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PLN eyes 60% private role in renewable developments
Darmawan said that the company would ensure a fair return on investment, while also stressing that all risk must be identified and managed effectively.
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Power of cooperation: Hilly terrain forms a backdrop on Nov. 9, 2023 to the Cirata Floating Solar Power Plant at Cirata Reservoir in Purwakarta, West Java, the largest energy facility of its kind in Southeast Asia, which was developed jointly by the Indonesian government and Abu Dhabi-owned renewable company Masdar. (AFP/Bay Ismoyo)
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tate-owned electricity utility PLN wants local private entities to play a major role in developing the country’s renewable energy plants.
PLN president director Darmawan Prasodjo said the company could not do the work by itself and vowed to improve the investment environment to attract investors.
“In our future plans, 60 percent of power plants will be based on private investments cooperating with technology providers and international financing,” Darmawan said on Monday, as reported by detikfinance.
Darmawan went on to say that the company would ensure a fair return on investment, while also stressing that all risk must be identified and managed effectively.
The projects in the ecosystem must also be technically feasible and commercially viable, he added, acknowledging that if the rate of return fell below the cost of funding, then “it is better to keep the money under the pillow”.
“If the rate of return is 40 percent, it is too high. It should be fair, a win-win [solution] that will be beneficial to the country and the nation’s development,” he added, as reported by CNBC Indonesia.
Read also: Rules still stacked against renewables as Jokowi era draws to close
