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Jakarta Post

PLN seals deal with 53 renewable developers

  • Viriya P. Singgih

    The Jakarta Post

Jakarta   /   Wed, August 2, 2017   /   06:16 pm
PLN seals deal with 53 renewable developers President Joko “Jokowi” Widodo inspects the Daruba solar photovoltaic power plant in Juanga village, South Morotai, Maluku, in this file photo taken in December last year. (Antara/Yudhi Mahatma)

State electricity company PT Perusahaan Listrik Negara (PLN) signed power purchase agreements (PPAs) with dozens of developers on Wednesday to build 53 renewable power facilities across the country, an event marked with the pulling out of a number of IPPs for other 11 renewable projects.

PLN was initially scheduled to seal the deal for 64 renewable projects with a combined capacity of around 380 MW. The projects comprise of 49 mini-hydro power plants, six solar-powered plants, five biogas-fuelled plants and four biomass-fuelled plants, each with a capacity of 10 MW or less.

However, IPPs of 11 mini-hydro power plants, with a capacity of around 5 MW each, decided to pull out from the agreements as they demanded the government to review the electricity prices set in the PPAs once again.

“We have yet to receive formal notices from those IPPs that want to pull out from these projects,” PLN strategic procurement director Nicke Widyawati said.

“However, we already have a long negotiation with those IPPs to set the prices of electricity that will be sold to PLN. We have also signed MoU with them.”

The electricity prices of the 49 mini-hydro power plants range from 6.54 to 7.89 US cents per kilowatt hour (kWh), in accordance to the Energy and Mineral Resources Ministerial Decree No. 12/2017 that caps electricity rates from renewable sources, except geothermal and waste, at 85 percent of the local electricity supply costs (BPP) if they exceed the national average.

However, on July 19, the ministry amended the rule by passing Decree No. 43/2017 that exempts hydroelectric plants from the 85 percent cap.