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Selasa, Juli 24, 2018

Renewable Energy: Legal Issues Remain

A recent focus group discussion organized by the National Law Development Agency (BPHN) on 17-18 July 2018 addressed two major legal problems which are currently hindering the operation of electrical power plants in Indonesia.
Firstly, the obligation to possess Operational Adequacy Certificates (SLO), as set out under Article 46 of Regulation of the Government No. 14 of 2012 on Electrical Power Plant Business Activities, is considered an impediment in terms of accelerating the development of electrical installations which utilize renewable energy.
Secondly, the implementation of Regulation of the Minister of Energy and Mineral Resources No. 50 of 2017 on the Utilization of Renewable Energy Resources for the Production of Electricity (“Regulation 50/2017”) is believed to have been unsuccessful owing to its failure to attract large-scale investments within the sector. This failure is widely perceived to have been caused by the unfavorable new mechanism for the determination of Basic Production Prices and by the introduction of the unattractive Build-Own-Operate-Transfer production scheme, which is ultimately discouraging banks from supporting such projects.
For more on Regulation 50/2017, see ILB No. 3193 and ILD No. 518.
For more on this story, see Hukumonline: “2 Regulasi Penghambat Penerapan Energi Baru Terbarukan Versi BPHN”.

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A recent focus group discussion organized by the National Law Development Agency (BPHN) on 17-18 July 2018 addressed two major legal problems which are currently hindering the operation of electrical power plants in Indonesia.
Firstly, the obligation to possess Operational Adequacy Certificates (SLO), as set out under Article 46 of Regulation of the Government No. 14 of 2012 on Electrical Power Plant Business Activities, is considered an impediment in terms of accelerating the development of electrical installations which utilize renewable energy.
Secondly, the implementation of Regulation of the Minister of Energy and Mineral Resources No. 50 of 2017 on the Utilization of Renewable Energy Resources for the Production of Electricity (“Regulation 50/2017”) is believed to have been unsuccessful owing to its failure to attract large-scale investments within the sector. This failure is widely perceived to have been caused by the unfavorable new mechanism for the determination of Basic Production Prices and by the introduction of the unattractive Build-Own-Operate-Transfer production scheme, which is ultimately discouraging banks from supporting such projects.
For more on Regulation 50/2017, see ILB No. 3193 and ILD No. 518.
For more on this story, see Hukumonline: “2 Regulasi Penghambat Penerapan Energi Baru Terbarukan Versi BPHN”.

......

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Hukumonline Pro Intelligence

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Terfavorit

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*Syarat dan ketentuan berlaku

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