Embracing the spirit of Paris Agreement, the Government of Indonesia has issued Presidential Regulation Number 112 of 2022 on Acceleration of Renewable Energy Development for Power Supply (“PR 112/2022”) as an inaugural step to gradually implement renewable energy power plants in replacing coal-fired power plants. Moving forward, the government continues to take the leap in facilitating the transition through Minister of Finance Regulation Number 103 of 2023 on the Provision of Fiscal Support through the Funding and Financing Framework for the Acceleration of Energy Transition in the Electricity Sector (“MoFR 103/2023”). With the hope of greener earth, the Indonesian Government is yet on track to build a sound regulatory framework while ensuring lucrative framework for investors. Find out more our insights about this topic in our Legal Brief publication.
Acceleration the utilization of Renewable Energy Sampe Purba
Presented in Asean Clean Energy Week, November 2020
Despite the pandemic covid 19, Indonesia commits to promote the utilization of Renewable Energy in our Energy Mix
The briefing at the following link explores the impact of the proposed changes to the renewable subsidy regime for solar facilities installed in England and Wales that are five (5) megawatts or larger in size ('Large-scale PV Plants') given the 13 May 2014 announcement from DECC ('URN 14D/114').
DECC have put forward that in their view the capacity threshold of gigawatts installed of Large-Scale PV Plants in England and Wales will be achieved by the solar development community (including funders, contractors and developers) by mid-2015 rather than by the earlier predicted threshold-achievement by mid-2017.
Given the predicted threshold-achievement by 2015, the portion of the Levy Control Framework budget for Large-Scale PV Plants accredited for ROCs will have to end in the UK Government's view in April 2015, rather than in April 2017, with the net result that contracts for difference ('CfDs') will have an earlier adoption date that coincides with the targeted curtailment of ROCs for PV Plants on 1.4.15 ('Cut-off-Date').
The non-progression of "grandfathering" of ROCs following the Cut-off-Date for plants already accredited for receipt of ROCs, and the likely impact of the key terms of the current form of CfD are explored in this article, together with brief discussion on the other proposals to tackle the early threshold-achievement that were considered by DECC and reported on in URN 14D/114.
Our team are ready to assist with preparation of responses to the Consultation due by 7.7.14.
National Renewable Energy Program (NREP) 2020-2040 and sector updates, Ruby G...OECD Environment
2nd OECD-DOE Clean Energy Finance and Investment Consultation Workshop: Unlocking finance and investment for clean energy in the Philippines, 24-25 November 2022, Bohol, Philippines
This document outlines draft regulations for a renewable energy feed-in tariff (REFIT) program in Nigeria. The REFIT aims to boost renewable energy generation through long-term power purchase agreements between generators and buyers that provide guaranteed pricing. Key points include:
- The REFIT will apply to renewable projects between 1-30MW and targets 2000MW of capacity by 2020 from solar, wind, hydro, and biomass.
- Standardized PPAs and grid connection will be required for projects up to 30MW, while larger projects will require negotiated PPAs.
- Tariffs will be technology-specific and calculated using a long run marginal cost methodology to provide reasonable returns over 20-year PPAs.
- Cap
The document discusses amendments made by the Central Electricity Regulatory Commission to the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2012. Key points include:
1) Amendments made to technical norms for biomass power projects and limits placed on fossil fuel use in biomass plants.
2) Specification of Operation and Maintenance expenses for solar PV projects for FY 2016-17.
3) Clarification provided on Return on Equity rates fixed in the regulations and treatment of suggestions made by stakeholders.
4) Presentation of levelized generic tariffs determined for various renewable energy technologies for FY 2016-17.
Applying for contracts for difference when the application window commences on 14 October. Details on Allocation Framework and draft allocation regulations from the UK Government and as published on DECC's website.
The document discusses the UK government's plans to introduce a second round of Contracts for Difference (CfDs) to support renewable energy projects. Key points include:
- The first round of CfDs in the UK was considered a failure as bids for some technologies like solar were too low to build viable projects.
- The 2016 UK budget announced £730 million for CfDs over this parliamentary term for up to 4GW of offshore wind and other less established renewables.
- £50 million was also allocated for energy storage innovation to help technologies access the market.
- The document outlines some of the key considerations and terms of the new CfDs, including strike prices, indexing, availability
Small Power Generation Plant solution (SPGP) continues to be an important segment of Electrical Energy production. The increasing demand for energy has to be satisfied while considering the impact on the global environment. SPGP plays an important role in industrial applications. Small size cogeneration plants sited close to industrial energy consumption can deliver power with high fuel efficiency and low emissions, and with modest space requirements. CRDenergy can offer to its customers complete solutions from feasibility studies to the actual turnkey cogeneration plant construction, aftermarket services and customized financial solutions. We are using oil and gas industrial port city Port Harcourt city (PH) in Nigeria, African largest economy as a case study, with its complexity, it reflects the shortage of power or barriers and opportunity encountered in every growing economy . Avoiding the structural complexity of building large scale power plant; SPGP offers a flexible, realiable, close to consumer option that can be multipled in multiple units and easily transformed to negbourhood service station in industrial hubs.
Acceleration the utilization of Renewable Energy Sampe Purba
Presented in Asean Clean Energy Week, November 2020
Despite the pandemic covid 19, Indonesia commits to promote the utilization of Renewable Energy in our Energy Mix
The briefing at the following link explores the impact of the proposed changes to the renewable subsidy regime for solar facilities installed in England and Wales that are five (5) megawatts or larger in size ('Large-scale PV Plants') given the 13 May 2014 announcement from DECC ('URN 14D/114').
DECC have put forward that in their view the capacity threshold of gigawatts installed of Large-Scale PV Plants in England and Wales will be achieved by the solar development community (including funders, contractors and developers) by mid-2015 rather than by the earlier predicted threshold-achievement by mid-2017.
Given the predicted threshold-achievement by 2015, the portion of the Levy Control Framework budget for Large-Scale PV Plants accredited for ROCs will have to end in the UK Government's view in April 2015, rather than in April 2017, with the net result that contracts for difference ('CfDs') will have an earlier adoption date that coincides with the targeted curtailment of ROCs for PV Plants on 1.4.15 ('Cut-off-Date').
The non-progression of "grandfathering" of ROCs following the Cut-off-Date for plants already accredited for receipt of ROCs, and the likely impact of the key terms of the current form of CfD are explored in this article, together with brief discussion on the other proposals to tackle the early threshold-achievement that were considered by DECC and reported on in URN 14D/114.
Our team are ready to assist with preparation of responses to the Consultation due by 7.7.14.
