Geothermal PPAs could get access to power wheeling scheme in Indonesia
If made open-access new power wheeling scheme discussed in Indonesia could open the market to electricity buyers other than PLN.
The Indonesian Geothermal Association (API) hopes that the power wheeling scheme that is being discussed in the distribution of new and renewable energy (EBT) will be open access.
“We hope that the Power Wheeling agreed later in the EBET (New Energy and Renewable Energy) Law is power wheeling in the form of open access, not limited to distributing electricity to subsidiaries,” said API Chair Priyandaru Effendi to Kontan.co.id, Sunday (24 /7).
As is known, the power wheeling scheme is a joint use of the electric power network. This mechanism can facilitate the transfer of electrical energy from renewable energy sources or non-PLN generators to the company’s operating facilities by utilizing the transmission network owned and operated by PT Perusahaan Listrik Negara (PLN).
This utilization scheme has previously been regulated in the Regulation of the Minister of Energy and Mineral Resources (ESDM) Number 11 of 2021 concerning the Implementation of Electricity Business.
Article 45 of the regulation states that the holder of an integrated IUPTLU, IUPTLU for electricity transmission, IUPTLU for electricity distribution; and/or IUPTLS may cooperate between business license holders. The cooperation in question is in the form of joint utilization of the electric power network; and/or parallel operation.
In this cooperation, joint utilization of the electric power network can be carried out to distribute electricity from generation to load point. However, according to API records, these provisions have not been implemented because they do not have implementation instructions.
“There must be regulations that explain what the mechanism is like. There is a toll fee, all of which must be transparent in the amount,” said Priyandaru.
Later, Kontan.co.id received information that the power wheeling scheme was also mentioned in the New Renewable Energy Bill which will soon be submitted to the DPR to be discussed by the working committee (Panja) for the preparation of the EBT Law.
In the draft, the government also proposed 1 article to provide opportunities for EBT IPP entrepreneurs to be able to build their own electricity transmission specifically to connect EBT electricity.
Priyandaru himself welcomed the provision. “Of course this will spur investment interest in ET (renewable energy), considering there are alternative buyers besides PLN,” he said.
The Executive Director of the Institute for Essential Services Reform (IESR), Fabby Tumiwa said, the power wheeling scheme, especially for renewable energy generation, is needed to answer the needs of industrial and commercial consumers who need electricity from renewable energy sources.
“In addition, renewable power wheeling can make renewable energy generation more attractive. I consider this provision positive to encourage the development of renewable energy outside of PLN,” added Fabby to Kontan.co.id (24/7).
Fabby assessed that with the inclusion of the power wheeling scheme into legal products at the statutory level, the implementation of power wheeling would have higher legal force than if it was only regulated at the ministerial level regulation.
“What the government needs to pay attention to is the rules for implementing power wheeling which requires compliance from integrated IUPTL holders, especially PLN,” said Fabby.