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Investor Presentaiton

ROOFTOP SOLAR PV Fears of losing revenues, PLN is perceived as unfavored of rooftop solar PV RUEN mandates 45 GW of renewables installed capacity by 2025, of which 6.5 GW should come from solar power plants. Much of this target can be met with the development of rooftop solar PV in the country. The Regulation 49 stipulates that PLN will only compensate 65% of rooftop solar PV electricity exported into the grid. Stakeholders see this as a setback for the rooftop solar PV development in Indonesia and the regulation only aims to prevent PLN from losing revenues as more consumers use the system on their rooftops. The fears of losing revenues, however, are unfounded. By assuming there will be 1 GW of rooftop solar PV by 2020, we calculated that PLN revenues will be only declining by 0.58%, a negligible reduction compared to benefits it brings to the country. When the new regulation is applied to the calculation, PLN revenue is reduced by only 0.52%. 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 4.51% 5.00% 4.00% 3.36% 4.06% 3.00% 3.02% 2.04% 2.00% 1.00% 1.09% 1.84% 2,000 0.58% 0.37% 1,000 0.20% 0.02% 0.98% 0.52% 0.34% 0.00% 0,18% 0.02% 2019 2020 2021 2022 2023 2024 2025 Installed Capacity Rooftop Solar (MW) -Percentage of Rooftop Solar Electricity from PLN Electricity Sales (%) - Percentage of PLN revenue lost (%) -Percentage of PLN revenue lost after MR 49/2018 (%) With the new net metering scheme is seen unattractive and the battery costs continue to decline, a system of rooftop solar PV with batteries will become a more viable option for PLN consumers. When this happens, PLN is expected to see more rapid decline in electricity sales. PLN, therefore, needs to consider this in its business plan or find new business models to mitigate the risk. IESR (Institute for Essential Services Reform) | www.iesr.or.id 14
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