Procurement of RE: What are the suggested plans for improving PLN’s procurement process to encourage the growth of renewable energy?
The CIPP has identified several suggestions that is intended to help spur the growth of renewale energy projects in Indonesia. These include:
* Project preparation – De-risking the initial stages of project development could be done by enhancing PLN’s project pre-development stage, for example by providing land and conducting a grid connection assessment — with possible add-ons including securing permits or reserving capacity in the grid, conducting an early-stage Environmental and Social Impact Assessment and providing preliminary measurement data on RE sources.
* Land acquisition – PLN can either procure land directly or make land available for project developers on a “lease” basis. Alternatively, land could be secured in advance of a procurement process, including by completing agreeing on a binding price with the landowner.
* Internal capacity at PLN — Increasing the number of PLN staff in charge of procurement may be necessary to realize JETP targets as PLN will need to procure new RE capacity at 10 to 20 times the rate of recent years.
These and other issues are set out in detail in the CIPP specifically in Section 8.3.2.1 to 8.3.2.3.