PLN was initially scheduled to seal deals for 64 renewable projects with combined capacity of around 380MW.

However, prospective developers of 17 mini hydropower plants and one biogas plant decided to pull out from the agreements in what appears to be disagreement over the electricity prices set in the PPAs.

“It doesn’t mean that the 18 projects have been cancelled. Maybe it’s just because the developers weren’t able to attend the event yesterday,” PLN renewable energy division head Tohari Hadiat said on Thursday.

“We’re still trying to find out what the real problem is.”

Some developers had demanded the government review the electricity prices set in the PPAs, which are calculated in accordance with Energy and Mineral Resources Minister Decree No 12/2017.

The decree caps electricity rates from renewable sources, except geothermal and waste, at 85 per cent of the local electricity supply costs if they exceed the national average.

PLN still uses the decree as a reference, even though the ministry has amended it by passing Decree No 43/2017, which exempts hydropower plants from the 85-per-cent cap.