New regulation planned to force IPPs to quickly produce electricity
Wednesday, January 4 2017 - 03:23 AM WIB
Petromindo
The Ministry of Energy and Mineral Resources is drafting a new regulation aimed to force independent power producers (IPPs) to quickly start producing electricity once their power plant projects have been completed and reached commercial operation date (COD) stage, Kontan reported on Wednesday.
The paper quoted ministry Director General of Electricity Jarman as saying that the requirement will be included in new power purchase agreements (PPA) signed by the IPPs and state-owned electricity firm PT PLN.
He said that under the new regulation, IPPs failing to immediately produce electricity once their power plant projects have reached the COD stage will be given penalty. If the power plants fail to performer properly, the IPPs will also be given sanction.
PLN Spokesman I Made Suprateka said that there been not a single power plant project which has reached COD stage failing to produce electricity. But, he acknowledged that in some cases, the IPPs failed to perform fully in accordance with the PPA. For instance, based on PPA, an IPP must produce 1,000 MW, but the realized output was only 900 MW. He declined to disclose the name of the IPPs failing to perform in accordance with the PPA. (*)