Oleh Ir. Djoko Winarno MM, IPU Director of Renewable Energy ...

Energy from Biomass and Biogas in the Agroindustry
Connecting to the Grid :
Administrative and Technical Requirements
For Grid Interconnection
Oleh
Ir. Djoko Winarno MM, IPU
Director of Renewable Energy & Primary Energy Indonesian Electrical Power Society
Jakarta , May 20, 2013

Electricity Law 30, 2009 and MEMR Regulation No.4 , 2012 created nonutilyty
small power program and industry...

INVESTMENT MECHANISM
(Government Regulation No. 14/2012 on Activity of Electricity Provision Business)
Tender
Direct
Selection
Direct
Appointment
• Basically, entire
of power purchase
by the holder of
electricity
provision business
license conducted
through Tender,
except fulfill
condition of Direct
Selection and/or
Direct
Appointment.
• In the frame of energy
diversification for power generation
to non oil fuel.
• Addition of generation capacity on
the power plant which has already
operation in the same location, in
terms of in the same location there
are more than one of holder of
electricity provision business
license which is interested.
• Power purchase from power generation which
utilize renewable energy, marginal gas, minemouth
coal and other local energy sources;
• Purchasing of excess power;
• Local electricity system in the crisis condition or
emergency of electricity supply; or.
• Expansion of IPP which has already operation at
the same location:
o Capacity ≤ existing
o Capacity > existing:
− more efficient technology
− environmental friendly
− accordance with the requirement of local
electricity system

Tata Cara Perizinan UPL ( Usaha Penyediaan Tenaga Listrik )

Tata Cara Perizinan UPL ( Usaha Penyediaan Tenaga Listrik )... Count

MINISTRY OF FINANCE REGULATION NUMBER 21/PMK.011/2010
Regulation of tax and customs facility for renewable energy resources utilization activities
FINANCIAL INSTRUMENTS
SUPPORT
Income
Tax
Value
Added Tax
Import
Duty
Tax Borne by
Government
• Reduced net income for
30% of total investment
• accelerated depreciation
• Imposition
of Income Tax on dividend p
aid
to Foreign Taxable at 10%
• compensation for losses in
certain circumstances
Exemptions of VAT for
Taxable Goods,
machinery and
equipment for RE
utilization (not
included spare parts)
Exemptions for Import Duty
of
Goods and Machinery
for development and
capital investment
Capital Goods Imports
for construction and
development of electricity
industry
Regulated in State
Annual Budget
Law and its
implementing
regulations

MINISTRY OF FINANCE REGULATION NUMBER 130/PMK.011/2011
CONCERNING ON PROVISION OF EXEMPTION FACILITIES OR REDUCTION OF INCOME TAX
CORPORATE
TAXPAYERS
can get facilities:
EXEMPTION OR REDUCTION OF
CORPORATE INCOME TAX
• PIONEER INDUSTRIES
• Having a new investment plan min.
IDR 1 trillion
• Placing funds in the Indonesian
banking min 10% from the total
capital investment plan
• Existed as ENTITY INDONESIA
EXEMPTION OF CORPORATE INCOME TAX
5 - 10 tax year
After the end of Corporate Income Tax exemption facility
REDUCTION OF CORPORATE INCOME TAX
50% of Income Tax Payable for 2 tax yearh
Minister of Finance may provide facilities Corporate Income
Tax exemption or reduction for a period EXCEED
predetermined period of time
• Industry of Basic Metals Manufacutre
• Industry of Oil Refining and / or Basic Organic Chemicals
sourced from Oil and Natural Gas
• Industry of Machinery
• INDUSTRY OF RENEWABLE
RESOURCES FIELD
• Industry of Communications Equipment
PIONEER INDUSTRIES
*) The facility can be utilized if:
1. Had executed the entire capital investment
2. Has been produced commercially

