Document background
The Power Purchase Agreement Renewable (Energy) is a crucial document in Indonesia's renewable energy sector, typically used when an independent power producer intends to develop and operate a renewable energy facility and sell the generated power to PT PLN (Persero), Indonesia's state electricity company. The agreement is structured within the framework of Indonesian energy regulations, particularly Law No. 30 of 2009 on Electricity and recent renewable energy regulations such as Presidential Regulation No. 112 of 2022. The document comprehensively addresses project development, operational requirements, pricing mechanisms, and risk allocation, while incorporating specific provisions for renewable energy generation such as intermittency management and grid stability. It serves as the foundational agreement for project financing and determines the project's long-term viability, typically covering a 20-30 year operational period.
