Energy Ministry Issues Regulations to Meet Electrification Target
2 February 2017 21:10 WIB
TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Ignasius Jonan issued three ministerial regulations promulgated by the Law and Human Rights Ministry.
Jarman, director general of electricity at the Energy and Mineral Resources Ministry explained that the new bills are related to the target of electrification to be achieved by 2019.
“The government has set a target to achieve 10 percent of electrification by 2019 and to set affordable electricity prices without hikes. This is a shared target set by the Energy Ministry who initiated the ministerial regulations,” he said at his office on Thursday, February 2, 2017.
The three regulations are Ministerial Regulation No. 10/2017 on electricity sale and purchase agreement, Ministerial Regulation No. 11/2017 on the utilization of gas for power plants, and Ministerial Regulation No. 12/2017 on the utilization of new and renewable energy.
Regulation No. 10/2017 was issued to govern the risk equalization between the sellers, in this case, the Independent Power Plant (IPP), and buyer, which is the state electricity company PLN.
“Therefore, a legal base is provided because some power plants had not been reliable causing frequent power outage despite sufficient capacity,” Jarman explained.
Ministerial Regulation No. 11/2017 was issued to govern natural gas utilization for power plants in a bid to secure gas and energy supplies for reasonable prices.
“The ministerial regulation will provide options of reasonable prices,” Jarman added.
Finally, Ministerial Regulation No. 12/2017 governs efficient utilization of energy sources.
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