National Renewable Energy Program (NREP) 2020-2040 and sector updates, Ruby G...OECD Environment
2nd OECD-DOE Clean Energy Finance and Investment Consultation Workshop: Unlocking finance and investment for clean energy in the Philippines, 24-25 November 2022, Bohol, Philippines
This document outlines draft regulations for a renewable energy feed-in tariff (REFIT) program in Nigeria. The REFIT aims to boost renewable energy generation through long-term power purchase agreements between generators and buyers that provide guaranteed pricing. Key points include:
- The REFIT will apply to renewable projects between 1-30MW and targets 2000MW of capacity by 2020 from solar, wind, hydro, and biomass.
- Standardized PPAs and grid connection will be required for projects up to 30MW, while larger projects will require negotiated PPAs.
- Tariffs will be technology-specific and calculated using a long run marginal cost methodology to provide reasonable returns over 20-year PPAs.
- Cap
The document discusses amendments made by the Central Electricity Regulatory Commission to the Central Electricity Regulatory Commission (Terms and Conditions for Tariff determination from Renewable Energy Sources) Regulations, 2012. Key points include:
1) Amendments made to technical norms for biomass power projects and limits placed on fossil fuel use in biomass plants.
2) Specification of Operation and Maintenance expenses for solar PV projects for FY 2016-17.
3) Clarification provided on Return on Equity rates fixed in the regulations and treatment of suggestions made by stakeholders.
4) Presentation of levelized generic tariffs determined for various renewable energy technologies for FY 2016-17.
Applying for contracts for difference when the application window commences on 14 October. Details on Allocation Framework and draft allocation regulations from the UK Government and as published on DECC's website.
The document discusses the UK government's plans to introduce a second round of Contracts for Difference (CfDs) to support renewable energy projects. Key points include:
- The first round of CfDs in the UK was considered a failure as bids for some technologies like solar were too low to build viable projects.
- The 2016 UK budget announced £730 million for CfDs over this parliamentary term for up to 4GW of offshore wind and other less established renewables.
- £50 million was also allocated for energy storage innovation to help technologies access the market.
- The document outlines some of the key considerations and terms of the new CfDs, including strike prices, indexing, availability
Small Power Generation Plant solution (SPGP) continues to be an important segment of Electrical Energy production. The increasing demand for energy has to be satisfied while considering the impact on the global environment. SPGP plays an important role in industrial applications. Small size cogeneration plants sited close to industrial energy consumption can deliver power with high fuel efficiency and low emissions, and with modest space requirements. CRDenergy can offer to its customers complete solutions from feasibility studies to the actual turnkey cogeneration plant construction, aftermarket services and customized financial solutions. We are using oil and gas industrial port city Port Harcourt city (PH) in Nigeria, African largest economy as a case study, with its complexity, it reflects the shortage of power or barriers and opportunity encountered in every growing economy . Avoiding the structural complexity of building large scale power plant; SPGP offers a flexible, realiable, close to consumer option that can be multipled in multiple units and easily transformed to negbourhood service station in industrial hubs.
Renewables will shape Argentina’s new energy matrixDoris Capurro
The Argentina Renewable Energy Program 2016-2025, explain by Sebastián Kind, Subsecretario de Energías Renovables del Ministerio de Energía y Minería de la Nación Argentina.
This document summarizes Gujarat's new Wind Power Policy for 2013-2016. The key points are:
- It aims to promote wind power generation in Gujarat by providing various incentives over a 25 year period.
- It sets renewable purchase obligations for distribution licensees to purchase a portion of energy from wind and other renewable sources.
- It allows private companies and individuals to set up wind turbines either for captive use or third party sale, and lays out terms for wheeling power, banking surplus energy, and selling excess to distribution utilities.
Korea's energy policies and cooperation opportunities between Australia and K...Yonki Hyungkeun PARK
Korea is transitioning its energy mix toward more LNG and renewables like solar and wind. It aims to source 20% of its electricity from renewables by 2030 through policies like strengthened renewable portfolio standards and renewable energy credits. Korea also released a hydrogen economy roadmap to develop hydrogen as a new growth area, targeting 1.8 million fuel cell vehicles and 50 kilotons of annual hydrogen production by 2040. Major Korean companies like POSCO and LG are global leaders in batteries, fuel cells, solar panels, wind turbines, and other future energy technologies. There are significant opportunities for cooperation between Australian and Korean companies in areas like natural gas, hydrogen, and renewable resources, as well as sharing technology, knowledge, and
The document discusses factors that determine the cost of electricity generation from different types of power plants. It analyzes construction costs, fuel costs, government incentives, and emissions controls for various conventional and renewable power plants. The lowest cost options are pulverized coal, natural gas combined cycle, and geothermal plants, which have costs around $60 per megawatt-hour. Wind, integrated gasification combined cycle coal, and nuclear plants have higher costs in the $80 per megawatt-hour range due to their high capital costs and financing charges. The natural gas combined cycle plant currently provides low-cost electricity generation throughout the United States.
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...Dr. Oliver Massmann
Vietnam has great potential for renewable energy investment due to its natural resources like abundant sunlight and long coastline. The government is encouraging renewable energy development by establishing favorable policies like feed-in tariffs and power purchase agreements. Major trade agreements provide protections for foreign investors in Vietnam's energy sector through commitments on government procurement and investor-state dispute settlement mechanisms. Renewable energy such as solar, wind, waste-to-energy and hydrogen present opportunities to meet Vietnam's growing energy needs while reducing environmental impacts.
Nihat Dincmen IOG 2014 2015 Final ThesisNihat Dincmen
The document discusses direct methanol fuel cells (DMFC) as a promising power source that could replace diesel generators currently used in the oil and gas industry. DMFC is a type of proton exchange membrane fuel cell that uses methanol instead of hydrogen as a fuel. It argues that DMFCs offer economic, technical, and environmental advantages over diesel generators and could become a game changer for power supply in oil and gas operations. However, the technology is not yet at a scale for large-scale applications and further development is needed, particularly of proton exchange membranes, to allow commercialization.
Jorge Casillas, Director de Regulación y Mercados de EDP Renováveis
Mesa 1: El objetivo de la sostenibilidad en las empresas energéticas
IV Simposio Empresarial Internacional Funseam: El Sector energético frente a los retos del 2030
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Indonesia's emission cap and trade in power sector - Bayu Nugroho, MEMROECD Environment
This document discusses Indonesia's plans to implement an emission cap and trade system in the power sector. Key points include:
- Indonesia has committed to reducing emissions by 29-41% by 2030 under the Paris Agreement and plans to use carbon pricing mechanisms like carbon taxes and trading to help meet this goal.
- The Directorate General of Electricity is conducting an emission trading system trial in 2021-2024 before implementing a mandatory program in 2025. The trial focuses on power plants and uses a cap-and-trade approach.
- Simulation results from the 2021 trial showed over 42,000 tons of CO2 transferred between power plants and 4,500 tons offset through international carbon credits.
