Policy Assessment of Net Metering: The Case of Medium Voltage Industrial Consumer in Indonesia

The use of clean energy source in industrial sector becomes important due to carbon tax policy. This policy will affect the price of the industrial product due to the additional charge of emissions generated by fossil source. Solar PV Net Metering (NEM) is one of the industrial consumer strategies to avoid carbon tax. Moreover, NEM is used to incentivize the distributed generation owner to promote clean energy. Aim of this work is to evaluate Indonesia net metering policy from large medium voltage industrial consumer's and utility company point of view. In this study, exported energy from large industrial prosumer is evaluated based on existing net metering policy by some simulation and scenarios based on real case. The result shown Indonesia latest NEM policy has not been able to give both side optimal benefit. Capacity charge rules affecting export electricity from prosumer to grid unable to reduce electricity bills. Capacity charge calculation need to re-formulated. From utility side, NEM cause rising number of excess power and increasing cost of the system due to addition of reserve margin cost and not sold energy.