Assessing The Current Indonesia’s Electricity Market Arrangements and The Opportunities to Reform
Article Metrics: (Click on the Metric tab below to see the detail)
Existing subsidy arrangements and institutional settings in the Indonesian electricity sector distort investment decisions and lead to higher cost. Electricity supply is characterized by natural monopoly characteristics, requiring different management by governments than sectors with more straightforward market characteristics. Many countries have undergone significant re-structuring of their electricity sectors, away from one, state owned and vertically integrated monopoly supplier to a setting whereby competition has emerged either at the generation level and/or the retail level. Transmission and distribution networks are typically heavily regulated and transparent access arrangements are put in place as part of the restructuring efforts. The analysis showed that the current structure of Indonesia’s electricity sector firmly within Model 2 (the single buyer model) and highlights that Indonesia is currently towards the less-competitive end of the spectrum of Model 2, identifying significant potential for efficiency enhancing reforms within this structure. Constitutional limitations have hampered previous efforts to restructure the sector in Indonesia but there is significant room for incremental reform to improve incentives in the sector and reduce the cost of generation in the process.
The Authors submitting a manuscript do so on the understanding that if accepted for publication, copyright of the article shall be assigned to International Journal of Renewable Energy Development and Center of Biomass and Renewable Energy, Department of Chemical Engineering Diponegoro University as publisher of the journal.
Copyright encompasses exclusive rights to reproduce and deliver the article in all form and media, including reprints, photographs, microfilms and any other similar reproductions, as well as translations. The reproduction of any part of this journal, its storage in databases and its transmission by any form or media, such as electronic, electrostatic and mechanical copies, photocopies, recordings, magnetic media, etc. , will be allowed only with a written permission from International Journal of Renewable Energy Development and Center of Biomass and Renewable Energy, Department of Chemical Engineering Diponegoro University.
International Journal of Renewable Energy Development and Center of Biomass and Renewable Energy, Department of Chemical Engineering Diponegoro University, the Editors and the Advisory International Editorial Board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in the International Journal of Renewable Energy Development are sole and exclusive responsibility of their respective authors and advertisers.