- Indonesia also plans to
22PESGM3738 Policy Support in Power Sector - Added Role of Renewable Energy.pptxSUBRATAMUKHOPADHYAY9
This article details about the policy support requirement in aid of Renewable Energy Development for more utilization to bring down the cost and eventually lead the transition to replace Conventional Sources supplying electricity.
Wind Force Newsletter Feb, Edition, 2012rupeshsingh_1
The document summarizes recent developments in the Indian wind power sector, including regulatory orders and tariff proposals. Key points include:
1) A TNERC order clarifies that consumers can meet demand through third party purchases in addition to their TNEB quota.
2) KERC amended its RPO regulations regarding captive plant definitions and compliance via solar and non-solar RECs.
3) Several DISCOMs in Andhra Pradesh filed proposed tariff hikes for 2012-13, with increases ranging from 50-100 paise/kWh depending on voltage level.
4) An upcoming event is the Renewable Energy Finance Summit in Mumbai on March 20th.
The document discusses efforts by the Indonesian government to lower risks for clean energy projects through regulation. It outlines commitments to transition to net zero emissions, programs to develop new renewable energy, and investment risks in the renewable energy sector. The government aims to reposition permitting authority, streamline the permitting process online, provide pricing and power purchase agreement guidance, and establish mechanisms to purchase renewable energy at a fair price. These regulatory changes aim to de-risk clean energy investments and accelerate Indonesia's renewable energy development.
CCS Forum Report - Summary report - July 2016 with FSCAlexandra Howe
1. Key priorities for CCS discussed at the forum include developing frameworks to understand the interplay between CCS technologies and markets, screening new sorbents and solvents for CO2 capture, and de-risking CO2 storage infrastructure.
2. Standards need to be established for evaluating new CO2 capture processes, and utilizing CO2 via enhanced oil recovery can help develop transportation infrastructure in the near-term.
3. Meeting long-term climate targets requires supporting CCS research and deploying the technology, as options like BECCS rely on a mature CCS industry. Funding is urgently needed to progress CCS deployment.
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...Dr. Oliver Massmann
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AND THE CPTPP CONTRIBUTE TO BANKABILITY OF ENERGY PROJECTS – WHAT YOU MUST KNOW:
Review on Optimization of Microgrid Using Various Optimization TechniquesIJAEMSJORNAL
The development of a smart grid includes the microgrid. Microgrids are essential to the development of the present and future electricity networks, as they can provide many advantages to the expanding and complex power systems, such as better power quality, increased integration of clean and renewable energy sources, increased efficiency, and increased network stability and reliability., etc. It is basically a small power system which has distributed energy resources (like renewable energy etc.). This paper conducts a literature review on Optimization Algorithms of Microgrid. We provide a summary of the typical system structure, which consists of energy end users, energy distribution systems, energy storage systems, and energy generation systems. Finally, we identify areas for future microgrid research challenges.
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...electricitygovernance
The document summarizes the regulatory regime for renewable energy projects in Andhra Pradesh. It outlines the state commission's role in promoting renewable generation under the Electricity Act of 2003. Key points include a renewable purchase obligation of 5% for distribution licensees from 2005-2008, with 0.5% reserved for wind. Tariffs were determined in 2004 and incentives were provided, like banking privileges for mini-hydel and wind projects. The order rationalized tariffs for various renewable technologies.
Overview of the energy sector in zambia case of renewable energyJerry Sakala
The Energy Regulation Board (ERB), with the support of the USAID Trade Hub Southern Africa (SATH) has developed the draft Renewable Energy Feed in Tariffs (REFiT) Regulatory Framework. The REFiT Regulatory Framework was developed in line with REFiT Policy of 2015 developed by the Ministry of Mines Energy and Water Development. The REFiT regulatory framework was presented to stakeholders on Tuesday 22nd September 2015.
The REFiT Regulatory framework outlines the following:
REFiT Indicative Tariffs for solar projects;
Rules and Guidelines for RE projects to be implemented under the REFiT Policy of 2015; and
Guidelines for REFiT Power Purchase Agreements, and application procedures for project developers.
These rules and guidelines are only applicable to small scale renewable energy systems as defined in the REFiT Policy of 2015.
The document is a determination by the National Electric Power Regulatory Authority (NEPRA) of Pakistan regarding a proposed modification to the generation license of K-Electric Limited (KEL).
NEPRA approved adding re-gasified liquefied natural gas (RLNG) as an alternate fuel for KEL's generation facilities. This was proposed by KEL due to declining natural gas supply from the Sui Southern Gas Company and to ensure optimal use of existing generation assets. Some stakeholders expressed concerns about the potential tariff impact and need for evaluation of plant efficiencies using RLNG. NEPRA will enforce performance standards and protect consumer interests related to increased costs from using the more expensive RLNG fuel.
The document is a brochure from ITM Power plc that discusses power-to-gas (P2G) energy storage solutions using hydrogen. It notes that P2G can help integrate renewable energy by storing excess electricity from intermittent sources like wind in the form of hydrogen injected into existing gas pipelines. This provides grid balancing services while also decarbonizing gas supplies. The brochure highlights a project with Thüga Group in Germany and argues that a proposed increase to UK limits of hydrogen in gas networks could facilitate more renewable energy storage through P2G.
Solar Power Project (45 MW): Bulgarian Electricity Market Study Simeon Arnaudov
This document summarizes a research project on a proposed 45 MW solar power project in Bulgaria. It includes the following key points:
- The researcher is a PhD candidate studying the Bulgarian electricity market and potential for a private Korean investment in a 20+25 MW solar power plant project.
- The document provides background on Bulgaria's energy market structure, existing renewable energy capacity, and benchmarking of solar capacity in European countries.
- Details of the proposed solar power plant project are given, including location, technology, investment costs, and observations from the researcher on potential improvements.
- Areas for further research are identified such as evaluating successful and unsuccessful practices of past Korean renewable investments in Bulgaria and assessing implications of current
Regulatory Updates on Mineral and Coal Mining: Understanding the Latest Amend...AHRP Law Firm
In 2021, the Indonesian Government introduced Government Regulation Number 96 of 2021 on the Implementation of Mineral and Coal Mining Business Activities ("GR No. 96/2021"), which aimed to regulate various aspects of mineral and coal mining business activities comprehensively. However, recognizing the need to streamline bureaucracy, enhance legal and investment certainty, the Indonesian Government enacted Government Regulation Number 25 of 2024 on 30 May 2024, amending several provisions of GR No. 96/2021. Find out more about our insights on this topic in our Legal Brief publication.
Initial Public Offering for Issuers with Small-Scale and Medium-Scale Assets.pdfAHRP Law Firm
Initial Public Offering or commonly known as IPO provides both financial and non-financial benefits to the parties that conduct such, including increasing capitals, business expansion, and improving company's image. Further, big companies are not the only ones that may enjoy the benefit of IPO, as Small-Scale and Medium-Scale companies can also conduct IPO. Find out more our insights about this topic in our Legal Brief Publication.
