Purchase Price of Electricity from New Energy Small and Medium Scale Producers

The Minister of Energy and Natural Resources has issued Regulation No. 31 of 2009 to codify the import role that small and medium scale electricity producers play in the provision of electricity to national supply chain, particularly electricity that is produced from new energy sources. However, the regulation covers the purchase of excess power as well. The purpose of the regulation is to set out a purchase price for this electricity.

The State Electricity Company (PT PLN) is under an obligation to purchase electricity from small and medium scale producers with a capacity of up to 10 MW.

The basic formula for determining purchase price is:

F depends on the location of the electricity being purchased. For Java and Bali F = 1, for Sumatera and Sulawesi F = 1.2, for Kalimantan and West and East Nusa Tenggara F = 1.3, and for Maluku and Papua F = 1.5.

To facilitate the purchase of electricity PT PLN must formulate a standard Sale and Purchase contract. And, all sales and purchases under the provisions of this regulation must use this contract.

The regulation has been in force since 13 November 2009.