Indonesian Government Puts the Squeeze on Renewable Energy Tariffs
The Indonesian Government last week introduced a new regulation setting the tariff framework for Indonesian renewable energy projects. Regulation of Minister of Energy and Mineral Resources No. 12/2017 on the Utilization of Renewable Energy Resources for Electricity Supply (MEMR Reg 12) now sets out the tariff framework for the following types of renewable energy projects.
MEMR Reg 12 regulates both the price at which electricity generated from these renewable energy sources is to be sold to the Indonesian State-owned power utility, PT PLN (Persero) (PLN), and also the manner in which PLN is entitled to procure electricity supply from a number of these renewable sources.