Indonesia: PLN sees 18 renewable projects delayed amid price dispute

Indonesia: PLN sees 18 renewable projects delayed amid price dispute

State-owned electricity firm PLN has confirmed that it has only been able to
sign power purchase agreements (PPAs) for 46 renewable energy projects with
a total capacity of 257.62 megawatts on Wednesday instead of the previously
stated figure of 53 projects, as more companies decided to pull out.

PLN was initially scheduled to seal deals for 64 renewable projects with a
combined capacity of around 380 MW.

However, prospective developers of 17 mini hydropower plants and one biogas
plant decided to pull out from the agreements in what appears to be
disagreement over the electricity prices set in the PPAs.

Read also: PLN seals deal with 53 renewable developers
"It doesn't mean that the 18 projects have been cancelled. Maybe it's just
because the developers weren't able to attend the event yesterday," PLN
renewable energy division head Tohari Hadiat told The Jakarta Post on
Thursday.

"We're still trying to find out what the real problem is."

Previously, some developers had demanded the government review the
electricity prices set in the PPAs, which are calculated in accordance with
Energy and Mineral Resources Minister Decree No. 12/2017.

The decree 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.

PLN still uses the decree as a reference, even though the ministry has
amended it by passing Decree No. 43/2017, which exempts hydroelectric power
plants from the 85 percent cap.

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Link to Original Article:
http://www.thejakartapost.com/news/2017/08/04/pln-sees-18-renewable-projects
-delayed-amid-price-dispute.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com