Indonesia: Boosting utilization of EBT, PLN signs PPA with IPPs in 46 scattered locations

Indonesia: Boosting utilization of EBT, PLN signs PPA with IPPs in 46
scattered locations

The development of new and renewable energy (EBT) in Indonesia has been
moved forward, with a power purchase agreement (PPA) signed in Jakarta
yesterday between state electricity company PT PLN and independent power
producers (IPP) scattered across Sumatera, Java, Sulawesi and Nusa Tenggara.

Energy and Mineral Resources Minister Ignasius Jonan witnessed the signing
of the PPA on EBT between PT PLN and IPPs in 46 locations, with a total
capacity of 257.62 MW.

PLN planning director Nicke Widyawati disclosed that of the 257.62 MW
produced under the PPA, 175.80 MW will be produced by 32 PPA PLTM scattered
across Java and Sumatra; 36.872 MW by 4 PPA PLTBm and 4 PPA PLTBg in Sumatra
region and 45 MW by 6 PPA PLTS, of which 25 MW will be in two locations in
Sulawesi and the remaining 20 MW in four locations, namely Java's eastern
regions, Bali and Nusa Tenggara.

According to Nicke, the electricity procurement development started last
year. The rate has been agreed to and approved by the Energy and Mineral
Resources Ministry, which means the procurement process has been completed,
with the PPA ready to be signed.

She revealed that the rate of electricity purchase of small-scale EBTs,
which includes those utilized to generate solar power plants, geothermal
power plants and biogas power plants, have a capacity of 10 MW in compliance
with the Energy and Mineral Resources Ministerial Decree No.
5827/23/MEM.I/2017, dated July 28, 2017.

The approval of the electricity sale rate of solar power plants in six
locations is in compliance with the Energy and Mineral Resources Ministerial
Decree No. 5590/26/MEM.E/2017, dated July 20, 2017.

Minister Ignasius Jonan emphasized in his address the importance of optimum
utilization of EBT.

He also asserted the importance of keeping the electricity purchasing power
low to ensure that the public could access electricity at an affordable
rate.

Nicke was of Minister Ignasius Jonan's view, saying the signing was evidence
of PLN's commitment to producers to increase the utilization of EBT in order
to reach the targeted 23 percent of the nation's energy mix by 2025.

"What is more important is that the PPA has fulfilled the electricity needs
of a number of regions with an isolated system at a competitive rate, in
parallel with LN's commitment to keep electricity at an affordable rate for
all layers of society and industries," she said.

Under the PLN electricity system, 6,200 MW produced by EBT power plants are
currently in operation, 12 percent of the total capacity of 52,000 MW.

Under PLN's electricity procurement business plan (RUPTL) for 2017-2026, the
company will develop additional power plants with a capacity of 77.9 GW. The
plans are as follows:

Optimizing the development EBT, not only in terms of balancing between
supply and demand, but also in preparing the electricity network system and
keeping the price competitive.

Utilizing renewable energy sources from hydro energy, geothermal (including
small scale/modular), biofuel, wind, solar, biomass and waste, etc.
Meanwhile, PLN also supports attempts to integrate EBT development into
industrial estates (RE-BID).

Special for photovoltaic (PV), PLN will develop centralized PV to electrify
remote regions relatively far from the existing grid. The regions that have
lagged behind, border areas and the outermost islands. That's why efforts
will be made to develop hybrid power (PV, RE, and Diesel, etc) in regions
where electricity is operated less than 12 hours, commonly found in
Indonesia's eastern regions.

Developing a Smart Grid system to enhance the penetration of RE intermittent
(PV and wind) and also boost its reliability. Thus, PLN will also develop
micro networks (commonly using PV) for areas where distribution networks
will not be developed in the coming 2-3 years.

Reducing the consumption of fuels that use HSD and MFO and drive the use of
biofuel.

Optimizing the development of EBT with big potential such as geothermal
power plants (PLTP) and hydro power plants (PLTA).
Maximizing local EBT potential to increase the electricity ratio in
Indonesia's eastern regions.

Developing hybrid system in regions that have received electricity supply
from regional power companies (PLTD) with electricity operated less than 12
hours per day.

"The signing of the PPA has demonstrated PLN's commitment to continue to
increase the utilization of EBT in efforts to enhance the electricity ratio
and to see more villages have access to electricity so that the targeted
electricity ratio of 98 percent in 2019 and the targeted EBT portion of 23
percent of the national electricity mix by 2025 can be achieved," Nicke
concluded.

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Link to Original Article:
http://www.thejakartapost.com/adv/2017/08/03/boosting-utilization-of-ebt-pln
-signs-ppa-with-ipps-in-46-scattered-locations.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com