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On 4 August 2016, Ministry of Energy and Mineral Resources (MEMR) Regulation No. 21 of 2016 on the Purchase of Electric Power from Biomass and Biogas Power Plants by PT Perusahaan Listrik Negara (PLN) was enacted (Regulation 21). Regulation 21 replaces MEMR Regulation No. 27 of 2014 on the Purchase of Electric Power from Biomass and Biogas Power Plants by PLN. The structure of Regulation 21 is modelled in a very similar manner to the recent regulations issued in respect of mini-hydro projects, and shares a number of the same features:

  • a feed-in tariff to apply to biomass and biogas power plant projects, priced in US$, without escalation and not subject to any negotiation
  • the feed-in tariff levels being differentiated depending on the location of where the projects are being developed (on the general principle that projects in less-developed areas enjoy a higher feed-in tariff than projects developed in developed areas such as West Java) and
  • a mandatory timeline for the award and completion of biomass and biogas power plant projects
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