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Renewables will shape Argentina’s new energy matrixDoris Capurro
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This document summarizes Gujarat's new Wind Power Policy for 2013-2016. The key points are:
- It aims to promote wind power generation in Gujarat by providing various incentives over a 25 year period.
- It sets renewable purchase obligations for distribution licensees to purchase a portion of energy from wind and other renewable sources.
- It allows private companies and individuals to set up wind turbines either for captive use or third party sale, and lays out terms for wheeling power, banking surplus energy, and selling excess to distribution utilities.
Korea's energy policies and cooperation opportunities between Australia and K...Yonki Hyungkeun PARK
Korea is transitioning its energy mix toward more LNG and renewables like solar and wind. It aims to source 20% of its electricity from renewables by 2030 through policies like strengthened renewable portfolio standards and renewable energy credits. Korea also released a hydrogen economy roadmap to develop hydrogen as a new growth area, targeting 1.8 million fuel cell vehicles and 50 kilotons of annual hydrogen production by 2040. Major Korean companies like POSCO and LG are global leaders in batteries, fuel cells, solar panels, wind turbines, and other future energy technologies. There are significant opportunities for cooperation between Australian and Korean companies in areas like natural gas, hydrogen, and renewable resources, as well as sharing technology, knowledge, and
The document discusses factors that determine the cost of electricity generation from different types of power plants. It analyzes construction costs, fuel costs, government incentives, and emissions controls for various conventional and renewable power plants. The lowest cost options are pulverized coal, natural gas combined cycle, and geothermal plants, which have costs around $60 per megawatt-hour. Wind, integrated gasification combined cycle coal, and nuclear plants have higher costs in the $80 per megawatt-hour range due to their high capital costs and financing charges. The natural gas combined cycle plant currently provides low-cost electricity generation throughout the United States.
LAWYER IN VIETNAM DR. OLIVER MASSMANN - VIETNAM – WHY YOU SHOULD INVEST IN RE...Dr. Oliver Massmann
Vietnam has great potential for renewable energy investment due to its natural resources like abundant sunlight and long coastline. The government is encouraging renewable energy development by establishing favorable policies like feed-in tariffs and power purchase agreements. Major trade agreements provide protections for foreign investors in Vietnam's energy sector through commitments on government procurement and investor-state dispute settlement mechanisms. Renewable energy such as solar, wind, waste-to-energy and hydrogen present opportunities to meet Vietnam's growing energy needs while reducing environmental impacts.
Nihat Dincmen IOG 2014 2015 Final ThesisNihat Dincmen
The document discusses direct methanol fuel cells (DMFC) as a promising power source that could replace diesel generators currently used in the oil and gas industry. DMFC is a type of proton exchange membrane fuel cell that uses methanol instead of hydrogen as a fuel. It argues that DMFCs offer economic, technical, and environmental advantages over diesel generators and could become a game changer for power supply in oil and gas operations. However, the technology is not yet at a scale for large-scale applications and further development is needed, particularly of proton exchange membranes, to allow commercialization.
Jorge Casillas, Director de Regulación y Mercados de EDP Renováveis
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IV Simposio Empresarial Internacional Funseam: El Sector energético frente a los retos del 2030
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This document discusses Indonesia's plans to implement an emission cap and trade system in the power sector. Key points include:
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- The Directorate General of Electricity is conducting an emission trading system trial in 2021-2024 before implementing a mandatory program in 2025. The trial focuses on power plants and uses a cap-and-trade approach.
- Simulation results from the 2021 trial showed over 42,000 tons of CO2 transferred between power plants and 4,500 tons offset through international carbon credits.
- Indonesia also plans to
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This article details about the policy support requirement in aid of Renewable Energy Development for more utilization to bring down the cost and eventually lead the transition to replace Conventional Sources supplying electricity.
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The document summarizes recent developments in the Indian wind power sector, including regulatory orders and tariff proposals. Key points include:
1) A TNERC order clarifies that consumers can meet demand through third party purchases in addition to their TNEB quota.
2) KERC amended its RPO regulations regarding captive plant definitions and compliance via solar and non-solar RECs.
3) Several DISCOMs in Andhra Pradesh filed proposed tariff hikes for 2012-13, with increases ranging from 50-100 paise/kWh depending on voltage level.
4) An upcoming event is the Renewable Energy Finance Summit in Mumbai on March 20th.
The document discusses efforts by the Indonesian government to lower risks for clean energy projects through regulation. It outlines commitments to transition to net zero emissions, programs to develop new renewable energy, and investment risks in the renewable energy sector. The government aims to reposition permitting authority, streamline the permitting process online, provide pricing and power purchase agreement guidance, and establish mechanisms to purchase renewable energy at a fair price. These regulatory changes aim to de-risk clean energy investments and accelerate Indonesia's renewable energy development.
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1. Key priorities for CCS discussed at the forum include developing frameworks to understand the interplay between CCS technologies and markets, screening new sorbents and solvents for CO2 capture, and de-risking CO2 storage infrastructure.
2. Standards need to be established for evaluating new CO2 capture processes, and utilizing CO2 via enhanced oil recovery can help develop transportation infrastructure in the near-term.
3. Meeting long-term climate targets requires supporting CCS research and deploying the technology, as options like BECCS rely on a mature CCS industry. Funding is urgently needed to progress CCS deployment.
VIETNAM – POWER ENERGY – TRANSITION AND PDP8 – HOW THE EVFTA AND THE EVIPA AN...Dr. Oliver Massmann
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The development of a smart grid includes the microgrid. Microgrids are essential to the development of the present and future electricity networks, as they can provide many advantages to the expanding and complex power systems, such as better power quality, increased integration of clean and renewable energy sources, increased efficiency, and increased network stability and reliability., etc. It is basically a small power system which has distributed energy resources (like renewable energy etc.). This paper conducts a literature review on Optimization Algorithms of Microgrid. We provide a summary of the typical system structure, which consists of energy end users, energy distribution systems, energy storage systems, and energy generation systems. Finally, we identify areas for future microgrid research challenges.
A Presentation on the Regulatory Regime for Renewable Energy Projects in Andh...electricitygovernance
The document summarizes the regulatory regime for renewable energy projects in Andhra Pradesh. It outlines the state commission's role in promoting renewable generation under the Electricity Act of 2003. Key points include a renewable purchase obligation of 5% for distribution licensees from 2005-2008, with 0.5% reserved for wind. Tariffs were determined in 2004 and incentives were provided, like banking privileges for mini-hydel and wind projects. The order rationalized tariffs for various renewable technologies.
