Indonesian Government to Regulate Selling of Solar Power to PLN

Government Regulations on Rooftop Solar PV drafted by Indonesian Energy and Mineral Resources Ministry (EMR) includes setting of power selling capacity to maximum of 90 percent.

As a part of relief to the domestic solar power generators, Indonesian Government is soon going to issue regulations regarding the rooftop solar pv systems in order to allow them to sell unused electricity to Perusahaan Listrik Negara (PLN), Indonesian Government owned distribution corporation.

Government Regulations on Rooftop Solar PV drafted by Indonesian Energy and Mineral Resources Ministry (EMR) includes setting of power selling capacity to maximum of 90 percent and regulation of electricity transactions on the basis of electricity tariff formula, subscription fees, and the average electricity supply cost.

Energy and Mineral Resources Minister, Ignasius Jonan said, “The regulation will allow PLN’s customers in all segment excluding industries to install rooftop solar panels. PLN customers in this segment are estimated at two-thirds of total customers. The regulation will be issued in 1-2 weeks; we will conduct a large-scale socialization.”

In addition, Jonan said, the regulation will allow solar panel users to sell the excess electricity to PLN at certain regulated price. As a result, the consumers will gain savings with this scheme.

The country has set a target to achieve a 23 percent share of renewable energy in the country’s energy mix by 2025 from the current share of about 13 percent.  The government plans to build 14,912 megawatts of renewable energy by 2027.

PLN is the sole electricity distribution company in the country which had catered to a demand of 176 tWh overall. The country’s demand is expected to reach 628 million TOE by 2050.