Renewable Power-Purchase Agreements Tightened: New 80% Cap and Battery Lifespan Obligations

In 2017, the Minister of Energy and Mineral Resources (“ Minister ”) introduced Regulation No. 10 of 2017 , which has subsequently been amended several times, most recently through the issuance of Regulation No. 10 of 2018 on Main Provisions for Power-Purchase Agreements (collectively referred to as “ Regulation 10/2017 ”). Generally speaking, Regulation 10/2017 sets out a number of mandatory provisions that are required to be incorporated into all official Power-Purchase Agreements (Perjanjian Jual Beli Tenaga Listrik– “ PJBL ”). Said provisions encompass commercial aspects that apply to all types of power plants (e.g. geothermal power plants). [1]