Country:Indonesia
Year:2016 (Jul 19th)
Policy status:In Force
Jurisdiction:National
Date Effective:2016 (Jul 19th)
Policy Type:Economic Instruments, Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums
Policy Target:Solar, Solar>Solar photovoltaic
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Agency:Ministry of Energy and Mineral Resources (MEMR)
URL:http://jdih.esdm.go.id/peraturan/Permen%20ESDM%20No.%2019%20Tahun%202016.pdf (Indonesian)
URL:http://www.solarplaza.com/channels/markets/11591/new-government-decree-accelerate-indonesian-solar-market/
Legal References:Ministry of Energy and Mineral Resources (MEMR) Regulation No. 19/2016
Penalty:Penalties for late project completion are valid, if the Commercial Operation Date (COD) is only attained later than after 12 months for projects <10MW and later than after 24 months for projects >10MW.
Description:

The Feed-in Tariff (FiT) policy introduced in July 2016, after the 2013 solar auction programme was unconstitutional by the Supreme Court. The FIT regulation targets development of 250 MW of PV capacity in 22 provinces. FiTs are granted for period of 20 years in the range of USD 0.145-0.25/kWh and vary by regions.

Preconditions for the FIT:

  • A capacity quota of 250MW is the eligible maximum under the FiT, while an implementation timeline is not provided.
  • Largest quota is in Java at 150 MW and the smallest quota is 2.5 MW in Papua/West Papua combined provinces
  • There is a maximum limit of project size per developer based on the available quota in the region: 
  • Quota above 100 MW, the limit for developers is 20 MW
  • Quota between 10-100 MW, the limit for developers is 20% of the quota 
  • Quota below 10 MW, there’s no limit

Local content on the project is required (43.8%), subject to the minimum based on the Ministry of Trade and Industry’s regulations. If the requirement is not reached, the FiT will be reduced by the same percentage. For example, if a project only meets 60% of local content requirements, the FiT will be lowered by 40%.

Penalties for late completion are given, if the Commercial Operation Date (COD) is attained later than after 12 months for projects < 10MW and later than after 24 months for projects >10MW.

Related Documents:

In order to view a full versions of FIT for solar PV regulations for Indonesia please go here and for the summary by SolarPlaza please go here.

Last modified: Mon, 21 Aug 2017 15:30:37 CEST