Govt issues two regulations to speed up power projects
Tuesday, January 13 2015 - 11:48 AM WIB
Minister of Energy and Mineral Resources (MEMR) Sudirman Said has issued two regulations to speed up the development of power projects.
The two regulations are MEMR Decree No.74K/21/MEM/2015 on the Endorsement of the Electrical Power Provision Plan of PT PLN (Persero) for Year 2015-2024; MEMR Regulation No. 3/2015 on Procedures for the Purchasing by PT PLN Persero of Electrical Power from mine mouth PLTU (coal fired power plant), PLTU, PLTG/PLTMG (gas turbine power plant/gas engine power plant), PLTA (hydropower plant) through Direct Appointment.
?(Both regulations) aim to push (the development of) power plant projects, particularly the 35,000 MW program,? Sudirman said during a press conference organized by the Forum of Power Industry Leaders on Tuesday.
According to Sudirman, the two regulations will make it easier for PLN to procure goods and gives its flexibility in setting its purchasing price for power from Independent Power Producers (IPP) without prior consent from the MEMR minister.
?We have agreed on the range of selling and purchasing price of power (to be produced by IPP). Thus, PLN does not need to come to the minister for approval as long as the price is within the price range. This will expedite the process,? Sudirman said.
Of the 35,000 MW power plants to be built over the next several years, 10,000 MW will be built by PLN itself. The rest will be offered to IPP.
?This does not include PLN?s 7,000 MW power projects which are on the pipeline,? he said.
He also said he had formed a task force called Working Unit for the Implementation of National Electricity Development Program (UP3KN) to help speed up the development of 35,000 MW power projects. The task force is particularly assigned to overcome all problems that have been hindering the efforts to provide electricity in the country.
In order that the task force to become effective, Sudirman has appointed former PLN?s President Director Nur Pamudji and Agung Wicaksono as the coordinators of UP3KN. Agung is a former member of the now-defunct Presidential Working Unit for the Supervision and Management of Development (UKP4), a special powerful agency created by former President Susilo Bamang Yudhoyono to help his administration.
?Besides, we are forming (a task force called) Independent Procurement Agent (IPA) and are proposing (to President Joko Widodo) the formation of a National Team for Electricity Development,? Sudirman said, adding that a presidential decree and several special laws (lex specials) will be issued to support the national team and strengthen the legality of its existence.
Editing by Johannes Simbolon