Power purchase from solar photovoltaic plants (No. 17/2013)

Ministerial Regulation no 17/2013 was adopted on 12th June 2013 and went into force on the same day. The Regulation introduces solar auction programme in Indonesia.Maximum price benchmark for power purchase from solar installations is established on the level of USD 0.25/kWh.For projects using high level of local content (at least 40%), the maximum price benchmark is elevated to USD 0.30/kWh.The Ministry of Energy and Mineral Resources annually publishes solar development plans in which the solar generation capacity targets are announced. In order to achieve established targets public biddings will be arranged for. Detailed instructions on application process for interested parties are outlined in the Regulation.The state owned utility PT Perusahaan Listrik Negara (PT PLN) is obliged to purchase electricity generated from solar photovoltaic projects on the basis of Power Purchase Agreemnts (PPAs) signed for period of 20 years.Solar project must be commissioned within 18 months period from the moment of signing PPA. This deadline can be extended by maximum 12 months with according reductions from the agreed power purchase price agreed in PPA:DelayPower purchase price reductionUp to 3 months3%Between 3 and 6 months5%Between 6 and 12 months8% In order to download full text of the Ministerial Regulation no 17/2013 please, .

Want to know more about this policy ? Learn more