Indonesia issues sovereign guarantees for power projects

Despite the adoption of a new electricity law in 2009 liberating the Indonesian electricity market, most electricity generated in Indonesia is sold to PLN, the state-owned utility, under 25 or 30-year power purchase agreements (PPAs).

One of the challenging dynamics of the Indonesian electricity market is the fact that PLN sells electricity to consumers at less than PLN’s cost of generation and the tariff payable to independent power producers (IPPs).

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Posted June 5, 2012 by repit in News

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