Year Regulation Key institutional features Key PPA features Key price features
1995 MR No.1895/1995 on the selling rate
of electricity from small-scale power generating plants owned by private sector and cooperatives
PLN prioritises purchase from hydro, wind, solar, geothermal.
Small power producer defined as < 30 MW in Java and < 15MW outside of Java
Permits/Issued by:
• SPPP (Notification of
Presidential
approval)/Chairman of
Investment Coordinating Board (BKPM)
• SPPM (Investment Approval
Letter)/BKPM
• IUKU (Electricity Business Licence for Public
Provision)/Minister of MEMR
Contract for cooperatives: 1 year
Contact for firms: 3–20 years
PPA annulled after one year if firm cannot secure finance
Letter of approval for project from DG of PLN basis for getting permits
No specific price
Price based on: annual marginal cost of PLN and capacity factor
2002 MR No. 1122/2002 known as PSK
Tersebar or on Small-Scale Power Purchase Agreement
Requires PLN to purchase renewable electricity from producers for projects up to 1 MW capacity
Permits/Issued by (in addition to the ones in MD 1895/1995):
• SULO (Commissioning
Certificate)/DG PLN and district head
• Letter of approval for project/DG PLN and head of district
UPL/Ministry of Environment
Contract
PLN has 60 days to evaluate project proposals
Construction of plant must start within one year after signing of PPA
No specific price, price based on:
• PLN production and
delivery cost of electricity (BPP)
• set as 60% and 80% of BPP
for low or medium voltage connection
88
Year Regulation Key institutional features Key PPA features Key price features
2006 MR No. 2/2006 on Medium Scale
Power Generation Using Renewable Energy for generation capacity of 1– 10 MW
Same licences as MR No. 1122/2002 Minimum contract period: 10
years
Same tariff system as MR No. 1122/2002
No specific price
Tariff for first three years based on BPP at the time of signing of PPA; afterwards annual adjustment based on annual BPP
2009 MR No. 31/2009 on Small and
Medium Scale Power Generation Utilizing Renewable Energy
Regulates and sets specific tariffs for small and medium power plants with capacity of up to 10 MW
Same licences as in previous MR
PLN has the authority to base the purchasing price based on its own electricity cost estimates which needs to be reported to the Minister of MEMR
PLN is obliged to provide standardised PPA contracts
656 IDR/kWh (medium voltage grid) x regional f-factor (ranging from 1, 1.2 to 1.3) and 1004 IDR/kWh (low voltage grid) x regional f-factor
Prices can be adjusted periodically
2012 MR No. 4/2012 on PLN Purchasing
Price of Renewable Electricity from Small and Medium Size Producers (1– 10 MW)
If PLN decides to buy power in excess or equal to the prevailing production costs (BPP), it has to seek permit from the DG of Electricity of the MEMR
For purchasing excess power, the maximum contract length is one year
Biomass and biogas:
• medium voltage, 975
IDR/kWh
• low voltage, 1,325 IDR/kWh
89
Year Regulation Key institutional features Key PPA features Key price features
Same as MR No. 31/2009, but adds tariffs for biomass gas, municipal solid waste and waste using sanitary landfill
PLN is obliged to report provincial BPP prices to the DG Electricity every three months
• medium voltage, 1,050
IDR/kWh
• low voltage, 1,398 IDR/kWh
Sanitary landfill waste:
• medium voltage, 850
IDR/kWh
• low voltage, 1,998 IDR/kWh
2013 MR No. 19/2013 on Purchasing Price
of Renewable Electricity from Small and Medium Size Producers (1–10 MW) for municipal solid waste and landfill technology
Revision of the purchasing price for municipal solid waste and landfill waste electricity for PLN as set under MR No. 2/2012
Same licenses as in previous MR PPA length of 20 years Municipal solid waste:
• medium voltage, 1,450
IDR/kWh
• low voltage, 1,798
IDR/kWh
Waste using sanitary landfill:
• medium voltage, 1,250
IDR/kWh
• low voltage, 1,598 IDR/kWh
2013 MR No. 17/2013 on Purchasing Price
of Renewable Electricity from Small and Medium Size Producers (1–10 MW) for Solar PV
Same licenses as in previous MR
FIT part of reverse bidding mechanism
Capacity tender quota managed by MEMR (140 MWp in 80 locations)
PPA length of 20 years
FIT price includes connecting procurement fee to transmission to PLN grid
Developer bids, lowest FIT bid wins
For local content modules (i.e., local content has to be greater than 40%):
90
Year Regulation Key institutional features Key PPA features Key price features
Developer with lowest bid on FIT wins
Year 11–20, 13 cents/kWh For imported modules: Year 1–10, 25 cents/kWh Year 11–20, 10 cents/kWh
2014 MR No. 27/2014 on Purchasing Price
of Renewable Electricity from Small and Medium Size Producers (1–10 MW) for municipal solid waste and landfill technology
Revised FITs of MR No. 19/2013 Medium voltage:
• Biomass, 1,150 IDR/kWh
• Biogas, 1,050 IDR/kWh
• Municipal solid waste (zero waste), 1,450 IDR/kWh • Landfill waste, 1,250 IDR/kWh Low voltage: • Biomass, 1,500 IDR/kWh • Biogas, 1,400 IDR/kWh
• Municipal solid waste (zero waste), 1,798 IDR/kWh • Landfill waste, 1,598
IDR/kWh
FITS x regional factors, ranging from:
Java (1) to Papua (1.6)
2014 MR No. 12/2014 Purchasing Price of
Renewable Electricity from Small and
Base price x regional f-factor (ranging from 1, 1.2 to 1.3): Year 1–8:
91
Year Regulation Key institutional features Key PPA features Key price features
Medium Size Producers (1–10 MW) for hydropower Medium (up to 10 MW), 1,075 IDR/kWh Low (up to 250 kW), 1,270 IDR/kWh Year 8–20: Medium (up to 10 MW), 750 IDR/kWh Low (up to 250 kW), 700 IDR/kWh
2015 MR No. 12/2014 Purchasing Price of
Renewable Electricity from Small and Medium Size Producers (1–10 MW) for hydropower
Regulation stipulates tariff in US cents/kWh
Base price x regional f-factor (ranging from 1, 1.2 to 1.3): Year 1–8: • Medium (up to 10 MW), 12 cents/kWh • Low (up to 250 kW), 14.4 cents/kWh Year 8–20 • Medium (up to 10 MW), 7.5 cents/kWh • Low (up to 250 kW), 9 cents/kWh
2016 MR No. 19/2016 Purchasing Price of
Renewable Electricity from Small and Medium Size Producers for Solar PV
Quota capacity of 5000 MW
determined on regional basis MEMR. Requires solar plant developers to
PPA length of 20 years Fixed FIT on first-come-first-
served basis
92
Year Regulation Key institutional features Key PPA features Key price features
comply with the minimum local content requirements as stipulated by Ministry of Trade and Industry regulations
FIT price includes connecting procurement fee to transmission to PLN grid
Papua (highest FIT), 23 cents
Notes: Asian Development Bank. IDR = Indonesian Rupiah. FITs = Feed-in-Tariffs. IPP = Independent Power Producers. METI = Renewable Society Indonesia. MEMR = Ministry for Energy and Mineral Resources. MR = Ministerial Regulation. PLN = National Electricity Company. PPA = Power Purchasing Agreement.
93