The Indonesian government has unveiled several new schemes under the Draft Law on New and Renewable Energy (RUU EBET), designed to accelerate the growth of clean energy and enhance the efficiency of transmission network usage. These proposed changes are expected to significantly impact the renewable energy sector and electricity distribution practices.
One of the key proposals involves imposing new regulations on the use of transmission networks. Under the draft law, electricity generators from new and renewable sources are restricted from directly distributing their power to consumers within the PLN business area (wilus) or beyond. Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), clarified in a media briefing on that direct sales of electricity to households are not currently permitted under this scheme.
However, the draft law includes provisions that allow generators with a General Electric Power Plant Business License (IUPTLU) located within PLN Wilus to distribute electricity to industrial areas through external PLN networks by leasing the PLN infrastructure. Additionally, generators holding a Solar Power Plant Business License (IUPTLS) and those supplying PLN consumers can distribute electricity to specific company loads by renting the PLN network.
Dewi explained, “As long as it is within the PLN wilus and there is an EBET source, we are permitted to use the transmission network with PLN and supply electricity to PLN consumers in designated business areas.”
The proposed schemes are intended to make investments in the new and renewable energy sector more appealing. By improving transmission network efficiency, the government aims to lower electricity production costs and reduce electricity rates for consumers. Despite the potential benefits, the Draft Law on New and Renewable Energy is still under discussion and has not yet been finalized by the House of Representatives (DPR).
The ongoing discussions will determine the final shape of the legislation and its impact on the renewable energy landscape in Indonesia.
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