The Institute for Essential Services Reform (IESR) is advocating for the incorporation of a power wheeling scheme in Indonesia's New and Renewable Energy Bill (EBET Bill), asserting that it could significantly expedite the country's adoption of renewable energy and aid in achieving net zero emissions (NZE) by 2060.
Fabby Tumiwa, Executive Director of IESR, emphasized the importance of the power wheeling scheme, stating, “The electricity network should be accessible to other parties to distribute electricity from the generator to the user, providing revenue for PLN through network rental fees.”
The institute highlighted potential benefits including improved electricity supply reliability and operational cost efficiency. It also sees the scheme fostering cooperation between business sectors and facilitating broader deployment of renewable energy technologies across industrial and transportation sectors.
To ensure effectiveness towards NZE goals, Tumiwa emphasized restricting the shared network to renewable energy generation, enabling wider access to energy sources. “The development of renewable energy is very dependent on PLN, which buys and distributes electricity according to the increase in demand,” he added.
Deon Arinaldo, Program Manager at IESR, underscored the scheme's investment potential, noting, “The power wheeling will open up demand for renewable energy from customers, especially industrial groups, thus attracting the development of renewable energy projects and integration into the PLN network.”
IESR called on lawmakers to enact clear guidelines to safeguard reliability and security of supply, stressing the need for transparent rules on wheeling tariffs.
The institute urged swift action from the House of Representatives and the government to establish the power wheeling scheme in the EBET Bill, aiming to optimize benefits for sustainable industries and attract investment in renewable energy projects across Indonesia.
