Renewable Power-Purchase Agreements Tightened: New 80% Cap and Battery Lifespan Obligations

In 2017, the Minister of Energy and Mineral Resources (“Minister”) introduced Regulation No. 10 of 2017, which has subsequently been amended several times, most recently through the issuance of Regulation No. 10 of 2018 on Main Provisions for Power-Purchase Agreements (collectively referred to as “Regulation 10/2017”). Generally speaking, Regulation 10/2017 sets out a number of mandatory provisions that are required to be incorporated into all official Power-Purchase Agreements (Perjanjian Jual Beli Tenaga Listrik – “PJBL”). Said provisions encompass commercial aspects that apply to all types of power plants (e.g. geothermal power plants).[1]