Revision to Regulation 112/2022 Regulates the Use of Excess Power for Hydrogen Production

The Ministry of Energy and Mineral Resources (“ESDM”) is currently continuing discussions on a draft regulation of the government on the amendment to Regulation of the President No. 112 of 2022 on the Acceleration of Renewable Energy Development for Electricity Supply (“Regulation 112/2022”). The amendment to Regulation 112/2022 is being prepared as a legal basis for the development of the hydrogen ecosystem.

Director-General of New, Renewable, and Energy Conservation (EBTKE), Eniya Listiani Dewi, believes that hydrogen production costs can be reduced by utilizing excess power. According to her, the hydrogen produced also has the potential to meet the needs of the national fertilizer and chemical industries, thereby reducing depndence on imports.

“Hydrogen can be inexpensive if we produce it from excess electricity. So, if electricity enters the grid during the day and there is no demand, we can divert it to produce hydrogen,” said Eniya.

Based on the Draft Regulation obtained by Hukumonline, the new regulation recognizes hydrogen as a form of energy storage. This provision is outlined in Article 3, paragraph (2), which classifies hydrogen technology as part of the supporting services for the electric power system, not merely for the transmission of electrical energy.

The Draft Regulation also establishes mechanisms for utilizing excess electricity supply. Article 25, paragraph (4), letter d allows for direct procurement of excess electricity, while Article 40 grants license holders for electricity supply for self-consumption (“IUPTLS”) the authority to sell surplus electricity to license holders for public electricity supply (“IUPTLU”) as well as to the general public.