New Rules, These Are the Prices of Renewable Energy Electricity in Indonesia

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Adi Ahdiat 15/09/2022 15:20 WIB

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The Indonesian government recently issued Presidential Regulation No. 112 of 2022, which, among other things, regulates the electricity purchasing price from renewable energy power plants. Details ar

Maximum Price Benchmark for Electricity Purchases from Government-Owned Renewable Energy Power Plants (2022)

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New Rules, These Are the Prices of Renewable Energy Electricity in Indonesia

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Maximum Price Benchmark for Electricity Purchases from Government-Owned Renewable Energy Power Plants (2022)

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The Indonesian government recently issued Presidential Regulation (Perpres) No. 112 of 2022 concerning the Acceleration of Renewable Energy Development for Electricity Provision on Tuesday (September 13, 2022).

Besides reducing greenhouse gas emissions, this Perpres also aims to attract investment.

"To increase investment and accelerate the achievement of renewable energy targets in the national energy mix in accordance with the National Energy Policy and the reduction of greenhouse gas emissions," the Perpres explains.

Perpres No. 112 of 2022 regulates many things, one of which concerns the purchase price of electricity by PT PLN from various types of renewable energy power plants.

The price of renewable energy electricity is set at varying amounts, depending on the type of energy source and the location of the power plant.

Price benchmarks are also influenced by the ownership status of the power plant, whether it is fully built by the private sector, a joint venture between the government and the private sector, or fully owned by the government.

The following are the highest price benchmarks for the purchase of electricity from renewable energy power plants fully built by the government (including from grant funds):

* Hydroelectric Power Plant (PLTA): US$3.76 cents/kWh
* Solar Power Plant (PLTS) Photovoltaic: US$5.63 cents/kWh
* Wind Power Plant (PLTB): US$5.63 cents/kWh
* Biomass Power Plant (PLTBm): US$9.29 cents/kWh
* Biogas Power Plant (PLTBg): US$7.44 cents/kWh

"The purchase price of electricity as referred to will be evaluated annually since this Presidential Regulation comes into effect, considering the latest average contract price of PT PLN (Persero)," the Perpres explains.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."