The government of Indonesia has declared its preparedness to incorporate the sale of electricity into the New and Renewable Energy Act, enabling private enterprises to directly market power to final consumers via the transmission and distribution infrastructure operated by Indonesia's state-owned electricity company, PLN.
The Institute for Basic Services Reform, headquartered in Jakarta (IESR), has been advocating for the addition of electricity trading to the legislation, asserting that this step would expedite the growth and utilization of renewable energy in the country, enhance the dependability of the power supply, and increase the efficiency of operational costs. Furthermore, the expanded use of renewable energy technologies will aid in the decarbonization of Indonesia's industrial and transportation sectors. Lowering the acquisition of electricity from developers would alleviate the load on PLN.
Fabby Tumiwa, the Executive Director of IESR, noted that historically, electricity trading was stipulated in the Electricity Law but was not put into practice. The current structure of Indonesia's electricity market necessitates the execution of electricity trading. PLN, as the sole proprietor of a comprehensive business area, holds the exclusive right to construct and manage the transmission system. Consequently, the electricity generated for power plant projects is disseminated to consumers, and the grid should be made accessible to external entities, with PLN generating revenue through the collection of grid fees. Moreover, the regulation of electricity trading must be rigorously applied to ensure the reliability and security of the power supply to end-users. As a result, the government is urged to establish explicit directives for calculating the cost of electricity trading that does not adversely impact grid proprietors and power plant operators.
IESR expressed its aspiration that this initiative will facilitate Indonesia in reaching its renewable energy objectives and attaining carbon neutrality by 2060, or even before.
Source：https://mp.weixin.qq.com/s/trTWld5bzUnln6e4WOBVQA
