munich, germany, june 20 2013 energy and mineral … · energy and mineral resources for people’s...

Energy and Mineral Resources for People’s Welfare

Munich, Germany, June 20th 2013

MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Alihuddin SitompulDirector of Various New Energy and Renewable Energy


I. ENERGY POLICY 3

II. NATIONAL PRIMARY ENERGY MIX TARGET

4

III. EFFORTS TO INCREASE NRE UTILIZATION

6

IV. NRE DEVELOPMENT AND UTILIZATION

STRATEGY 8

V. STRATEGIC ISSUES IN RELATION WITH


1. ENERGY CONSERVATION: to increase energy efficiency

on supply and demand side, e.g. industrial, transportation,

household and commercial sector.

2. ENERGY DIVERSIFICATION: to increase the share of

new and renewable energy use in the national primary energy

mix. e.g.: RENEWABLE ENERGY

a. Geothermal,

b. Hydro,

c. Bio-energy,

d. Solar,

e. Wind,

f. Ocean wave and current.

NEW ENERGY

a. Liquified Coal

b. Coal Bed Methane

c. Gasified Coal

d. Nuclear

e. Hydrogen

f. Others methane


CURRENT CONDITION

2011

ENERGY ELASTICITY= 1,65NON FOSSIL ENERGY SHARE≈ 5%

2025 TARGETBY PRESIDENTIAL REGULATION NO.

5/2006

ENERGY ELASTICITY LESS THAN 1 IN 2025OPTIMIZING NEW RENEWABLE ENERGY

SOURCES

Biofuel

5%

Geothermal

5%

Nuclear,

Hydro,

Solar,

Wind,

and Other NRE 5%

Liquified

Coal 2%


NO NEW & RENEWABLE ENERGY RESOURCES INSTALLED CAPACITY (IC)RATIO OF

IC/RESOURCES (%)

1 2 3 4 5 = 4/3

1 Hydro 75,000 MW 6,848.46 MW 9.13%

2 Geothermal 29,164 MW 1,341 MW 4.6 %

3 Biomass 49,810 MW 1,644.1 MW 3.3%

4 Solar 4.80 kWh/m2/day 27.23 MW -

5 Wind 3 – 6 m/s 1.4 MW -

6 Ocean 49 GW ***) 0.01 MW ****) 0%

7 Uranium 3,000 MW *) 30 MW **) 0%

*) Only in Kalan – West Borneo

**) As a center of research, non-energy

***) Source: National Energy Council

****) BPPT’s Prototype

NO FOSSIL ENERGY RESOURCESPROVEN RESERVES

(PR)

RATIO OF PR/RESOURCES

(%)

PRODUCTION

(PROD)

RATIO OF PR/PROD(YEAR)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Oil (billion barel) 7,408.24 3,741.33 0.505 0.314 12

2 Gas (TSCF) 150.70 103.35 0.685 2.98 35

3 Coal (billion ton) 161.3 28.17 17 0.317 89

4 Coal Bed Methane (TSCF) 453.3 - - - -

5 Shale Gas (TSCF) 574 - - - -


1. IMPROVING POLICY AND REGULATION

� A few sub-sectors of renewable energy still has not been set. Therefore, GoI continues to improve

the regulation on development and utilization of renewable energy, including the preparation of new

renewable energy government regulations;

2. CREATING THE MARKET

� through the supply and utilization of bio-fuel, obligating the National Electric Company (PT PLN) to

purchase electricity, the application of Indonesian National Standard (SNI), etc;

3. SUBSIDY

� Subsidy for bio-fuel has been allocated since 2009. Subsidies are provided to cover the difference

between fuel prices and biofuel prices; distributed through PT Pertamina;

4. FEED-IN TARIFF

� Be regulated through the Minister of Energy and Mineral Resources Regulation, which comprise the

non-negotiable selling price of electricity generated from renewable energy purchased by National

Electric Company.