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The Energy Regulation Board (ERB), with the support of the USAID Trade Hub Southern Africa (SATH) has developed the draft Renewable Energy Feed in Tariffs (REFiT) Regulatory Framework. The REFiT Regulatory Framework was developed in line with REFiT Policy of 2015 developed by the Ministry of Mines Energy and Water Development. The REFiT regulatory framework was presented to stakeholders on Tuesday 22nd September 2015.
The REFiT Regulatory framework outlines the following:
REFiT Indicative Tariffs for solar projects;
Rules and Guidelines for RE projects to be implemented under the REFiT Policy of 2015; and
Guidelines for REFiT Power Purchase Agreements, and application procedures for project developers.
These rules and guidelines are only applicable to small scale renewable energy systems as defined in the REFiT Policy of 2015.
The document is a determination by the National Electric Power Regulatory Authority (NEPRA) of Pakistan regarding a proposed modification to the generation license of K-Electric Limited (KEL).
NEPRA approved adding re-gasified liquefied natural gas (RLNG) as an alternate fuel for KEL's generation facilities. This was proposed by KEL due to declining natural gas supply from the Sui Southern Gas Company and to ensure optimal use of existing generation assets. Some stakeholders expressed concerns about the potential tariff impact and need for evaluation of plant efficiencies using RLNG. NEPRA will enforce performance standards and protect consumer interests related to increased costs from using the more expensive RLNG fuel.
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This document summarizes a research project on a proposed 45 MW solar power project in Bulgaria. It includes the following key points:
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- The document provides background on Bulgaria's energy market structure, existing renewable energy capacity, and benchmarking of solar capacity in European countries.
- Details of the proposed solar power plant project are given, including location, technology, investment costs, and observations from the researcher on potential improvements.
- Areas for further research are identified such as evaluating successful and unsuccessful practices of past Korean renewable investments in Bulgaria and assessing implications of current
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Paving The Path for a Greener Future via Presidential Regulation Number 112/2022.pdf
1. Legal Brief
Paving The Path for a Greener Future
via Presidential Regulation Number
112/2022
MAY, 2024
2. Background
A H R P L e g a l B r i e f
Key Legal Basis
In December 2015,representation of
Indonesian Government attended the
conference held by United Nation
Framework Convention on Climate
Change (“UNFCCC”) to contribute in an
endeavor to stabilize the greenhouse
gas concentration in the atmosphere
Result of the UNFCCC
Conference stipulated in the
Paris Agreement
Aim of the Paris Agreement
Indonesian Government ratified
the Paris Agreement under Law
Number 16 of 2016 on Ratification
of Paris Agreement to the
UNFCCC (“Law 16/2016”)
Indonesian Government enacted
Presidential Regulation Number
112 of 2022 on Acceleration of
Renewable Energy Development
for Power Supply (“PR 112/2022”)
1
2
3
4
In essence, the aims of the Paris Agreement are shrined under Article 2 of the Paris Agreement, namely:
1. Holding the increase in global average temperature below 2o C above pre-industrial levels and pursuing efforts to
limit the rise in temperature to 1.5o C above pre-industrial levels;
2. Enhancing the capacity to adapt to the negative effects of climate change, enhancing climate resilience, and
developing low greenhouse gas emissions without endangering food production; and
3. Preparing a consistent financing scheme to support the development of low-emission and climate-resilient
innovations.
How is affected to Indonesia?
Indonesian Government sets up a target, via Nationally Determined Contribution (NDC), to reduce
carbon emission unconditional (with own endeavour) from 29% (twenty nine percent) up to 31,89%
(thirty-one-point eight nine percent) in 2030, and conditional (together with international cooperation)
from 41% (forty one percent) up to 43,2% (forty-three-point two percent).
Source: Enhanced Nationally Determined Contribution Republic of Indonesia
Document accessed via UNFCCC website
3. Welcoming the Renewable Energy Era:
Towards the End of Coal-Fire Power Plants (1/2)
A H R P L e g a l B r i e f
An Effort to Energy Transition and The Early Retirement of CFPPs
Ministry of Energy Mineral and
Resources
(“MoEMR”)
Ministry of Finance
(“MoF”)
Ministry of State-
Owned Enterprises
(“MoSOE”)
The Ministers prepare a roadmap for
accelerating the end of the operational period
of Coal Fire Power Plants (“CFPPs”), which is
outlined in a sectoral planning document
Reduction of greenhouse
gas emissions from CFPPs
a
Strategy for accelerating
the end of the operational
period of CFPPs
b
Alignment among various
other policies
c
Art. 3 (3) (a) PR 112/2022
Art. 3 (3) (b) PR 112/2022
Art. 3 (3) (c) PR 112/2022
Art. 3 (2) PR 112/2022
Exemption Alert
a. CFPPs that have been stipulated in the Electricity Supply Business Plan prior to the enactment of this Presidential Regulation; or
b. CFPPs that meet the following requirements:
1. integrated with industries that are developed to enhance the added value of natural resources or included in National Strategic
Projects that significantly contribute to job creation and/or national economic growth;
2. committed to reducing greenhouse gas emissions by at least 35% (thirty five percent) within 10 years of operation compared to the
average emissions of CFPPs in Indonesia in 2021 through the development of technology, carbon offset, and/or the integration of
renewable energy; and
3. Operating no later than the year 2050.
The development of new CFPPs is still allowed, however there are some consideration under PR 112/2022, which are as follows:
In an effort to increase the proportion of Renewable Energy in the electricity energy mix, PT PLN (Persero) accelerates the termination of:
a. the operation of its own coal-fired power plants; and/or
b. the Power Purchase Agreement (“PPA”) contracts of coal-fired power plants developed by Independent Power Producers (“IPPs”),
The replacement of the electrical energy can be achieved with renewable energy generators, considering the conditions of electricity supply
and demand.
Art. 3 (4) PR 112/2022
Art. 3 (5) and (6) PR 112/2022
The implementation of the accelerated termination of the operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs, as referred to
in Art. 3 (5) PR 112/2022 by PT PLN (Persero), takes into account at least the following criteria:
a. capacity;
b. age of the power plant;
c. utilization;
d. greenhouse gas emissions of the coal-fired
power plant;
e. economic added value;
f. availability of domestic and international financial support; and
g. availability of domestic and international technological support.
Art. 3 (7) PR 112/2022
MoF may provide fiscal support via financing frameworks, including blended finance sourced from the state budget and/or other legitimate
sources aimed at accelerating the energy transition, in the event of:
a. accelerate the termination of the operation of its own CFPPs and/or the PPA of CFPPs developed IPPs; or
b. accelerate the termination of the operation of its own CFPPs and/or the PPA of CFPPs developed by IPPs that require replacement with
Renewable Energy generators.
Art. 3 (9) and (10) PR 112/2022
4. Welcoming the Renewable Energy Era:
Towards the End of Coal-Fire Power Plants (2/2)
A H R P L e g a l B r i e f
In the first place requires written
approval from MoF and MoSOE
before being stipulated by MoEMR to
be ceased its operation.
