State-owned electricity firm PLN has opened tender processes for solar power plants in Sumatra with a total capacity of 168 megawatts (MW) of electricity in a bid to meet the government’s goal to supply 23 percent of the national energy mix from renewable sources by 2025.
“We opened the tender processes last Monday. As of today, 116 parties have taken the tender documents,” PLN corporate planning director Nicke Widyawati said in Jakarta on Wednesday evening.
“We will hold tenders for renewable plants on a regional basis. Now, it is Sumatra first.”
PLN expects to seal all of the power purchase agreements (PPA) for the solar power plants within the next five to six months.
According to PLN’s electricity procurement business plan (RUPTL) for the 2017-2026 period, the company plans to acquire an additional 632 MW of electricity from renewable energy sources this year, almost half of which will come from geothermal power plants.
In 2026, PLN plans to acquire an additional 21,560 MW of electricity from renewable energy sources, with 58 percent of the total coming from hydro power plants.
The Energy and Mineral Resources Ministry recently issued decree No. 12/2017 on renewable sources for electricity procurement. The decree places a cap on electricity rates from renewables at 85 percent of the local electricity supply costs (BPP) if it is higher than the national average.