5. INCENTIVES AND FACILITIES

� Reduction of taxes and custom duties; simplicity of licensing procedures;

� There will be no tendering process for RE power plant with capacity less than 10 MW (excluding for

Solar PV Power Plant)


6. FUNDING AND OTHER FINANCIAL SUPPORT

� Providing fund to improve modern energy acess in remote and isolated area

7. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES

� Education and training in the field of renewable energy;

� Socialization;

� Improving NRE networks, supporting the establishment of organization/association (IKABI, METI,

etc);

8. INCREASING RESEARCH IN THE FIELD OF NEW & RENEWABLE ENERGY

� Scale up research cooperation;

� Enhance type of research;

9. DEVELOPING COOPERATION WITH OTHER COUNTRIES AND INTERNATIONALORGANIZATION

� Cooperation for capacity building;

� Cooperation for technology transfer;

� Lessons learned for the implementation of new renewable energy policies and programmes;

� Acquire new renewable energy market (biofuel), and promote technology for NRE component.


1. Acceleration of RE utilization in the national electricity supply through the

development of Geothermal and Hydro Power Plant;

2. Enhancement of the electricity access in remote areas, small islands and

borderline with Micro Hydro and Solar Power Plant;

3. Development of Bioenergy Power Plant including the utilization of agricultural

waste and municipal solid waste to provide electricity as well as to preserve the

environment;

4. Development of wind power and ocean energy pilot project as a precondition

prior to the stage of commercialization;

5. Utilization of Biofuel (solid, gas and liquid) to substitute oil;

6. Commercial development of new energy (CBM and shale gas).


1. Enhancing and accelerating investment climate through the

new renewable energy partnership;

2. Knowledge and technology transfer in the field of new

renewable energy and energy conservation ;

3. Enriching partnership in education and capacity building as well

as technical assistance.

Energising Development (EnDev) Indonesia

Technical advisory and Capacity Building to RE off-grid installations, currently to : 136 micro-hydro power plants and 117 PV mini-grids

25.06.2013

25/06/2013

Partners Ministry of Energy and Mineral Resources, EnDev Indonesia (GIZ)

1-day seminar on solar mini-grids in

Indonesia

Envisaged to be in conjunction with:

Renewable Energy Conference and Exhibition (EBTKE CONEX 2013), 21-23 August 2013, Jakarta

Participants: Delegates from 84 Districts from across Indonesia, solar technology suppliers, specialist consultants and rural development NGOs

National Seminar on Solar Mini-grids in Indonesia

AHK Business Trip “PV Hybrid Systems”

25/06/2013

AHK Business Trip on solar PV hybrid systems (supported by the German Federal Ministry for Economics and Technology (BMWi)

Date: 16 – 20 September 2013

Venue: Jakarta, Indonesia

Programme:

• 16 Sep Technical Conference

• 17 – 18 Sep Business Meetings

• 19 – 20 Sep Site Visit

Participants: German technology & service providers, Indonesian key stakeholders (regulators, companies, associations, etc.)

Energy and Mineral Resources for People’s Welfarewww.ebtke.esdm.go.id

Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540

e-mail: [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION


1. CURRENT CONDITION� Hydro Power Plant installed capacity: 5,711 MW

� Geothermal Power Plant installed capacity: 1,341 MW

2. DEVELOPMENT PROGRAM� Improving coordination with permitting authorithy;

� Harmonizing regulation in the field of geothermal and

hydropower;

� Providing technical guidance, socialization and workshops in

order to improve the quality of human resources

� Accelerating the Phase II of 10,000 MW Program

� Increasing investment in geothermal energy sub-sector with:

• Price of electricity (Feed-in Tariff);

• Auction of Geothermal Working Areas (GWA) under the

authority of the Central Government (Mount Lawu and

Ranau Lake);

• Development of 4 sites of geothermal project (exploration

drilling) ;

• Promotion, dissemination of information and cooperation

in geothermal side;

NO AREA

PRICE (cent US$/kWh)

HIGH VOLTAGE

MEDIUMVOLTAGE

1 Sumatera 10 11,5

2 Jawa, Madura and Bali 11 12,5

3 South Sulawesi, West Sulawesi

and Southeast Sulawesi

12 13,5

4 North Sulawesi, Central Sulawesi,

and Gorontalo

13 14,5

5 West Nusa Tenggara and East

Nusa Tenggara

15 16,5

6 Maluku and Papua 17 18,5

GEOTHERMAL FEED-IN TARIFF(MEMR Regulation No. 22/2012)

ROAD MAP OF GEOTHERMAL DEVELOPMENT 2006 - 2025 (As In Presidential Regulation NO. 5/2006 about National Energy

Policy)


