Energy Working Group Meeting

Energy Working Group had a regular meeting through a video conference on Thursday, 30 April 2020. The discussion was moderated by Thomas Wagner (Head of Energy Working Group) with the agenda that touches sector policies and a sharing session about "Changes to Development of Renewable Projects by Issuance of Minister of Energy Mineral and Resource (MEMR) Regulation No. 4 of 2020 on The Use of Renewable Energy for Electricity Power Supply", which was presented by Kirana Sastrawijaya (Senior Partner of UMBRA – Strategic Legal Solutions). The meeting was well attended by around 50 participants.

Kirana conveyed about the six main changes in the regulation which had been effective on 26 February 2020, as follows: (1) Procurement Method; (2) Timeframe for the Procurement; (3) Additional provisions on electricity purchase price approval; (4) Removal of BOOT (Build, Own, Operate, and Transfer) mandatory provisions; (5) Additional capacity factor on Hydropower with flow or irrigation channels whose construction is multipurpose; and (6) Additional provision on guidance and supervision. This new regulation was the second amendment of MEMR Regulation No 50 of 2017.

The discussion continued with a sector policy update on renewable energy, specifically relate to the Draft of Presidential Regulation to consider the mechanism purchase of renewable energy through Feed in Tariff. The last agenda was talking about the reasons on the oil’s price drop and the affect on the development of renewable energy.

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