Renewable energy regulation enacted, government will retire coal powered plants

Jakarta – President Joko Widodo (Jokowi) has issued Presidential Regulation (Perpres) No. 112 of 2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity, which has been in effect since it was signed by President Joko Widodo, Wednesday (13/9).

Previously, the Ministry of Energy and Mineral Resources (ESDM), on Wednesday said the new presidential regulation would regulate geothermal prices specifically in Java.

Presidential Decree 112/2022 will also retire the operation of the steam power plant (PLTU). However, the development of a new PLTU is still allowed as long as it is integrated with an industry that is oriented towards increasing the added value of natural resources or is included in the National Strategic Project that has a major contribution to job creation and/or national economic growth.

The development of a new PLTU is also still allowed and “operates no later than 2050”, if it is committed to reducing greenhouse gas emissions by at least 35% within a period of 10 years from the time the PLTU operates, compared to the average PLTU emission in Indonesia in 2021 through technology development, carbon offset, and/or renewable energy mix.

PLN, which has been assigned the task of retiring the steam power plant, in the presidential regulation is asked to accelerate the termination of the operating time of its own PLTU and/or the power purchase agreement (PJBL) contract developed by the power plant developer (PPL) taking into account the conditions of supply and demand for electricity.

The purchase price of electricity from a geothermal steam power plant (PLTP) is determined based on the highest benchmark price depending on capacity and duration of operation. (Hartatik)

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