{"id":45606,"date":"2016-07-27T13:07:41","date_gmt":"2016-07-27T17:07:41","guid":{"rendered":"http:\/\/planetsave.com\/?p=45606"},"modified":"2016-07-27T13:07:41","modified_gmt":"2016-07-27T17:07:41","slug":"indonesia-solar-market-will-accelerate-government-decree","status":"publish","type":"post","link":"https:\/\/planetsave.com\/articles\/indonesia-solar-market-will-accelerate-government-decree\/","title":{"rendered":"Indonesia Solar Market Will Accelerate After Government Decree"},"content":{"rendered":"

When in Indonesia, add a government decree to the formula for boosting solar energy, and all things begin to look more attractive to clean electricity developers and investors.<\/p>\n

Until now, the solar market of Southeast Asia has been tepid, at best. But a new decree from Indonesia’s Ministry of Energy and Mineral Resources<\/a> is set to change the situation and open the heavily government controlled solar market, writes Solarplaza<\/a>.<\/p>\n

The decree for a new regulation, signed in mid-July, will\u00a0provide proper support mechanisms for utility-scale solar PV systems. Importantly, the regulation does not utilize a tender mechanism or a reverse auction system like what has been used in past efforts. Rather, it is a Feed in Tariff (FiT)<\/a> that\u2019s promised to registered project developers once they meet certain milestones..<\/p>\n

\"Indonesia
Famous temple in Bali, Ulun danu Hindu temple. Credit: Sthaporn Kamlanghan<\/figcaption><\/figure>\n

The struggles of the Indonesian commercial solar market are largely due to lack of clear support mechanisms and transparent framework, states clean energy consultant\u00a0Andre Susanto:<\/p>\n

“Until the reverse auction regulation in 2013, solar PV development in Indonesia was strictly possible only\u00a0through government project tenders and a handful of power auctions by PLN (the state-owned electricity company). Even now, mid-2016, the largest share of solar PV projects are government and PLN projects. Privately funded project opportunities are growing, but have not reached the level of success that\u2019s needed to qualify Indonesia\u2019s solar PV industry as mature.”<\/em><\/p>\n

A New Decree<\/strong><\/p>\n

The policy is seen as being similar to the Philippines\u2019 last regulation, the difference being Indonesia\u2019s regulation will use the approval of the project and its feasibility study as the necessary milestone.<\/p>\n

Once the project developers meet the requirements and reach this milestone, they\u2019re awarded the promise of the PPA tariff for the region where their project is located.<\/p>\n

Highlights of the regulation\u2019s main points:<\/p>\n