Renewable Energy Purchase Policy 2017

Source: IEA/IRENA Renewables Policies Database
Last updated: 22 August 2017

The Decree of the Minister of Energy and Mineral Resources (MEMR) of January 2017, regulates electricity purchase from various renewable technologies by the national utility (Perusahaan Listrik Negara, PLN). The regulation applies to solar, wind, biomass, biogas, geothermal and hydro power.

  • The national utility (PLN) will pay the renewable projects according to their generation costs with a cap at 85% of the cost, if regional generation costs exceed the national average. Projects sized under 10 MW are 'must-run' sources (i.e. prioritised grid access).
  • Solar and wind projects will be paid through tenders based on capacity, with other renewable technologies can be awarded through reference tariff or directly. 
  • PLN is obliged by the Ministry of Energy and Mineral Resources (MEMR) to draft Power Purchase Agreement (PPA) templates for different renewable sources. 
  • No clear timeline exists for installing a given capacity of renewable sources.

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