Len: Installing Rooftop Solar, Pertamina Gas Stations Save Up to 20% Power Cost

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 688.Pers/04/SJI/2019

Date: 30 November 2019

Len: Installing Rooftop Solar, Pertamina Gas Stations Save Up to 20% Power Cost

139 gas filling stations belonging to PT Pertamina Retail currently use rooftop solar system to generate power. The installation of the rooftop solar system, which was done by PT Len Industri (Persero), can save the power cost of up to 20% compared to when the stations did not have these rooftop solar.

"PT Len installed rooftop solar generating a total of 1.3 MWp (Mega Watt peak) at 139 gas stations belonging to PT Pertamina Retail. The saving is up to 20%," informed Made Sandika, Marketing and Sales Manager of Energy and Power System Business Unit of PT Len before the participants of Thematic Bakohumas of Ministry of EMR in Bandung, Thursday (28/11).

For example, the solar panel installed at Pertamina's Kuningan station in Jakarta produces a total capacity 60,000 Wp under a hybrid system. For gas stations on-grid with PLN's system, a hybrid system is installed in case of power blackout.

Made claims with the current system his company can push electricity price down by 20%, at about Rp 1,200 per Watt. "We get this cheaper price by reducing the EPC (Engineering, Procurement, & Construction) costs, and we get funding with low interest, at about 5-6%," said Made.

Made adds that PT Len get the low interest because it does not borrow from conventional banks but instead from Green Fund (fund from exploration or energy conservation activities saved at banks). "We use Green Fund, because if the funding is from conventional banks which generally charge a 9%-11% interest, we can't give you the Rp 1,200 price," continued Made.

The cooperation between PT Len and PT Pertamina Retail is not power purchase but instead equipment rent so it does not violate applicable laws and regulation. "With Pertamina Retail, we apply an SOE synergy. The concept is direct appointment. We're not engage in power purchase but we rent out the equipment. It so happens the equipment generates electricity and it so happens that the electricity generated is cheaper," he added.

Made also explains that rooftop solar system installed at Pertamina's gas stations have local content of 43.5% with estimate Internal Rate Of Return (IRR) 10 years and lifetime 20 years.

The installation of rooftop solar systems at Pertamina gas stations is part of the synergy between State-Owned Enterprises (SOE) to increase the utilization of new, renewable energy which is currently still low at 9.76 GW or 2.2% of total potential 442 GW.

The cooperation is also aimed to support the government's program in realizing 23% target in the National Energy Mix from new, renewable energy by 2025 with a 6.5 GWp (Giga Watt peak) from solar power plants. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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