13 renewable energy projects commence operation

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily: 13 proyek energi terbarukan mulai beroperasi

16 October 2019

By: Ayu

Jakarta, investor.id – The Energy and Mineral Resources Ministry recorded 13 operational renewable energy projects that are part of the 75 sales and purchase agreements signed from 2017 to 2018. The total capacity of the operational power plants is 68.25 megawatts.

Director of Various New Energy and Renewable Energy of the Directorate General of New, Renewable Energy and Energy Conservation of the Energy and Mineral Resources Ministry Harris said that there were 8 operational renewable energy projects, and 35 projects were in construction. However, several projects have finished construction.

“The most updated [information] information is that there were 8 projects that have been commercially operational, but there are 13 projects now,” he said in Jakarta on Tuesday (15/10).

Out of the 13 projects, 11 projects are signed in 2017, while 2 projects are signed in 2018. The projects are located in Sumatra, Java, Kalimantan, Lombok, and Minahasa.

The 13 projects are Pakkat PLTA (Hydropower Plant) with a capacity of 18 MW, Nengar PLTM (Micro-hydro Power Plant) (excess power) with 1 MW capacity, Tanjung Tirta PLTM with 8 MW capacity, Kincang I PLTM with 0.35 MW, Motra Puding Mas PLTBg (Biogas Power Plant) (Excess Power) with 2 MW capacity, Tempilang PLTBm (Biomass Power Plant) with 6 MW capacity, Sengkol PLTS (Solar Power Plant) with 5.5 MW capacity, Selong PLTS with 5 MW capacity, Pringgabaya PLTS with 5 MW capacity, Kunci Putih PLTM with 0.9 MW capacity, Likupang PLTS with 15 MW capacity. Then, the two projects that have signed the sales and purchase agreement in 2018 are Sawit Manunggal PLTBg (Excess Power) with 1 MW capacity, and Sita PLTM with 1 MW capacity.

Hence, there are only 30 projects in construction. The other 32 projects are still in the financial closing stage. Several projects have secured banks to provide loans, but they still have not fulfilled the conditions to reach financial close. Several projects are still looking for funding. Sales and purchase agreement of several projects has taken effect, but they are still in a process to reach financial close. Several projects are still preparing their performance and bid bonds, or their sales and purchase agreement has not taken effect yet.

In total, the capacity of the 75 projects which are signed from 2017 to 2018 is 1,581 MW. There are 5 PLTA projects with a capacity of 1,104 MW, 6 PLTBg projects with a capacity of 10.8 MW, 6 PLTBm projects with a capacity of 42.4 MW, 6 PLTS projects with a capacity of 45 MW, 1 PLTP (Geothermal Power Plant) with a capacity of 86 MW, 50 PLTM projects with a capacity of 287.8 MW, and 1 undisclosed project with a capacity of 5 MW.

Harris revealed that there were several projects that indicated that their contract would be terminated by PLN. Unfortunately, he is reluctant to reveal the projects. He added that several projects had not secured the interest of financial institutions to fund the project. “There are terminated [projects], and there are several projects threatened to be terminated, but the [total] capacity [of those projects] is only 277.2 MW,” he said.

The fate of those renewable projects is in PLN’s hands as discussion regarding the power purchase agreement of those renewable projects is considered as business. If independent power producers show good intention and seriousness to continue the process, PLN may provide an opportunity.

“Even if there is no progress, if [the projects] are seen to be serious in looking for a funding and the matter of land [acquisition] is being processed, I think that PLN will take notice,” Harris said.

If the projects are decided to be terminated, Harris mentioned that it did not mean that the renewable energy projects would stop. The projects can continue with other renewable energy developers. “If [the projects are] terminated by PLN, the projects will be in a re-tender, if the area still needs an [electric power] system,” Harris said.

Indonesia set the target of new renewable energy portion to reach 23% in the 2025 national energy mixture. In the electricity sector, the portion of these green energies must reach 45,200 MW. However, until now, the capacity of renewable energy power plants only reaches 12,156 MW.

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