New tariffs for renewable energy production introduced

Friday, February 10 2012 - 06:50 AM WIB

By Bernard Loebs

The government has issued a regulation on new feed in tariff (FIT) scheme in small and medium scale renewable energy production to help promote investment.

The Energy and Mineral Resources Minister Decree No.4/2012, dated January 31, 2012 also regulates the price scheme for the purchase by state utility firm PT Perusahaan Listrik Negara (PLN) of excess electricity from central and regional govrnment-owned companies, cooperatives and communities.

Under the regulation, PLN must purchase the power at the price of Rp656/kWh (if connected to medium voltage interconnection) and Rp 1,004/kWh (low voltage), before multiplying it with location-weighting factor, symbolized by F. F is 1 for Java and Bali; 1.2 for Sumatra and Sulawesi; 1.3 for Kalimantan, West Nusa Tenggara and East Nusa Tenggara; 1.5 for Maluku and Papua.

The purchasing prices for biomass and biogas?based electricity production are set at Rp 975/kWh (medium voltage interconnection) and Rp 1,325/kWh (low voltage), thus multiplying it with the F symbol. F is 1 for Java, Bali, Madura and Sumatra; 1.2 for Sulawesi, Kalimantan, East Nusa Tenggara and West Nusa Tenggara; 1.3 for Maluku and Papua.

For waste power plants (zero waste), the prices are set at Rp 1,050/kWh (medium voltage) and Rp 1,398/kWh (low voltage), while for waste power plants using landfill sanitary technology (landfill) the prices stand Rp850/kWh (medium voltage) and Rp1,198/kWh.

The regulation is the revised version of Energy and Mineral Resources Minister Decree No. 31/2009 on the price of electricity purchased by state electricity company PLN from small and medium scale power producers.

Editing by Dadan Wijaksana

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