Indonesia invites bids for solar and bioenergy projects

Out-Law News | 23 Dec 2020 | 4:08 am | 1 min. read

Indonesian state electricity company Perusahaan Listrikk Negara (PLN) has invited bids from developers for solar and bioenergy projects.

To meet the pre-qualification criteria for joining the bidding process, interested bidders should be from Indonesia or any country with diplomatic relations with Indonesia. They will have to submit three years of financial statements, and a financial credit rating report from D&B, S&P, Moody's or Fitch.

Additionally, bidders should have successfully executed at least one independent project; engineering, procurement, and construction (EPC) contract; or an operation & maintenance (O&M) contract in last ten years. The project should have been in successful operation for at least one year.

Bids should be submitted through the PLN electronic procurement portal. Interested bidders will have to pay a registration amount of Rp 2.5 million (US$176m) to join the tender. There is no deadline for submitting bids and PLN will regularly carry out the evaluation process.

The Asian Development Bank (ADB) in November approved a US$600m loan for PLN to expand electricity access in eastern Indonesia. The Indonesian government is targeting a 23% new and renewable energy mix for 2025, and requires an additional 10 gigawatts (GW) renewable energy to meet this target.

Toby Evans of Pinsent Masons, the law firm behind Out-Law, said, "Indonesia has set ambitious renewable energy generation targets over the coming years and PLN has an important part to play in achieving these. It is important that prospective project developers are aware of PLN’s procurement processes and policies, including pre-qualification. While we have in the past noted certain issues around the pre-qualification process, including delays and a lack of transparency and certainty, it is definitely an exciting time to be involved in Indonesian renewable energy and developers will be interested in the opportunities presented by this growing sector."