The government will include Power Wheeling in the Renewable Energy Sources Act – Regulations

The government will include Power Wheeling technology in the draft Renewable Energy Sources Act, which will enable private companies to sell electricity directly to consumers via the transmission network owned by state-owned energy company PLN.

Director General for New and Renewable Energy Sources at the Ministry of Energy and Mineral Resources Eniya Listiani Dewi said on Thursday that the ministry is in the process of developing pricing principles and terms of use of PLN transmission for the distribution of electricity from renewable sources.

“We will introduce (arrangements) regarding the lease of networks, etc., which are already included in the energy law,” she said, as quoted by Business.

The government removed the articles on e-cycling from the bill in November 2022, but later reinstated the plan in November last year.

Current regulations require that electricity generated by independent power producers (IPPs) be sold for PLN for distribution under a state monopoly, which comes with conditions that may limit the economic viability of clean energy projects.

Also read: Government revives Power Wheeling proposal in Renewable Energy Sources Act

Although it is legal, power wheeling has not been implemented in Indonesia due to restrictive regulations and the complications it creates for PLN, especially in the implementation of economic shipments, according to the think tank Tenggara Strategics, which is associated with Jakarta Postin February.

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