Jakarta – The Institute for Essential Services Reform (IESR) considers that the private sector also has the opportunity to issue New Renewable Energy (NRE) certificates or Renewable Energy Certificate (REC). The issuance of REC has so far been monopolised by PT PLN (Persero), even though until now there has been no regulation regarding REC.
“Currently REC is monopolised by PLN, which claims that they use international standards. The private sector should also be able to do this,” said IESR Director Fabby Tumiwa in a written release, Monday (8/8).
Moreover, the current REC scheme by PLN tends to be an instrument for greenwashing or to obtain product attributes that are produced using electricity from energy plants, he said. This step is not in line with REC’s original goal to encourage the use of renewable energy. For this reason, the government should regulate REC, said Tumiwa. These rules can be contained in the NRE Bill which is currently in the process of being discussed in the legislature.
“It should not only be PLN that can claim and issue REC but also the private sector. IPP should not be forced by PLN to submit attribution of emission reductions in the form of REC to PLN,” said Tumiwa who is also the General Chair of the Indonesian Solar Energy Association (AESI).
According to him, this could have been possible if previously there had been an agreement in the Power Purchase Agreement (PPA). He said, there needs to be a special independent body formed to verify the issuance of REC in the future. “PLN’s REC must be evaluated and (temporarily halted),” he added.
PLN currently limits consumers from using roof solar-powered generators. Even though these consumers are RE100 companies, or companies that are committed to 100% renewable electricity. In a circular signed by the Executive Vice President of IPP PLN I Nyoman Ngurah Widiyatnya, PLN emphasised the right to attribution of energy from NRE plants to Independent Power Producers (IPP).
In the letter numbered 43803/KEU.01.02/D01020300/2022 dated August 2, 2022, PLN confirms that all electricity is purchased by PLN and the project economic viability has been guaranteed by PLN so that the issuance of REC and sources of renewable power in the PLN electricity system (both PLN power plants) or IPPs are only carried out by PLN. In the letter, IPPs are not allowed to sell Green Energy attributes directly to the market. (Hartatik)
