Tuesday, 20 April 2021
14.00-16.00 (Jakarta Time)
Register Here: bit.ly/pjciaesi200421
Indonesia has great renewable energy potential, with a target of achieving a 23% renewable energy mix by 2025, but it is difficult to achieve this target. One of the causes is the imbalance of the power purchase agreement (PPA) or PPA which affects the project bankability (ADB 2020).
PPA or PPA is a key instrument for attracting greater private investment and participation in the provision of electricity. The PPA guarantees a flow of payments for an independent power producer (IPP) project from an off-taker. The quality of the PPA will determine whether a project is bankable which makes a lender (lender) finance a project. For this reason, the provisions in the PPA must be able to balance the risk and return on investment that can meet the project lender’s and project sponsor’s project risk criteria.
To answer how bankable PPA, AESI, PJCI and IESR held a discussion. The purpose of this discussion is to obtain input on the parameters and structure of a bankable PPA to accelerate the adoption of renewable energy generation in Indonesia. This input will be conveyed to regulators and to PT PLN.