Team set up to formulate feed-in tariff for renewable power projects

By Godang Sitompul

Petromindo|Lucky

The Ministry of Energy and Mineral Resources has set up a team assigned to accelerate the formulation of new policy on the electricity feed-in tariff for renewables-based power plant projects in the country.

Director General of New and Renewable Energy at the ministry Rida Mulyana told Petromindo.com on Tuesday that the team will be under the joint coordinating of his directorate general and the Directorate General of Electricity at the ministry.

He said that the team, which will also help ensure fair power purchase agreement between developers and state-owned electricity firm PT PLN, is expected to complete the feed-in tariff formula this month.

Rida said that the new formula is aimed at ensuring attractive internal rate of return for investors in the country?s renewables projects as well as required incentives in a bid to help accelerate investment in the sector.

Meanwhile, Minister of Energy and Mineral Resources Ignasius Jonan said that he has signed the decree on the establishment of the team.

Editing by Reiner Simanjuntak