Presidential Regulation of the Republic of Indonesia concerning Acceleration of Renewable Energy Development for Electricity Supply
President Jokowi has stipulated Presidential Regulation No. 112 of 2022 concerning the Acceleration of Renewable Energy Development for the Provision of Electricity. Renewable Energy is energy that comes from renewable energy sources.
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| Presidential Regulation of the Republic of Indonesia concerning Acceleration of Renewable Energy Development for Electricity Supply |
The Government's consideration in issuing the presidential regulation is to increase investment and accelerate the achievement of the target of the renewable energy mix in the national energy mix in accordance with the National Energy Policy and reduce greenhouse gas emissions so that it is necessary to regulate the acceleration of the development of power plants sourced from renewable energy.
In the Presidential Regulation, it is stipulated that PT. PLN (Persero) as a business entity prepares a Business Plan for the Provision of Electricity (RUPTL), which is a plan for the procurement of Electricity covering the generation, transmission, distribution, and/or sale of Electricity to consumers in a business area.
The RUPTL is prepared by taking into account the development of Renewable Energy in accordance with the Renewable Energy mix target based on the general national electricity plan, the balance between supply and demand, and the economy of Renewable Energy generation. The RUPTL is determined by the Minister of Energy and Mineral Resources after coordinating with the Minister of SOEs and the Minister of Finance.
In implementing the RUPTL, PT PLN (Persero) is obliged to prioritize the purchase of Electricity from Power plants that utilize Renewable Energy sources, operate Power Plants that utilize Renewable Energy sources continuously (must-run) in accordance with the characteristics of the generating sources, and/or in accordance with the readiness of the local electricity system in the event of low load conditions, using domestic products in accordance with the provisions of laws and regulations, and developing power plants utilizing Renewable Energy sources.
The regulation also regulates the purchase price of Electricity from Electric Power plants utilizing Renewable Energy sources by PT PLN (Persero) which consists of the highest benchmark price or the agreed price. The highest benchmark price is listed in Attachment I to Presidential Regulation Number 112 of 2022.
The calculation of the purchase price of electricity from power plants utilizing renewable energy sources by PT PLN is carried out with or without taking into account the location factor (F).
For more details regarding the acceleration of the development of renewable energy for the provision of electricity, please read the regulation by downloading the following link: