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Back You are here: Home Business Asia Indonesia to see solar F.I.T., launch 150 MW solar tender in April


Indonesia to see solar F.I.T., launch 150 MW solar tender in April

The Indonesian government is calling for a tender for the construction of at least 150 megawatts worth of solar power projects across the country.

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The official announcement is expected next month, reported Indonesia’s Antara news agency. The tender expected to render 19 trillion Indonesian rupiah ($1.95 billion) worth of power purchase deals.

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According to the energy and mineral resources ministry director Rida Mulyana, the tender process will be based on the ministry’s regulation on feed-in tariffs of solar power stations that are anticipated to be issued next week.

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According to the draft of the ministerial regulation on feed-in tariffs, the selling price of electrical power must be at a maximum of 25 cents per kilowatt hour. This will apply to all regions in Indonesia.

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The tender process should take about two months, while around three months will be needed to carry out the solar power project, said Mr. Mulyana.

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He expressed optimism that the construction of the solar power stations would be accomplished quickly and in time as both local and foreign investors have expressed interest and are now just waiting for the tender.

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Investors who win a tender will also prepare plots of land and networks in order to connect to state electricity firm PT PLN’s system.

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The selling price of solar power to be set in the tender is final and will serve as a reference of contract with PLN.

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The ministerial regulation on F.I.T.s is an eagerly anticipated legislation that is seen as key to attract as many investors as possible to develop solar power projects in Indonesia.

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Indonesia is said to have solar energy potential of around 480 kWh per square meter a day.

The development of renewable energy projects – such as solar - in the country is considered a government priority as Indonesia has set a target of generating 25 percent of their energy supply from renewable energy by 2025. – EcoSeed Staff

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