Power Produced by Solar Panels to be Paid in Full under New Ministerial Regulation

Friday, 21 January 2022 - Dibaca 5737 kali

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 35.Pers/04/SJI/2022

Date: 21 January 2022

Power Produced by Solar Panels to be Paid in Full under New Ministerial Regulation


In a bid to meet the 23% renewables target by 2025, the Ministry of Energy and Mineral Resources (EMR) has issued Regulation of Minister of Energy and Mineral Resources Number 26 of 2021 on Rooftop Solar Systems that are Connected to the Grids of the Holders of Electricity Supply Business License for Public Interest.

"Ministerial Regulation Number 26 of 2021 on Rooftop Solar Systems is supported by all stakeholders according to the results of a coordination meeting led by Coordinating Minister for Economic Affairs on January 18, 2022," said Director General of New, Renewable Energy and Energy Conservation of the Ministry of EMR, Dadan Kusdiana, in Jakarta on Friday (21/01).

A number of issues that called attention for the ministerial regulation implementation were agreed during the meeting. Those issues with national impacts include the potential for an increase in electricity generation costs (BPP), subsidies and compensation, potential loss of PT PLN's sales, and potential revenue from capacity charge.

The growth in electricity demand will affect subsidies and compensation, and eventually, have an impact on the state budget. The higher the demand for electricity, the smaller the impact on subsidies and compensation. This is a key issue to speed up the government's program of creating electricity demand.

The Ministry of EMR has made forward projections that the 3.6 MW rooftop solar project to be carried out gradually until 2025 will bring about positive impacts, as follows:

  1. potentially create 121,500 jobs;
  2. potentially attract between Rp45 trillion and Rp63,7 trillion of investment in the physical construction of rooftop solar, and between Rp2.04 trillion and Rp4.1 trillion for the procurement of export-import meters;
  3. boost the growth of domestic supporting industries for rooftop solar and increase the competitiveness of local components;
  4. push green products in the service sector and green industry to avoid carbon border tax at the global level;
  5. reduce 4.58 million tonnes of CO2e;
  6. potentially generate Rp0.06 trillion of revenues annually from the Economic Value of Carbon (assuming a carbon price of USD2 per tonne of CO2e).

The main takeaways of Ministerial Regulation Number 26 of 2021 are as follows:

  1. The electricity sent to the grid (exported) is calculated at 100% of the amount exported, from previously 65%;
  2. The extra power exported to the grid can be accumulated for 6 months, from previously 3 months;
  3. The duration for rooftop solar permit application has been shortened (5 days if without adjustment to Power Purchase Agreement (PPA) and 12 days if with adjustment);
  4. An online application is used for permit application, reporting, and monitoring of rooftop solar systems;
  5. A chance to conduct carbon trading from rooftop solar systems;
  6. A customer service center will receive complaints from rooftop solar customers or Holders of the Business License to Supply Electricity for Public Interest (IUPTLU); and
  7. The provisions apply for the customers of PLN as well as non-PLN (IUPTLU Holders).

During the transition period, services for rooftop solar permit application will still be provided manually. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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