Article

In March 2025, Indonesia's government released Regulation No. 5 on guidelines for power purchase agreements (PPAs) related to renewable energy sources. This regulation outlines frameworks for projects not yet under contract, addressing various aspects like project structure, PPA terms, and force majeure definitions.

While it aims to standardize practices, ambiguities remain regarding PLN's approach to negotiations and risk allocations. Key points include provisions for project structures, capacity payments, and performance guarantees, impacting the bankability of future renewable energy projects.