Key Points of the Amendments to the Presidential Regulation on Renewable Energy Electricity

The Government plans to proceed with the revision of Presidential Regulation No.112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Supply (“Perpres 112/2022”). This revision covers four key issues, namely: geothermal strategic sector, various forms of New and Renewable Energy (Energi Baru Terbarukan – “EBT”), bioenergy, and energy conservation issues through the energy transition.

“Adjustments to the provisions of Perpres 112/2022 are necessary to enhance investment and accelerate the achievement of the EBT mix targets,” said Eniya Listiani Dewi, the Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”).

Eniya Listiani Dewi explained that the conservation aspect through the energy transition will amend several provisions relating to the operation and early retirement of the operational period of Coal-Fired Steam Power Plants (Pembangkit Listrik Tenaga Uap – “PLTU”). The draft regulation will require all existing PLTUs that are not included in the early retirement program to immediately reduce their emissions by complying with exhaust-gas emission limits and participating in an emissions-trading scheme. This provision expands the scope of emission control, applying not only to PLTU planned for early retirement but also to those that continue to operate at full capacity.

The draft revision also tightens the criteria for early termination of PLTU operational periods by incorporating the factor of increasing basic electricity supply costs as a consideration, meaning that not all PLTUs will automatically meet the requirements for early retirement of operational period. In addition, newly built PLTUs that are exempted from the moratorium will still be required to reduce emissions by at least 35 percent within 10 years, based on the national average emissions baseline for the year 2025.