Training – Power Purchase Agreement for Solar Power Plant

It is a pleasure for us to have our power and renewable partner Kirana Sastrawijaya to speak in Business Law Society FH UI Training on the Law of Energy and Mineral Resources 2022 event, bringing the topic of “Expounding the Legal and Busines Aspects of Solar Power Plant’s Potential as The Renewable Energy in Indonesia”. We discussed “Power Purchase Agreement for Solar Power Plant.” The development of solar power plants in Indonesia has significant potential opportunity and therefore the topic of solar power plants PPA has always been interesting to be discussed. It is also fascinating to us that students are aware and interested in this particular industry.

In the session, we discussed the fundamentals of a PPA for solar power plant, how it is regulated under the laws and regulations, and essential clauses in a solar PPA such as electricity tariff determination, period of PPA, COD provisions, rights and obligation of the seller and buyer, local contents requirements, risk allocation (construction risk, operational risk, demand risk), performance bonds provision, dispute settlement provision, BOO and BOOT schemes, and TAP and TOP payment schemes. We hope our sharing which is supported by our long track record and experience in solar power projects development in Indonesia could give meaningful insight to the participants.

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