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Dozens of renewable energy projects yet to receive financing

Jakarta Post - July 15, 2019

Jakarta – Many renewable energy projects approved by the government are still facing uncertainty as many have so far failed to attract investors.

The Energy and Mineral Resources Ministry's diversified energy director, Harris, said from the 75 projects that had power purchase agreements (PPAs), only eight had started commercial operations.

Meanwhile, 35 projects are still under construction, 30 are in the process of reaching financial close (FC), 21 projects are in progress and two have yet to be terminated.

"So, there is progress," he said as quoted by kontan.co.id on Sunday, adding that he was still optimistic that the target of renewable contribution could be reached as planned.

He said for 2019 and 2020, the government targeted to procure 157 renewable energy projects with a capacity of 4,718.14 Megawatts and an estimated investment of Rp 147.12 trillion (US$10.55 billion).

The projects are located in many parts of the country, including Sumatra, West Java, Central Java, East Java, Bali, Nusa Tenggara, Kalimantan, Sulawesi and Maluku.

Meanwhile, state-owned electricity company PLN strategic procurement director Sripeni Inten Cahyadi said the projects that had not completed the financial close process could face termination.

She declined to reveal the details, saying only that those projects were mostly mini hydropower plants with a capacity less than 10 MW each.

"The termination [of each project] is different in each region; they have up to June, July and September [to reach financial close]," Sripeni said on Sunday. (bbn)

Source: https://www.thejakartapost.com/news/2019/07/15/dozens-of-renewable-energy-projects-yet-to-receive-financing.html