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PLN Revenue Predicted to Evaporate Rp 5.7 T/Year Due to Rooftop PLTS

Jakarta

The Ministry of Energy and Mineral Resources will revise the Regulation of the Minister of Energy and Mineral Resources Number 49 of 2018 to boost the utilization of solar power plants (PLTS) roof which is currently minimal. Efforts to encourage rooftop solar power are projected to cut PT PLN (Persero) revenue. Here are the effects:

1. Coal Use Reducing By Nearly 3 Million Tons

The government intends to encourage the use of rooftop solar power plants to 3.6 giga watts (GW) in the next few years. Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, explained that the use of rooftop solar power plants will have an impact on reducing coal use by 2,978,813 tons.

2. PLN Revenue Potential to Shrink Rp 5.7 T/Year

The next impact is that PLN’s revenue will potentially decrease by IDR 5.7 trillion or 2.21% per year.

“Then in terms of electricity exploitation, it is true that later it will have the potential to reduce PLN’s income. If we calculate the figure of 3.6 GW, this is a reduction of Rp. 5.7 trillion. If 1 GW is Rp. 5.7 trillion divided by 3.6 the figure is probably around Rp. 1.2 trillion or Rp 1.3 trillion,” he said at a press conference, Friday (27/8/2021).

“It is undeniable that due to self-production, consumption to PLN will decrease but this is not a loss. This is the potential for reduced PLN income from consumers who use rooftop solar power plants,” he added.

3. PLTS Development Absorbs 121 Thousand Workers

Another impact is the addition of the workforce. According to him, the construction of this rooftop PLTS has the potential to absorb 121,500 workers. Then, an increase in investment with a potential of Rp 45 trillion to Rp 63.7 trillion for the physical development of PLTS and Rp 2.04 trillion to Rp 4.08 trillion for the procurement of export-import kWh.

Not only that, the use of rooftop solar panels also has the potential to reduce subsidies and compensation, with details of subsidies of Rp. 0.9 trillion and compensation of Rp. 2.7 trillion.

Meanwhile, the Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, said that the projected use of 3.6 GW PLTS will not happen in the near future, but in the next few years.

“3.6 GW in this case, of course, not today or the day after tomorrow, but maybe this is projected to grow gradually until 2024 or 2025 at the latest,” he said.

(acd/eds)

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