Yogyakarta wind power project cancelled

Independent power producer PT UPC Yogyakarta Bayu Energi has cancelled its planned 50 MW wind power plant (PLTB) project in Samas, Bantul Regency, Yogyakarta Province, due to the low tariff of electricity from the project, Kompas reported on Tuesday.

The paper quoted Edi Indrajaya, head of public works and energy office at the Yogyakarta provincial administration, as saying that the low tariff has made the project to be not economically feasible. ?The (Samas) PLTB project has been cancelled,? he said.

The Samas PLTB project was part of the government?s five-yea program to develop a total of 35,000 MW power plants through 2019. President Joko Widodo launched the program in 2015 at the Samas PLTB site project.

PT UPC Yogyakarta Bayu Energi, a joint venture between PT UPC Renewables Indonesia PT Binatek Energi Terbarukan, initially planned to complete the project, dubbed to be the largest in Indonesia, in 2018. The company signed a power purchase agreement with state-owned electricity firm PT PLN in May of 2015.

But a new Minister of Energy and Mineral Resources Regulation introduced in March of this year limits tariff of electricity from renewable-based power plants at the regional electricity production cost (BPP) of PLN where the project is located. The local BPP in Yogyakarta currently stands at Rp 868 per kWh (6.52 US cents per kWh), lower than the national BPP average of $7.39 per kWh, or Rp 983 per kWh.

Manager of the Samas PLTB project Niko Priyambodo declined to provide comments, Kompas said. (*)