Establishment of Energy Conservation Services Companies ( Ministerial Regulation No.14/2016)

Country / jurisdiction: Indonesia · Year: 2016 · Status: In force · Level: National · Type: Voluntary

In order to develop energy conservation service business activities that are independent, reliable, transparent, competitive, and efficient, it is necessary to regulate the operation of energy conservation services businesses. Based on these considerations, the Minister of Energy and Mineral Resources regulates the Implementation of Energy Conservation Services Business based on the following terms:

The Energy Conservation Services Business consists of:

• planning or formulation of the Energy Efficiency Project Concept;

• investment standard energy audit (investment grade energy audit);

• Energy Efficiency Project financing;

• installation and / or construction work of the Energy Efficiency Project;

• monitoring or operating, maintaining and repairing energy installations; and / or

• Measurement and Verification (Measurement and Verification) Energy Savings performance.

The Energy Conservation Services Business can be carried out based on the following business patterns:

• Guaranteed energy savings, or

• Energy savings that are shared (shared saving).

Companies in implementing Energy Conservation Services Business can apply for a registered certificate. The application for a registered certificate as referred to in paragraph (1) shall be submitted by attaching the following conditions:

• deed of incorporation and SIUP of the Company;

• having 1 (one) or more Energy Conservation Experts, proven by an energy auditor certificate;

• complete list of supporting equipment; and

• financial capabilities that have been verified by financial audit institutions or reported to state financial institutions.

Companies that have obtained a registered certificate provide the ESPC model. The ESPC model as referred to in paragraph (1) contains at least:

• a description of the services offered;

• details of equipment installed or retrofitted and their respective specifications;

• specifications for installation and commissioning purposes;

• The agreed baseline as a guideline for payment;

• Energy Saving calculation methodology;

• Measurement and Verification (Measurement and Verification) Performance of Energy Saving, operation and maintenance;

• terms and conditions of payment by Service Users;

• asset ownership rights, in the event that the Company implements a shared saving business pattern;

• failed project conditions and their handling; and

• the terms of liability for deficiencies in the calculation of Energy Savings through guaranteed savings, in the event that the Company implements a Guaranteed Energy Saving business pattern.

Guidance and supervision of the operation of the Energy Conservation Services Business is carried out by the Minister of Energy and Mineral Resources through the Director General of New and Renewable Energy and Energy Conservation.

Official source: https://jdih.esdm.go.id/peraturan/Permen%20ESDM%20No.%2014%20Tahun%202016.pdf