A small-scale renewable energy project that has signed a power purchase agreement (PPA) in 2017 but has not received funding is threatened to be terminated

JAKARTA. New and Renewable Energy (EBT) power plant projects that have signed buying and selling contacts or the 2017 Power Purchase Agreement (PPA) are still hampered by funding. As a result, contracts from a number of green energy projects are threatened to be terminated or terminated.

Strategic Procurement Director 1 PT PLN (Persero) Sripeni Inten Cahyani admitted, there is still a 2017 EBT PPA project which is still constrained by funds. Unfortunately, Inten was still reluctant to specify the number of projects and their capacity.

However, Inten said that most of them came from small-scale Mini Hydro Power Plants (MHPP) under 10 Megawatts (MW). Therefore, continued Inten, the projects were processed by regional PLN according to the project development location in question.

“Capacity under 10 MW is carried out in the parent and regional units. Over 10 MW is carried out by the Central PLN,” explained Inten.

As a result, termination of each project that still has funding difficulties has a different time. “Each region is different (termination period), some are given a final June limit, July or September,” said Inten.

Nevertheless, ESDM Director General of Energy and Mineral Resources of the ESDM Ministry Harris is optimistic, even though there are a number of EBT projects whose funding difficulties are even terminated, but these conditions will not affect the clean energy mix target.

Based on data presented by Harris, the EBT generating project still shows progress. Without detailing the details of the project, Harris revealed that out of a total of 75 PPA EBT generating projects during 2017-2018, there were already 8 projects that had been operating commercially or Financial Close (FC) with a total capacity of 37.35 MW.

For those in the construction phase, the number reaches 35 projects with a total capacity of 834.71 MW. While for FC preparations as many as 30 projects, with details of 9 projects that have effective PPA amounting to 400.1 MW, and not yet an effective PPA of 21 projects with a capacity of 304.72 MW.

Meanwhile, for the terminated contracts there are 2 projects with a capacity of 4.2 MW. “There is still progress, from the position of the first semester of 2019 to July,” Harris explained.

As a result, Harris is still optimistic that the energy mix of electricity generation from clean energy can continue to grow. Moreover, so far this year until next year, it is estimated that there will be the procurement of 157 EBT power plants with a total capacity of 4,718.14 MW.

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