Trading Scheme for Electrical Power Sourced from Waste-Based Power Plant

Minister of Energy and Mineral Resources (“Minister”) has issued Regulation No. 19 of 2013 on Purchasing of Electrical Power Sourced By State Electricity Company from Waste-Based Power Plant (“2013 Regulation”). The Regulation aims to secure electric supply, and also reducing city waste by encouraging business entity to establish waste-based power plant.

In general, the 2013 Regulation obliges State Electricity Company (Perusahaan Listrik Negara- “PLN”) to buy electrical power from waste-based power plant that utilizes either sanitary landfill or zero-waste methods (Art. 2 (2), 2013 Regulation).[1] In doing so, Government will enter cooperation with businesses that run waste-based power plant.