Special agency planned to purchase electricity from new energy sources
Monday, November 16 2015 - 02:27 AM WIB
The government is drafting a regulation to set up a special agency tasked with purchasing electricity from power plants fueled by new and renewable energy sources in a bid to help accelerate investment in the sector, Director General of New and Renewable Energy Rida Mulyana said.
Rida said that the special agency will purchase the electricity based on the new feed in tariff and re-sell it to state-owned electricity firm PLN at lower price. The price difference will be covered by the government.
He said that PLN has been reluctant to buy electricity from new and renewable sources due to the high price.
He pointed out for example that currently there are 171 power purchase agreements on electricity produced by micro hydro power plant projects which have yet to be signed by PLN. (*)