MEMR Releases New Regulations on Captive Power Plants and Use of Roof Solar Power Plants
Minister of Energy and Mineral Resources (MEMR) Regulation No. 12 of 2019 on Capacity of Power Plants for Private Purposes Based on Operational License (Reg 12)
Reg 12 revokes MEMR Regulation No. 29 of 2012 on the Capacity of Power Plants for Private Purposes Based on Operational License (Reg 29).
Under Reg 29, owners of a captive power plant with a capacity of more than 200 kVA were required to obtain an Operational License issued by the Director General of Electricity (DGE) on behalf of the MEMR, relevant Governor or Regent (as applicable), and a Registered Certificate (Surat Keterangan Terdaftar or SKT) was required for a capacity of 25 kVA up to 200 kVA.
Reg 12 now provides the following:
- Captive power plants with a total capacity of >500 kVA. The owner of this type of power plant must obtain both an Operational License and an Operational Worthiness Certificate (Sertifikat Laik Operasi or SLO).
- Captive power plants with a total capacity of ≤500 kVA. The owner of this type of power plant does not have to obtain an Operational License or an SLO. However, the owner must submit a one-time report prior to the commencement of the electricity supply to the MEMR through the DGE or the relevant Governor in accordance with their authority. Further, the owner must ensure that the power plant has a manufacturer test result (hasil uji pabrikan), product certificates (sertifikat produk) or a product safety standard document (dokumen standar keselamatan) equivalent to SLO.
- SKT is no longer required. Operational Licenses and SKTs issued before Reg 12 came into effect remain valid until they expire as long as the designation and the capacity of the power plant do not change.
MEMR Regulation No. 13 of 2019 (Reg 13) on Amendment to MEMR Regulation No. 49 of 2018 (Reg 49) on the Use of Rooftop Solar Power Plants by Customers of PLN
The amendments contemplated by Reg 13 were intended to bring the requirements to obtain an Operational License and an SLO for rooftop solar power plants in line with Reg 12.
Previously, under Reg 49, owners of rooftop solar power plants with a capacity greater than 200 kVA were required to obtain both an Operational License and an SLO.
Reg 13 now amends and relaxes certain provisions under Reg 49 regarding requirements to obtain an Operational License and an SLO, to comply with Reg 12, which is the current prevailing law. As a result, only rooftop power plants with a capacity greater than 500 kVA require both an Operational License and an SLO.
PLN customers that are in the process of applying for an Operational License and an SLO for rooftop solar power plants with a capacity ≤ 500 kVA will be affected by this relaxation.
MEMR Regulation No. 16 of 2019 (Reg 16) on the Second Amendment of Regulation No. 49 of 2018 (Reg 49) on the Use of Rooftop Solar Power Plants by Customers of PLN
Reg 16 also relaxes the requirements under Reg 49. Through this amendment, the MEMR has decided to facilitate industrial customers who want to have their own rooftop solar projects to supplement their electricity supply.
Reg 16 lowered the monthly capacity charge amount to only five hours, or one-eighth of the amount under the previous regulation. The amendment also eliminates the mandatory emergency energy charge.
Before today, PLN industrial customers who had rooftop solar projects were subject to a monthly 40 hours' capacity charge, which is the same as the amount payable by PLN customers that have load based captive power plants.
Please see our client alert on Reg 16 here.