achieve the renewable electricity target if it only depended on a single supplier, which is PLN.