CFPPs that undergo acceleration to be terminated
of its operation of its own CFPPs and/or the PPA of
CFPPs developed by Independent IPPs
CFPPs that undergo acceleration to be terminated
of its operation of its own CFPPs and/or the PPA
of CFPPs developed by IPPs that require
replacement with renewable energy generators
Art. 3 (9) (a) PR 112/2022
Art. 3 (9) (b) PR 112/2022
Under the regime of PR 112/2022. Renewable Energy Sources are
defined as the energy sources produced from sustainable energy
resources when managed properly, such as geothermal heat, wind,
bioenergy, sunlight, water flow and waterfalls, as well as ocean
movements and temperature differences in ocean layers.
The following are power plants from which PT PLN (Persero) could be
able to purchase electricity by utilizing renewable energy sources.
a. Hydroelectric Power Plants;
b. Geothermal Power Plants;
Art. 4 (1) PR 112/2022
Art. 4 (2) PR 112/2022
c. Biofuel Power Plants;
d. Wind Power Plants;
e. Biomass Power Plants;
f. Biogas Power Plants;
These power plants can be
power plants that are
entirely built by business
entities or entirely or partly
built by the central
government or local
governments, including
those originating from
bequest.
Art. 4 (3) PR 112/2022
In purchasing electricity
from power plants that
utilize renewable energy
sources as referred to in
Art. 4 (2) PR 112/2022, the
purchasing plan shall refer
to the Electricity Supply
Business Plan/ Rencana
Usaha Penyediaan Tenaga
Listrik (RUPTL)
g. Ocean Energy Power Plants; and
h. Photovoltaic Solar Power Plants.
Art. 4 (4) PR 112/2022
The purchase of electricity from Geothermal Power Plants includes
the purchase of geothermal steam equivalent to electricity for
Geothermal Power Plants.
Art. 4 (5) PR 112/2022 Art. 4 (6) PR 112/2022
The purchase of electricity from Photovoltaic Solar Power Plants
includes the purchase of electricity from floating solar power plants.
5. Pricing Mechanism for Renewable Energy-Based
Electrical Power
The purchase price of electrical power will be evaluated annually
by considering the latest average contract price of PT PLN
(Persero), which shall be conducted by MoEMR, MoF, and
MoSOE.
A H R P L e g a l B r i e f
The Purchase Price of Electrical Power from Power Plants
The purchase price means the price at the meeting point between the electrical equipment at the electrical power plant installation and the electrical power supply
installation equipment (generator busbar) and does not include the price of electrical power network facilities.
Shall be determined based on the agreement of the parties at a maximum of 30% (thirty percent) of the purchase price of electrical power and shall be
considered as an approval from the MOEMR. In the event that the price of electrical power grid facilities is more than 30% (thirty percent) of the
purchase price of electrical power, a price approval from the MoEMR must be obtained.
Photovoltaic Solar Power Plants or Wind Power Plants for all capacities that are equipped with batteries or other electrical energy storage facilities, the
price of battery facilities or other electrical energy storage facilities shall be determined based on the maximum benchmark price of 60% (sixty percent)
of the purchase price of electrical power and shall be considered as an approval from the MoEMR. In terms of the price of batteries or other electrical
energy storage facilities as is more than 60% (sixty percent) of the purchase price of electrical power, a price approval from the MoEMR must be
obtained.
The maximum benchmark price as stipulated by the Appendix I of PR 112/2022
(i) negotiation with the ceiling limit based on the maximum benchmark price;
(ii) without escalation during the PPA term; and
(iii) apply as a price approval from the MoEMR.
(i) negotiation with the ceiling limit based on the maximum benchmark price;
(ii) valid as the floor price;
(iii) escalation provisions may apply during the PPA and Agreements for the Sale
and Purchase of Geothermal Coal-fired Steam term; and
(iv) apply as a price approval from the MoEMR.
Applicable conditions for Geothermal Power Plant:
Applicable for Power Plants which are Entirely Built by Business Entities, such as:
• Biomass Power Plants;
• Biogas Power Plants; and
• Photovoltaic Solar Power Plants
• Hydroelectric Power Plants;
• Geothermal Power Plants;
• Wind Power Plants
Applicable for Power Plants which are Entirely or Partially Built by the
Government including those Originating from Grants, such as:
• Hydroelectric Power Plants;
• Geothermal Power Plants;
• Wind Power Plants;
Conditions for applying maximum benchmark price:
• Biomass Power Plants;
• Biogas Power Plants; and
• Photovoltaic Solar Power Plants
The agreement price, with or without the location factor
The purchase price of Electrical Power based on the agreed price
shall be implemented through a negotiation and must obtain a price
approval from the MoEMR.
Applicable for Power Plants which are Entirely Built by
Business Entities, such as:
• Hydroelectric Power Plants (as a peaker);
• Biofuel Power Plants; and
• Ocean Energy Power Plants
Applicable for Power Plants which are Entirely or Partially Built
by the Government including those Originating from Grants,
such as:
• Biofuel Power Plants; and
• Ocean Energy Power Plants
The Price of Electrical Power Grid Facilities
The Price of Battery or Other Electrical Energy Storage Facilities
PT PLN (Persero) may purchase excess energy from IPPs that utilize renewable energies. The term of the excess power sale and purchase
agreement shall be implemented for a minimum period of 3 (three) years and may be extended.
Source: Chapter II PR 112/2022
a b
Art. 6 jo. Art. 9 (1) jo. Art. 12 (1) PR 112/2022
Art. 6 (3) jo. Art. 9 (2) jo. Art. 12 (2) PR 112/2022
Art. 5 (4) PR 112/2022
6. Procurement of Renewable Energy-Based
Electrical Power (1/2)
A H R P L e g a l B r i e f
Direct Appointment
For the direct appointment of electricity purchases from:
a. Hydropower plants utilizing water from reservoirs, dams, or
irrigation channels, whose construction is multipurpose and
involves state-owned assets managed by the Directorate
General of Water Resources, Ministry of Public Works and
Housing, for all plant capacities; and
b. Geothermal power plants operated by holders of
Geothermal Permits, which serve as the designated entities
for electricity purchases.
Key Takeaways:
Direct Selection
The purchase of electricity through direct selection for all plant
capacities, is conducted for electricity purchases from:
a. Hydropower plants;
b. Photovoltaic solar power plants or wind power plants, with or
without battery facilities or other electrical energy storage
facilities, whether on government-provided land or using privately
owned land;
c. Biomass power plants or biogas power plants; and
d. Hydropower plants functioning as peakers, biofuel power plants,
or ocean energy power plants.
Art. 14 (3) PR 112/2022
The process of purchasing electricity through direct appointment
involves submitting documents and completing the Power
Purchase Agreement or Perjanjian Jual Beli Listrik (“PPA”)
signing, including document evaluation, within a maximum of 90
(ninety) calendar days.
