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Indonesia Renewable Energy

Taiwan Plans Renewable Energy Investments In Indonesia

written by saurabh

Taiwanese investors may soon set up renewable energy projects in Indonesia.

A delegation of investors from Taiwan recently met the officials of the Indonesian Chamber of Commerce and Industry and the Indonesian government to discuss an investment plan in the renewable energy sector. Taiwan Vice Minister of Economic Affairs Wei-Fuu Yang said that investors from his country are planning to invest in solar power and biogas sectors in Indonesia.

Over the last few months the government has taken several measures to promote investment in the renewable energy sector, including the implementation of a single-window approval system.

Indonesia plans to boost the share of renewable energy sources in the total energy mix to 19% by 2019 and to 25% by 2025, up from its current share of renewable energy sources of between 5% and 6%.

Indonesia recently announced feed-in tariffs for solar PV power projects in the range of US¢14.5/kWh and US¢25.0/kWh. The tariff vary from region to region. Java and Sumatra have been assigned the lowest tariff of less than US¢20.0/kWh but the levellised cost of energy is even lower at around US¢8.8/kWh.

10/31/2016 0 comment

Renewable Energy

Upto 19% Rate Of Return Expected From Indonesia’s New Solar Feed-in Tariffs, Says BNEF

written by saurabh

Indonesia may soon become a budding solar power market as feed-in tariffs recently announced by the government are expected to yield very attractive returns for developers.

According to an analysis by the Bloomberg New Energy Finance (BNEF), solar power projects in Java and Sumatra may yield rate of return up to 18.8% the capital cost of setting up solar power projects in these areas will be lower compared to that in other regions of Indonesia.

Projects selected for implementation will sell electricity through 20-year power purchase agreements. Java has been allocated a total capacity of 150 MW with project size capped at 20 MW. Projects will less than 10 MW capacity will have to be commissioned within 12 months while larger projects will get 24 months.

Over the last few months the government has taken several measures to promote investment in the renewable energy sector, including the implementation of a single-window approval system. The planned incentives would play a critical role in Indonesia’s endeavor to boost the share of renewable energy sources in the total energy mix to 19% by 2019 and to 25% by 2025, up from its current share of renewable energy sources of between 5% and 6%.

08/27/2016 0 comment

Renewable Energy

OPIC To Fund Indonesia’s Largest Wind Energy Project

written by saurabh

Renewable energy sector in Indonesia received a much needed boost when the US-based Overseas Private Investment Corporation agreed to provide debt to the largest wind energy project in the country.

OPIC President and Chief Executive Elizabeth Littlefield recently announced that $120 million shall be provided to UPC Sidrap Bayu Energy for the construction and development of 70 MW wind energy project in Sulawesi. The project is reportedly the ‘largest of its kind’ in the country. UPC Sidrap Bayu Energy is joint venture between US-based UPC Renewables and local company Binatek Energi Terbarukan.

The 70 MW project was first announced last year, in May, along with another project of 50 MW capacity. UPC Sidrap Bayu Energy is looking to develop 1,000 MW of wind energy capacity in Indonesia over the next 5 years. The company is also looking to expand operations in the solar power market.

Indonesia is looking to expand its renewable energy infrastructure. The country has a medium-term target for increasing the share of renewable energy in total energy use to 25% by 2025. Last year, the government set a target to increase the share of renewable energy in total energy mix to 19% by 2019.

Earlier this year, the government also announced plans to increase procurement of renewable energy by floating a new utility specifically for this purpose. The government considered this measure after reports that the country’s main power utility, Perusahaan Listrik Negara (PLN), is opposed to buying power from renewable energy projects due to the high costs involved in the exercise.

04/17/2016 0 comment