PLN prepares 30-year power purchase contracts to accelerate waste-to-energy projects

PT PLN (Persero) is preparing a long-term Power Purchase Agreement (PPA) scheme with a 30-year duration to accelerate Waste-to-Energy (PSEL) projects. PLN Director of Project Management and New Renewable Energy, Suroso Isnandar, stated in an official release that the company guarantees it will purchase the electricity generated by partners as the offtaker. Suroso said PLN is ready to absorb the power produced by partners to optimally strengthen the primary energy source portfolio. PLN hopes the certainty of electricity purchase from PSEL projects will attract multinational investors. “Partners need not worry, PLN’s long-term commitment has been proven in various other generation sectors, some even having PPAs exceeding 30 years. This guarantee will be very well maintained,” Suroso said. Suroso assessed that the programme, supported by Presidential Regulation Number 109 of 2025, is a breath of fresh air for the electricity and environmental management ecosystem in the country. Going forward, the PSEL projects, which are now highly sought after for investment, are expected not only to be a solution for addressing the waste emergency status in various regions but also a tactical step in accelerating PLN’s new renewable energy transition to pursue the Net Zero Emissions target by 2060. “In the context of the energy transition from thermal-based to new renewable energy, PSEL adds to our energy source portfolio while simultaneously addressing the waste emergency. Therefore, if this programme needs to be implemented in all cities in Indonesia, PLN is very ready,” Suroso said. Indonesian investment holding company Danantara, through PT Danantara Investment Management, officially handed over Conditional Letters of Award to eight selected partners for the second phase of the PSEL project. The handover marks a new chapter in the development of the second phase PSEL programme, covering eight locations across 20 regencies and cities in Indonesia. Following the handover, all selected partners will proceed to the next stage towards the Final Letter of Award, including the preparation of a Feasibility Study targeted for completion by mid-November 2026, followed by preparations, permitting, and land handover, with groundbreaking targeted for December 2026 to January 2027.