The document evaluation mentioned above consists of
assessments in the following areas:
a. administrative;
b. technical; and
c. financial.
Art.15 PR 112/2022
Art. 14 (4) PR 112/2022
The purchase of electricity through direct selection is conducted by
offering the lowest price based on the highest benchmark price,
ensuring the process is transparent and fair without granting
privileges to any party.
Furthermore, the process of purchasing electricity through direct
selection begins with the submission of documents and ends with the
signing of the PPA, including document evaluation and price
negotiation, which must be completed within a maximum of 180 (one
hundred eighty) calendar days. Further details regarding the
procurement process through direct selection will be explained in
Slide 7 of this Legal Brief.
Art. 16 PR 112/2022
In the event that there is only one participating business entity after direct selection and re-
selection, the electricity purchase will be conducted through direct appointment. The
purchase price for electricity in this case will be determined through negotiation, with the
upper limit based on the highest benchmark price.
Art. 14 (5) & (6) PR 112/2022
• Hydropower plants that utilize water from reservoirs, dams, or irrigation channels, especially if these are multipurpose
projects managed by the ministry responsible for water resources;
• Geothermal power plants;
• Expansion projects for geothermal, hydro, photovoltaic solar, wind, biomass, or biogas power plants; and/or
• Excess power from hydro, biomass, or biogas power plants.
Under PR 112/2022, there are two methods for procuring electricity from renewable energy power plants, regardless of their capacity: direct
selection and direct appointment.
Generally, renewable energy projects are procured through direct selection. However, there are exceptions where direct appointment is
used:
7. Procurement of Renewable Energy-Based
Electrical Power (2/2)
A H R P L e g a l B r i e f
Direct Selection Procurement Process in PLN
The internal division of PLN
approves the RfP document
and the PPA draft
Procurement of the RfP
documents by prospective
business entities
Explanation meeting
Preparation of the RfP required
documents by tender
participants
Evaluation of the RfP and
clarification of administrative,
financial, and technical aspects
Evaluation of the
best price
Announcement of
the Prospective PPL
who has been
selected as the
winner
Objection
Preparation for FS
completeness and
Grid Study
documents
Evaluation of FS and
Grid Study
documents
Letter of Intent for
the Appointment
of the PPL
Signing of the PPA
The relevant PPA must be accompanied by:
1. Performance guarantee of 10% of the total investment until COD;
2. Electricity Supply Business License for Own Use or Izin Usaha Penyediaan
Tenaga Listrik untuk Kepentingan Sendiri ("IUPTLS"); and
3. Other completeness according to each renewable energy power plant.
Yes
No
No
Inviting prospective Power Plant
Developers or Pengembang
Pembangkit Listrik (“PPL”) listed in
the Selected Provider List (“SPL”)
Minutes of Approval
for the Results of
Direct Selection
Elimination
2
3
4
5
a
b 6
7
a
8
9
10
11
Notes:
: executed by procurement committee
: executed by PT PLN’s internal
: executed by bidders
: procurement process
: the end of procurement process
1A 1B
8. Government Incentives for Renewable Energy-Based
Power Plants
A H R P L e g a l B r i e f
Things to Note:
The Minister of Agrarian and Spatial Planning/National Land Agency and the Minister of Public Works and Public Housing are
mandated to provide support by prioritizing the development of electricity generating facilities based on Renewable Energy Sources
(EBT) in the national spatial planning allocation, as well as facilitating land-related permits and construction permits in order to reduce
investment costs for renewable energy utilization.
Article 23 (4) & (6) PR 112/2022
Provision of Government Facilities
In developing power plants that utilize
renewable energy sources, business
entities are granted incentives in both
fiscal and non-fiscal forms.
01
Art. 22 (1) PR 112/2022
Forms of Fiscal Incentives
• Income tax facilities;
• Import facilities such as exemption
from import duties and/or taxes;
• Land and building tax facilities;
• Support for geothermal development;
and/or
• Financing and/or guarantee facilities
through SOEs.
02
Art. 22 (2) PR 112/2022
Provision of Non-Fiscal Incentives
Non-fiscal incentives in this context are
provided by the Central Government and/or
Local Governments according to their
respective authorities and in accordance
with the provisions of the prevailing laws
and regulations.
04
Art. 22 (3) PR 112/2022
Support from Ministries/Agencies
The Minister of Energy and Mineral
Resources, relevant ministers, heads of
agencies, or local governments must
provide the necessary support for the
development of power plants utilizing
renewable energy sources, in accordance
with their respective authorities. Further
elaboration on this matter can be found in
Article 23 (2) to (13) PR 112/2022.
03
Art. 23 (1) PR 112/2022
Compensation for PLN
In the event that the purchase of electricity
from power plants utilizing renewable
energy sources by PT PLN (Persero) leads
to an increase in the basic cost of
electricity generation, PT PLN (Persero)
must be compensated for all expenses
incurred. The payment will be made in
accordance with the financial capability of
the state based on the provisions of the
prevailing laws and regulations.
05
Art. 24 PR 112/2022
Support for Geothermal Energy
In purchasing electricity from Geothermal
Power Plants, the Government may provide
support for the development of geothermal
energy in the form of: (i) assignment for
additional geothermal data and information;
(ii) assignment for preliminary surveys and
exploration; (iii) risk mitigation (derisking);
and (iv) financing facilities.
06
Art. 27 (1) PR 112/2022
9. Government support and/or government guarantees may be provided in
accordance with the provisions of law and regulations on the cooperation
between the government and business entities in infrastructure procurement.
A H R P L e g a l B r i e f
Incentives provided by the MoF to support the acceleration of the termination of CFPPs operation, acceleration of termination of PPAs of CFPPs,
and/or the development of renewable energy plants as a substitute for the acceleration of the termination CFPPs operation and/or acceleration of
termination of PPAs of CFPPs.
How Does Government Incentives in Financing the Energy Transition Platforms Work?
Funding Sources for Energy Transition Platform Facilities
a. State budget, by considering the state’s financial capacity;
b. Funding cooperation which consists of: (i) international financial institutions; and/or (ii) other institutions/agencies, by taking into account the
provisions on the fulfillment of criteria to be able to utilize the Energy Transition Platform facility and/or other related activities based on the funding
cooperation agreement; and/or
c. other forms of cooperation aside from the funding cooperation.
Related Parties
A role assigned to PT SMI (Persero), which has the following duties:
• coordinate with stakeholders in the management of the Energy
Transition Platform;
• assess the application for the provision of the Energy Transition
Platform facilities;
• provide recommendations to the Steering Committee based on the
assessment result as referred t in letter b;
• seek funding sources other than the State Budget which are allocated
for the Energy Transition Platform;
• provide Energy Transition Platform facilities to projects that meet the
requirements;
• conduct an evaluation of cooperation with third parties and report the
evaluation result to the Steering Committee; and
• provide input and/or consideration to the Steering Committee, if
necessary.
