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ESDM Ministry Issues Regulations for Renewable Energy Utilization

by Sebastianus Epifany Friday, February 10, 2017 - 17:42

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) seeks to encourage the creation of new technologies as well as stimulating efficiency for the creation of affordable electricity prices by issuing the Energy and Mineral Resources (ESDM) Ministry Regulation No. 12 of 2017 which concerning the utilisation of Renewable Energy Sources for Electricity Supply.

The Energy and Mineral Resources (ESDM) Minister Regulation No. 12 of 2017 sets a maximum price benchmark for electricity from Renewable Energy sources such as solar, wind, water, biomass, biogas, garbage, and geothermal.

As a sample, the highest price of electricity from wind power plants is set at 85% of Main Cost Supply (BPP) Power in the area where the power plant is operated. If the BPP Power in the regional is bigger from the average of national BPP power or 100% from the regional BPP Power if it less or equal to the average of national BPP Power.

Director General of Electricity of ESDM Ministry, Jarman, pointed out that the price Solar Power Plant (PLTS) in Cambodia 6 cents cheaper than in Indonesia which could reach 15 cents per kWh. "I was shocked too. PLTS capacity of 10 MW was built by Cambodia on the border with Vietnam. The location is remote and the infrastructure is not so good. But electricity from solar power can still be cheap. How could we not be?" said Jarman, as reported from esdm.go.id (10/2/2017).

The Changes in the energy industry, especially those based on Renewable Energy (EBT) occur in many places in the world. Just mention the price of electricity derived from wind power plants in parts of Europe is ranging from USD 6 cents per kWh.

What is equally astonishing is the evolution of the electricity price from Solar Power Plant, ranging from USD 3 cents per kWh in the United Arab Emirates, USD 6 cents per kWh in Peru, up to USD 9 cents per kWh in Cambodia which are near Indonesia.

Head of Communications Bureau of ESDM Ministry, Sujatmiko describes the electricity production at lower costs will also lower the BPP. If the BPP is lower it would be one way of achieving the target increase of 11% renewable energy in 2017.

"ESDM Ministry ensure the policy which resulted can be realised. Likewise with the expected Ministry Regulation No. 12 of 2017 which addressed to encourages the development of the electrical technology of Renewable Energy to lower the electricity prices and declining Indonesia BPP," said Sujatmiko.

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