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Govt to include power wheeling in renewable energy bill
The government removed articles on power wheeling from the bill in November 2022, but later revived the plan in November last year.
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A technician from state electricity company PLN stands atop a transmission tower during regular maintenance work on Dec. 27, 2023, in Palu, Central Sulawesi. (Antara/Basri Marzuki)
T
he government will include power wheeling in its renewable energy bill, which would allow private companies to sell electricity directly to the consumer through transmission owned by state-run utility firm PLN.
The Energy and Mineral Resources Ministry’s New and Renewable Energy Director General Eniya Listiani Dewi said on Thursday that the ministry was in the process of formulating the rules on pricing and terms and conditions of using PLN transmission to distribute renewable electricity.
“We will include [stipulations] on network rental, etc., which are already stipulated in the electricity law,” she said, as quoted from Bisnis.
The government removed articles on power wheeling from the bill in November 2022, but later revived the plan in November last year.
Current rules require electricity produced by independent power producers (IPPs) to be sold to PLN for distribution under the state-run monopoly, which involves terms that can limit the economic viability of clean energy projects.
Read also: Govt revives power wheeling proposal in renewable energy bill
Despite its legality, power wheeling has not been implemented in Indonesia because of restrictive regulations and the complexity it creates for PLN, especially in performing economic dispatch, according to think tank Tenggara Strategics, which is affiliated with The Jakarta Post, in February.
