PPA: What are the main issues we observe in power purchase agreements in the Indonesian power industry?
* PPA for certain hydropower projects prohibits a developer from divesting the project before the fifth year from COD which increases the risks that ""stalled"" projects could not be restarted.
* A hardship and restructuring clause is inserted that would allow unilateral restructuring of the material terms, including tariff adjustments
* Any deemed dispatch or deemed commissioning payments by an IPP would be offset against any payment for energy that PLN would otherwise be required to pay in excess of the take-or-pay amount
* Any rights to green attributes including carbon credits would be appropriated by PLN
For more information, these and other issues are set out in detail in the CIPP specifically in Section 8.4.2 and on Table 8.4-1 on page 199.
