Indonesia to Allow Wheeled Driving – pv magazine International

Indonesia’s new renewable energy law will include provisions to enable so-called power wheeling, or the sale of electricity from private companies directly to end consumers through networks owned by the state-owned power company.

July 11, 2024 Patrick Jowett

The Indonesian government has announced that it intends to introduce regulations to enable the use of electricity under the New Energy and Renewable Energy Act.

Power Wheeling will enable private companies to sell electricity directly to end users, using the transmission and distribution networks of the Indonesian state-owned energy company PLN.

The Jakarta-based Institute for Basic Services Reform (IESR), which called for the inclusion of power wheeling technology in the bill, says the move will accelerate the development and implementation of renewable energy sources in Indonesia.

The institute also noted other benefits, including improved reliability of electricity supply and operational cost efficiency, as well as promoting grid expansion and cooperation between business sectors. It also enables wider adoption of renewable energy technologies to support Indonesia’s industrial and transport sectors in their decarbonization efforts, while also reducing the burden on PLN by reducing the need to purchase electricity from developers.

IESR executive director Fabby Tumiwa said power wheeling has been regulated in the past in the electricity law but has not been implemented. He said power wheeling is necessary given the current structure of the electricity market in Indonesia.

“In this case, PLN, as the holder of the integrated business area, has the right to build and operate the transmission system, while other business participants do not have such a right,” Tumiwa said. “Therefore, the power grid should be accessible to other parties to distribute electricity from the generator to the user, providing income to PLN through network lease fees.”

Tumiwa said stringent regulations for electric vehicles need to be introduced to ensure reliable and secure supply to consumers.

“For this reason, the government needs to develop clear guidelines for calculating fares so as not to harm network owners and system operators,” he said.

The IESR said it hopes the move will help Indonesia achieve its renewable energy mix goals and become carbon neutral by 2060 or earlier.

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