Local content rules hampering 9 renewable energy projects in Indonesia

The Cirata floating solar farm in in West Java. (Photo: PLN)

Nine new renewable energy projects totaling Rp 51 trillion have faced financing dry up as international lender’s unwillingness to meet government local content requirements (LCR), state-owned electricity firm PLN said on 26.

Zainal Arifin, executive vice president of renewable energy at PLN, mentioned that financing issues have resulted in delays in developing the renewable energy capacity outlined in the government’s electricity procurement plan, alongside other factors such as ongoing oversupply of electricity.