97 investors asks license to build hydropower plant

A total of 97 investors have applied for license to build hydropower plants since the Ministry of Energy and Mineral Resources (MEMR) issued the MEMR Decree No. 12/2014 on the Purchasing of Power from Hydropwer plants by PT Perusahaan Listrik Negara (PLN).

Of the 97 investors, 41 have received licenses to develop hydropower plants, consisting of five new business entitites, 26 business entities which are ?in transition period but are still in the phase of financing and construction?, and 10 business entities which have been operating but ?are in transition period,? the Directorate General of New, Renewable Energies and Energy Efficiency (EBTKE) said in a statement Wednesday.

The remaining 56 investors are still in the process of completing documents as requirements to obtain the license, EBTKE said

It further said none of them is complaining about PLN?s purchasing price of hydropower.

Under the MEMR Decree No. 12/2014, investors who want to develop hydropower plants with a capacity of less than 10 MW should apply ?license to use hydropower to generate electricity? from EBTKE. PLN is 0bligated to buy power from such power plants.

The decree also specifies the purchasing prices of PLN for power from the <10MW hydropower plant. The prices vary depending on the capacity of the power plant and locations. For example, for power plants with up to 10 MW capacity located in Java, Bali and Madura, the purchasing price of PLN is Rp 1,075 kWh in the first eight years and Rp 750 per kWh from the ninth through twelfth year. The purchasing prices are higher for power plants located elsewhere. PLN?s purchasing price is also higher for power plants with a capacity of up to 250 kWh.

Editing by Johannes Simbolon