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New regulations in Indonesia on renewable energy feed-in-tariffs not including geothermal for now

View over Jakarta, Indonesia (source: flickr/ Nick Gray, creative commons)
Alexander Richter 2 Mar 2020

With new regulation on renewable energy and feed-in-tariffs in Indonesia expected to be signed soon, feed-in-tariffs are to be included in separate regulations to come later, so the Ministry of Energy and Natural Resources in Indonesia.

Indonesia’s President Joko Widodo will soon sigh a government regulation on renewable energy, so the Jakarta Post today. This piece of regulation has been a long time in the making and is expected to fix among others the formula for the electricity feed-in-tariff for renewable energy (and thereby geothermal energy) projects. According to government officials, the goal is to improve the attractiveness of renewable energy investments in the country.

Accroding to FX Sutijastoto, Director General for Renewable Energy at the Energy and Mineral Resources Ministry of Indonesia (EBTKE/ EDSM), the draft has been sent to the President.

He said, the revamping of prices became one of the focus of the government in the new and renewable energy sector in order to encourage investments that have a more natural energy value to be more attractive to the miners.

If we understand the news correctly, it seems geothermal energy specifications are to be included a bit later.  The electricity purchase price scheme is planned to be adjusted to the production costs of each type of renewable energy.

On the other hand, the Government is targeting investment in the new and renewable energy sector to reach US $ 20 billion in 2024.

Minister of Energy and Mineral Resources Arifin Tasrif explained that Indonesia still has new and renewable energy potential of 700 GW. He targets that by 2025 the portion of EBT towards the national energy mix will reach 23 percent, which is currently only 9 percent-10 percent.

“The draft was sent last week, “he was quoted as saying by bisnis.com. He was reluctant to elaborate on the content of the proposed regulation, but said it would regulate the feed-in tariff of electricity produced from renewable energy sources sold to state-owned electricity company PLN, except that of geothermal.

“The pricing policy for geothermal energy will be regulated under a different regulation,” he said, adding that the regulation on geothermal and other renewable energy would be issued to improve the investment climate in the renewable energy sector so that there would more investors interested in producing clean energy in the country.

With the improvement in the pricing formula, the government hopes that investment in new and renewable energy will reach US$20 billion by 2024.

Minister Arifin Tasrif said in Jakarta on Monday that the country had the potential to produce 700 gigawatts (GW) of new and renewable energy. He hopes the contribution of new and renewable energy in the country’s energy mix will increase to 23 percent by 2025 from between 9 and 10 percent at present.

Source: Bisnis.com, The Jakarta Post