Jakarta, INTI - PT PLN (Persero) is preparing a Power Purchase Agreement (PPA) with a term of up to 30 years to absorb electricity from waste-to-energy projects. This long-term contract scheme aims to provide business certainty to investors, as interest in waste-to-energy projects increases following the government's issuance of Presidential Regulation No. 109 of 2025.
PLN's Director of Project Management and New and Renewable Energy, Suroso Isnandar, emphasized PLN's readiness to become an offtaker, or buyer, of electricity generated from WET projects. This will strengthen the energy mix and address urban waste problem.
"We guarantee our partners that the electricity they generate will be taken by PLN as the offtaker. PLN's long-term commitment has been proven in various other power generation sectors, even with PPAs of more than 30 years," he said.
Suroso stated that waste-to-energy projects have received a positive response from business players because it offers dual benefits: expanding the renewable energy portfolio and providing a waste management solution. He added that PLN is ready to support project implementation in various cities across Indonesia as part of the energy transition and waste emergency response.
Investment and Carbon Trading Opportunities
Meanwhile, Danantara’s Chief Investment Officer, Pandu Sjahrir, said that waste-to-energy projects attract the attention of domestic and international investors. According to him, the project is a green investment opportunity attracting interest from various parties.
Minister of Environment, Jumhur Hidayat, assessed that waste-to-energy development also has the potential to generate additional economic value through carbon trading. Emission reductions from waste management can be converted into carbon credits and traded on the carbon market.
Conclusion
PT PLN (Persero) is preparing a 30-year PPA to absorb electricity from waste-to-energy projects to provide business certainty for investors. PLN stated its readiness to become the offtaker of waste-to-energy electricity because this project is considered to strengthen the energy mix and help address urban waste issues. Domestic and international investor interest in the project is also said to be high.
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