COST OF PROVIDING PT PLN (PERSERO) YEAR 2011
3.500
3.000
2.500
BPP rata-rata
Rp 1.251 /kWh
di atas
BPP Nasional
2.152
2.284
2.359 2.393
2.606 2.618
2.901
3.279
2.000
1.500
1.000
971
di bawah
BPP Nasional
1.021 1.035 1.054 1.057
1.109
1.251
1.504 1.517 1.525 1.536
1.616
1.709
1.813
500
0
BPP Nasional : Pembangkitan: Rp 1.033/kWh, TT: Rp 1.096/kWh, TM: Rp 1.162/kWh, TR: Rp 1.328/kWh

MEKANISME PENGEMBANGAN ENERGI TERBARUKAN
Calon Pengembang
mengajukan proposal ke
PLN
Pengajuan penjualan TL
PLN setuju
PLN mengajukan
persetujuan penunjukan
langsung ke Menteri
Pengembang mengajukan
Permohonan IUKU
Sementara
Persetujuan penunjukan
langsung oleh Menteri
Negosiasi harga jual beli
Tenaga listrik dan
Kesepakatan kontrak
Note:
*) Harga jual yang tidak melebihi
ketentuan Permen 31/2009 tidak
memerlukan persetujuan harga
dari Menteri
Persetujuan Harga jual
Listrik
Oleh Menteri *)
Persetujuan Korporasi
Pengembang mengajukan
Permohonan IUKU
Kontrak jual beli
(PPA) Tenaga Listrik

Flow Chart Direct Appointment Method (1)

Flow Chart Direct Appointment Method (2)

Time Schedule Process PPA for Biomass Power Plant

TIMELINE PPA

Pokok – Pokok PPA (1)
No Subyek PPA
1 Sifat PPA Take-or-pay PPA, dengan opsi untuk membeli proyek pada akhir
masa kontrak. Walaupun IPP mempunyai take-or-pay PPA
contract, risiko off-taker PLN masih ada (non-payment risk,
political risk)
2 Periode PPA + /- 25 tahun, tidak termasuk masa satu tahun untuk pencapaian
financial close dan untuk pekerjaan konstruksi
3 Availability Factor + 80%, setelah Project COD
+ 50%, setelah Unit COD
4 PPA Tariff Dalam rupiah, terdiri dari 5 komponen
A: capital cost recovery
B: biaya tetap O&M
C: biaya bahan bakar
D: biaya variabel O&M
E: capital cost recovery untuk Special Facilities
(jaringan transmisi dan GITET)
5 Project security Escrow account sesudah PPA signing
Bank Guarantee saat PPA signing
Bank Guarantee II saat financial close

Pokok – Pokok PPA (2)
No Subyek PPA
6 Pasokan batubara Pengadaan oleh IPP dengan persetujuan PLN Harga batubara dipass-through
ke PLN
7 Liquidated damage Denda keterlambatan COD di-cap
8 Grace period on FM 2 + 7 hari (selama operasi)
48 jam (untuk net dependable capacity test)
9 Pengadaan lahan Dilakukan oleh IPP, PLN membantu koordinasi dan sosialisasi
dengan masyarakat dan pemerintah daerah
10 Deemed Commissioning Natural FM pada PLN atau political FM pada IPP dan PLN yang
mengganggu commissioning diperlakukan sebagai deemed
commissioning
11 Deemed Dispatch Natural FM pada PLN atau political FM pada IPP dan PLN yang
menggangu operasi diperlakukan sebagai deemed dispatch
12 Termination Right PLN Event of default dan prolonged political FM memberikan IPP
Termination Right. Rumus: net present value dari pembayaran
komponen A dan E plus outstanding debt and interest plus EPC
termination cost

INVESTMENT LICENSE

INVESTMENT LICENSE .... Count

CRITICAL ISSUES : CURRENT EXPERIENCES

CRITICAL ISSUES : CURRENT EXPERIENCES

CRITICAL ISSUES : CURRENT EXPERIENCES

THANK YOU
JS Luwansa Hotel & Convention Centre
Jl. HR. Rasuna Said Kav. C 22, Kuningan
Jakarta, Indonesia

ATTACHMENT