Energy ministry to issue pricing regulation for BESS-based hybrid power plants

The Ministry of Energy and Mineral Resources is finalizing a ministerial decree that will set electricity pricing for hybrid power plants that incorporate battery energy storage systems, according to the Directorate General of New and Renewable Energy and Energy Conservation.

Director General Eniya Listiani Dewi said the regulation is nearing completion and will establish tariff guidelines for hybrid generation systems that combine variable renewable energy sources such as solar and wind with battery storage.

The pricing framework will also accommodate hybrid configurations that include hydrogen as part of the generation mix. The decree is a technical follow up to Energy Ministry Regulation No. 19 of 2024 on hybrid power systems.

The ministry said the policy is intended to support broader use of intermittent renewable energy by providing storage solutions that help stabilize power supply. It is also expected to support the government’s program to replace diesel based generation in remote and underdeveloped regions where fuel logistics costs are high.

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The planned tariff structure will primarily apply to smaller scale hybrid plants with capacity below 10 megawatts. With a defined pricing mechanism, developers will be able to assess project feasibility before selling electricity to state electricity firm PT PLN (Persero).

Eniya said hydrogen based hybrid systems could be deployed where electricity produced from hydrogen is cheaper than diesel generation in specific locations. The regulation is also expected to provide a foundation for expanding hydrogen related projects.

The ministry expects the pricing policy to improve investment certainty, support the development of hybrid renewable energy projects, and accelerate the transition toward lower carbon power generation.

Editing by Alexander Ginting