PLN has recently issued an invitation for prequalification of developers interested in participating in future renewable Independent Power Projects in Indonesia. A copy of the PLN announcement is attached to this Client Alert.
What is the background to this new Prequalification process?
The recently passed Minister of Energy and Mineral Resources Regulation No 50/2017 requires PLN to carry out a “direct selection” process for the purposes of awarding IPPs for the following renewable energy technologies:
- solar PV;
- biomass and biogas;
- hydro; and
"Direct selection" means that PLN is required to carry out a limited tender process with minimum two bidders to award the relevant project (as opposed to running a full tender, open to anyone interested to participate). So the question that has lingered since the passing of Regulation 50 is – how does PLN define the category of developers who can participate in this "limited tender?" It appears that this new announcement by PLN is aimed at defining the "limited tender" group. So we would expect that any developer who successfully passes this prequalification process and is therefore registered on the "List of Selected Providers" will be entitled to participate in future limited tenders for awarding renewable projects. It follows that those developers that are not on the List of Selected Providers will not be entitled to participate in the limited tender.
To get the full pdf version of the alert, please click on the button below.