Client Newsletter – The 2017 PLN Electricity Generation Cost (BPP): An Overview
Through Ministry of Energy and Mineral Resources (“MEMR”) Decree No. 1772 K/20/MEM/2018 dated 29 March 2018 (“2017 BPP Decree”), the MEMR has determined the 2017 Electricity Generation Cost (Biaya Pokok Penyediaan Pembangkitan (“BPP”)) of PT PLN (Persero) (“PLN”) which will be used as the reference for determining the electricity tariff for several types of power projects awarded between 1 April 2018 and 31 March 2019.
Under the 2017 BPP Decree, the 2017 national BPP of PLN is set at Rp1,025/kWh or US$7.66 cents/kWh, increased by Rp42/kWh (around 4.3%) compared to PLN’s BPP for 2016 which was set at Rp983/kWh or US$7.39 cents/kWh.
Please see our newsletter on this here.