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PLN mulls scrapping 24 stalled renewable energy projects

JAKARTA (RambuEnergy) – State utility company PT Perusahaan Listrik Negara (PLN) mulls scrapping the stalled renewable energy projects which are supposed to be developed by private investors. The projects were stalled for various reasons, including their failure to secure financial close.

The projects have combined capacity of 324.12 MW, consisting of 19 mini hydropower plants with combined capacity of 105.12 MW, one hydro power plant with capacity of 200 MW, 4 bio-energy and waste-to-energy power plants with combined capacity of 19 MW.

PLN gives deadline until June this year for these projects to secure financial close. Most of the projects have been stalled since 2017.

PLN Director for East Java, Bali and Nusa Tenggara region (covering West and East Nusa Tenggara Provinces) was quoted by Kontan daily as saying that if the project developers failed to meet financial close by the end of June, PLN will not hesitate to terminate them.

The 24 renewable energy projects were part of 70 renewable energy projects that have signed power purchase agreement (PPA) with PLN in 2017. Of these 70 renewable energy projects, only 35 MW have begun commercial operation date (COD). Meanwhile, 29 projects with capacity of 780.75 MW entering construction phase and 10 (with capacity of 68.7 MW) has submitted guarantee to proceed but yet to secure financial close. While two projects with planned installed capacity of 5.6 MW have been terminated. (*)

 

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