ESI Emphasises Need for Compensation Funds for PLN Regarding Waste-to-Energy Projects
The Managing Director of the Energy Shift Institute (ESI), Putra Adhigantara, has assessed the need for compensation funds for PT PLN (Persero) in the implementation of Waste-to-Energy (PSEL) facility projects. He emphasised the importance of ensuring that PLN receives smooth compensation payments, as these waste management projects require PLN to purchase electricity at prices two to three times higher than their standard rates.
According to Putra, given PLN’s current challenging financial situation, PSEL projects could become an additional burden that impacts PLN’s operations if not properly compensated. Beyond compensation, Putra also stated that the government must ensure professional waste management to maintain a stable supply. He noted that PSEL is expected to provide more adequate waste handling compared to traditional landfills.
PT PLN (Persero) continues to strengthen its commitment to supporting the government’s sustainable waste management programme through the purchase of electricity generated from the Legok Nangka Waste-to-Energy facility in Bandung Regency, West Java. As part of the support for this project, PLN signed a Power Purchase Agreement (PPA) in March 2024 with PT Jabar Environmental Solutions (PT JES), the project executing body appointed by the West Java Provincial Government. Through this agreement, electricity generated from the Legok Nangka PSEL will be distributed into the PLN power system for public use.
Suroso Isnandar, PLN’s Director of Project Management and New and Renewable Energy, stated that the company is ready to follow government directives in supporting PSEL, specifically the Legok Nangka project, as a real solution to the waste emergency and a step towards energy self-sufficiency. The agreed 20-year PPA period represents PLN’s commitment to the sustainability of the Legok Nangka PSEL. Through this agreement, PLN provides certainty for the purchase of electricity, thereby supporting the sustainable development of waste-to-energy projects.
“PLN is ready to execute the PPA in accordance with government directives. We will absorb the electricity production generated from this waste processing and distribute it to the community. Through this 20-year PPA, we are providing the certainty required for this project to operate sustainably,” said Surolo.