Investors lack interest in micro hydro projects
Monday, February 11 2019 - 02:17 AM WIB
Private investors are not interested in new opportunities provided by the Ministry of Public Works and People?s Housing (PUPR) to develop micro hydro power plants at state-owned water dam facilities through public private partnership scheme.
News portal bisnis.com quoted Chairman of the Hydro Power Plant Developers Association, Riza Husni as saying that unfavorable regulations are turning away private investors from such projects.
He pointed out that although the investors may have won tender held by the PUPR, they will still have to participate in separate tender held by the state-owned electricity firm PT PLN for micro hydro power plant projects, which may not necessarily be won by the investors appointed by the PUPR, thus creating uncertainty for investors.
He said that Minister of Energy and Mineral Resources (MEMR) Regulation No 50/2017 is creating obstacles for investors in participating in such projects. ?I feel that the government is yet to be friendly to the renewables sector,? he said.
Faby Tumiwa, Executive Director for the Institute for Essential Service Reform (IESR) confirmed that unfavorable regulations have hampered investment in the renewables sector.
He pointed out that MEMR Regulation No. 10/2017, No. 50/2017, and No No. 49/2018 have failed to provide investment certainty in the renewables sector.
"The power purchase agreement is not bankable, especially for power plants with capacity of less than 10 MW," he said. (*)