Established by MoF, which has the following duties:
• determine the projects that will be submitted in order to obtain the Energy
Transition Platform facility, including deciding the priority of utilization of
the Energy Transition Platform;
• propose a recommendation for the Energy Transition Platform facility
scheme;
• evaluate the policies and management of the Energy Transition Platform
as well as provide directions from the results of said evaluations;
• coordinate the settlement of Energy Transitional Platform management
issues; and
• develop inter-ministerial cooperation related to energy transition.
In order to assist in the implementation of duties and authorities of the
Steering Committee, MoF shall establish technical team and secretariat of
the Steering Committee to assist the Steering Committee.
Platform Manager Steering Committee
Facilities Provided
Loan Facilities or Other Forms of Financing Facilities through the Government Cooperation Scheme
with Business Entities
Government may grant assistance in the form of:
• implementation of government investment;
• government guarantees (from international financial institutions to
SOEs); and/or
• other supports as regulated in laws and regulations in the fiscal
sector.
Art. 24 (1) and (2) MoFR 103/2023 Art. 24 (1) and (5) MoFR 103/2023
Art. 3 (1) and (4) MoFR 103/2023
Art. 1(1) MoFR 103/2023
Art. 17 (1) MoFR 103/2023
Art. 12 (1) MoFR 103/2023
Art. 13 (1) MoFR 103/2023
Government Incentives in Financing the Energy
Transition Platforms (1/2)
Based on Article 3 paragraph (9) of Regulation of PR 112/2022 the government may provide fiscal support through funding and financing frameworks,
including blended finance aimed at accelerating the energy transition. To accommodate such, MoF issued MoF Regulation Number 103 of 2023 on the
Provision of Fiscal Support through the Funding and Financing Framework for the Acceleration of Energy Transition in the Electricity Sector (“MoFR
103/2023”).
10. The applicable criteria:
a. CFPP is owned by PT PLN (Persero), a subsidiary of PT PLN
(Persero), or private business entities;
b. in conformity with the roadmap for the acceleration of the
operational period termination of CFPP as prepared by the
MoEMR; and
c. taking into account the policies of the MoF.
Government Incentives in Financing the Energy
Transition Platforms (2/2)
A H R P L e g a l B r i e f
Eligible Power Plants to Enjoy Energy Transition Platform Facilities
CFPP project in which: (i) its operational period is terminated
early; or (ii) its PPA period is terminated early
1
Renewable energy plant development project as a replacement
for CFPP project which is terminated early
2
Art. 4 (1) (a) and (b) jo. Art. 5 MoFR 103/2023
The applicable criteria:
a. is included in the electricity supply business plan, both located
inside and outside the business area of PT PLN (Persero);
b. has the availability of technological support that has been running
and tested domestically and abroad for the development of
renewable energy plants;
c. is included in the project that may be categorized as green projects
or yellow projects based on Indonesia Green Taxonomy
documents issued by the Financial Services Authority;
d. is committed to implementing the principles of Environmental,
Social, and Corporate Governance (ESG) in the implementation of
electricity supply business activities; and/or
e. taking into account the policies of the MoF and MoEMR.
Art. 6 MoFR 103/2023
Eligible Parties to Enjoy Energy Transition Platform Facilities
PT PLN (Persero) and its subsidiaries
Business entities which hold license for
electricity supply business activities
Shareholders of entities which hold
license for electricity supply business
activities
Sponsors of business entities which hold
license for electricity supply business activities
Investors
Other prospective recipients of the relevant
Energy Transition Platform facilities
Source: Art. 25 (1) MoFR 10/2023
11. Transitional Provision of PR 112/2022
A H R P L e g a l B r i e f
At the time, PR 112/2022 comes into effect:
a. Power Purchase Agreements (PPAs) that have been signed; and
b. Power Purchase Agreements (PPAs) that have been signed,
before PR 112/2022 comes into effect, are declared to remain valid until the end of the PPAs.
Business entities that have obtained:
a. approval of electricity price and/or assignment of electricity purchase from the Minister, but have not yet signed the PPA; and/or
b. approval of geothermal steam price from the MoEMR, but have not yet signed the Power Purchase Agreement for Geothermal
Steam (“PPAG”),
the implementation process of electricity price and/or electricity purchase or geothermal steam price shall be carried out in
accordance with the provisions of the legislation before the PR 112/2022.
Art. 30 PR 112/2022
Art. 31 PR 112/2022
Art. 32 PR 112/2022
a. Negotiation processes among the parties before PR 112/2022 comes into effect may continue until an agreement on the
purchase price of electricity or the purchase price of steam for Geothermal Power Plants is reached.
b. In the event of an agreement on the purchase price of electricity or the purchase price of steam as mentioned in paragraph (1):
i. equal to or lower than the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for
Geothermal Power Plants as stipulated in the PR 112/2022, changes to the PPA or PPAG may be signed by the parties
without the MoEMR’s approval; or
ii. higher than the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for PLTP as
stipulated in the PR 112/2022, the agreement on the purchase price of electricity from Geothermal Power Plants or the
purchase price of steam for Geothermal Power Plants shall obtain the MoEMR's approval before changes to the PPA or
PPAG are signed by the parties.
c. The agreement on the purchase price of electricity from Geothermal Power Plants or the purchase price of steam for Geothermal
Power Plants as mentioned in point (a) must be reached no later than 6 (six) months after PR 112/2022 comes into effect.
d. In the event that no agreement is reached within 6 (six) months as mentioned in point (c) settlement will be conducted according
to the renegotiation mechanism agreed upon in the PPA or PPAG.
Business entities that:
a. have obtained the Geothermal Permit/Izin Panas Bumi before PR 112/2022 comes into effect; and
b. have not yet obtained the approval of electricity price from the MoEMR,
the implementation process of electricity purchase and the price of electricity purchase shall be carried out in accordance with the
provisions of PR 112/2022.
Art. 33 PR 112/2022
Business entities that:
a. have been designated as the administrator of water resources for power generation or designated as prospective developers of
Hydroelectric Power Plants before the PR 112/2022 comes into effect; and
b. have not yet signed the PPA with PT PLN (Persero),
the implementation process of purchasing electricity will utilize a direct appointment mechanism and provisions regarding the
purchase price of electricity in accordance with the provisions of the PR 112/2022.
Art. 34 PR 112/2022
12. Hanif Julianto Firman
hanif@ahrplaw.com
We will continue to follow the developments on this topic and provide additional information as it
becomes available. If you have any questions on this topic, please contact:
Indira Jauhara Pratiwi
indira@ahrplaw.com
Cut Hasri Nabila
nabila@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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