SOLARSERVER - Recently, Indonesia’s Ministry of Energy & Mineral Resources (ESDM) issued the Government Decree (Peraturan Menteri (Permen) ESDM 19/2016). This decree will provide proper support mechanisms for utility-scale solar photovoltaic (PV) systems, exhibition and event management services company GEM Indonesia reports.
Solar FIT up to USD 0.25 per kWh
The main points of the decree are Feed-in-Tariffs (FITs) for solar power from USD 0.145 cents to USD 0.25 per kWh of solar power, and the goal to add 5.000 MWp of solar PV capacity in 2-3 years. The ESDM is optimistic that projects will be implemented smoothly.
This program will offer quota to Independent Power Producers (IPPs). Through the regulation, Indonesia could get an additional investment of up to Rp 156 trillion (USD 12 billion).
Indonesia’s government has set aside USD 100 million for subsidizing renewable energy in 2017. This rule could encourage the development of solar power plants and huge demand in the market. GEM Indonesia notes.