Indonesia offers Solar Power Project amount US$ 2 billion

JAKARTA - The Indonesian government by the Ministry of Energy and Mineral Resources (EMR/ESDM) will be auctioning off a number of projects of solar power plants (SPP) with a total capacity of 150 megawatts worth Rp19 trillion or arround US$ 2 billion in some parts of Indonesia.

Director General of Renewable Energy and Energy Conservation (DG REEC/EBTKE) Ministry of Energy and Mineral Resources Rida Mulyana said, that the auction  solar project was planned to be done in April 2013. It refers to the Regulation of the Minister of Energy and Mineral Resources on the selling price of electricity (feed in tariff) PLTS which will be published soon.

"Auction solar project will be made after EMR Chewing on a feed-in tariff. Early April 2013 Ministry Regulation EMR will be release, "he said in Jakarta, Friday (22/03/2013).

Rida said solar projects worth Rp19 trillion (arround US$ 2 billion) will be auctioned directly by DG REEC, because quotas SPP issued directly by the national government. After the completion of the auction, the winning bidder can immediately infrastructure development with a period of about 3 months.

The number of investors who want to develop SPP in the country, said Rida, the government is optimistic SPP development targets with a total capacity of 150 megawatts achieved this year. Today alone there are a number of investors from Japan, the United States and South Africa who were prepared to follow the project's bidding process.

Rida explained later in the auction the winning bidder must also provide the land and the power grid up to the electrical system of the PT Perusahaan Listrik Negara (Persero)/PLN. The government has set the price of electricity from solar energy at U.S. $ 0.25 per kilowatt hour (kWh).

Despite the sale price of electricity from solar energy and will be included in Minister Regulation EMR, PLN can still purchase electricity from solar under predetermined rates as agreed with the developer. "That would be a reference PLN contract with the developer. Later through an auction process will be established price, "he explained.

From the data of REEC/EBTKE, in 2012 and has been development of SPP in 25 provinces with a total of 4740 kilowatts. Determination of selling price of electricity itself issued by the government to attract investors to develop SPP to reduce the use of fuel oil in the country.

The reason for this solar developers complained about the high level of investment in the sector is not accompanied by the high price of electricity to PLN. PLN can not buy electricity at high prices, since the price to consumers is low, so it is feared to increase funding in the state budget subsidy.

Meanwhile, PLN's director Nasri Sebayang said, SPP only suitable built in remote areas and not in direct contact with the existing electrical system. Until today, PLN will still utilize solar power to replace the use of diesel fuel during the day.

"SPP does not fit both technically, mainly because the price of solar equipment is still considerably more expensive than coal, gas, water and geothermal," he said.

The development of SPP is expected to add the national electrification ratio. Until the end of 2012 and only the electrification ratio reached 75.9% and is expected to reach 79.3% at the end of 2013.

Currently, solar power capacity has reached 132 megawatts of installed potential to reach more than 50,000 megawatts in the whole of Indonesia. (*)

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