1. CURRENT CONDITION� Micro/Mini Hydro Power Plant installed capacity: 230 MW

� Solar Power Plant installed capacity: 27.23 MW

2. DEVELOPMENT PROGRAM� To encourage investment in Micro/Mini Hydro and Solar

PV Power Plant by cooperatives, private and other

business enterprises through the establishment of Feed-

in Tariff for Micro/Mini Hydro and Solar PV;

� Enhancing the capability of domestic manufacturer;

� Improving capacity building and technical assistance;

� Providing government fund (APBN)

HYDRO POWER, SOLAR AND WIND POWER FEED IN TARIFF

(MEMR REGULATION NO 4 YEAR 2012)

FiT is still in subject to revised

� Mini and Micro Hydro will be increase from Rp. 656/kWh to

Rp. 975 – Rp.1,050/kWh

� Solar PV will be USD 25 cents/kWh

WILAYAH

Price for High

Voltage (Rp/kWh)

Price for MediumVoltage

(Rp/kWh)

Jawa and Bali 656 1,004

Sumatera and Sulawesi 787 1,205

Kalimantan, West and

East Nusa Tenggara

853 1,305

Maluku and Papua 984 1,506


1. CURRENT CONDITION� Bioenergy power plant (on-grid) installed capacity: 71

MW

� Bioenergy power plant (off-grid) installed capacity:

612 MW

2. DEVELOPMENT PROGRAM� Appropriate price of electricity (Feed in Tariff);

� Export management to secure the supply of biomass

power plant feedstock;

� Duty exemption of renewable energy equipment and

simplification of the procedure ;

� Coordination with local governments and

stakeholders to increase understanding related to the

utilization of waste into electricity to drive domestic

product.

BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE FEED-IN TARIFF(MEMR REGULATION NO. 04 YEAR 2012)

NO.

ENERGYCAPACIT

YELECTRICITY BUYING

PRICENOTES

Miedium Voltage

1. Biomass Up to 10 MW Rp. 975,- / kWh X F

2. Biogas Up to 10 MW Rp. 975,- / kWh X F Non MSW

3.Municipal Solid

Waste (MSW)Up to 10 MW Rp. 1050,- / kWh Zero waste

4.Municipal Solid

Waste Up to 10 MW Rp. 850,- / kWh Landfill

Low Voltage

1 Biomass Up to 10 MW Rp. 1.325,- / kWh X F

2 Biogas Up to 10 MW Rp. 1.325,- / kWh X F Non MSW

3Municipal Solid

Waste (MSW)Up to 10 MW Rp. 1.398,- / kWh Zero waste

4Municipal Solid

Waste Up to 10 MW Rp. 1.198,- / kWh Landfill

Incentive Factor (F):

Jawa, Bali, Sumatera : F = 1

Kalimantan, Sulawesi, West and East Nusa Tenggara : F = 1,2

Maluku and Papua : F = 1,3

Palm Shell Power Plant

61 MW (86%)

Municipal Soild Waste Power

Plant14,5 MW (19%)

Bioenergy Power Plant Installed Capacity


1. CURRENT CONDITION� Wind Power Plant installed capacity : 1.4 MW

� Ocean current/wave still in the stage of pilot project, a few small-scale pilot (10 kW)

were built, e.g. at Baron Beach, East Nusa Tenggara Province.

2. DEVELOPMENT PROGRAM� Conducting feasibility study and pilot project for wind and ocean current/wave

power in the potential area, e.g East Nusa Tenggara.

� Increasing foreign partnership in terms of capacity building, technology transfer in

the development of wind and ocean current/wave power.

� Encouraging domestic industrial competitiveness to manufacture components of

wind and ocean current/wave power.

� Developing Feed-in Tariff for wind power.


1. CURRENT CONDITION

� Fuel mixture with biofuels in the transportation and

industrial sectors are 7.5% and 2% respectively;

� Installed capacity for biodiesel is 4.2 million kL and

production capacity about 2 million kL;

� 8,446 units of household biogas digester for cooking

were constructed.

2. DEVELOPMENT PROGRAM

� Formulating biofuels market index price based on

economic price;

� Accelerating biofuels distribution infrastructure;

� Reducing cost of biogas investment through specific

funding scheme (Special Allocation Fund (DAK), soft

loans, social assistance, etc.);

� Providing incentives (eg, tax reduction, green

company award).

NATIONAL BIOFUEL PRODUCTION2009 – 2013


� PRODUCTION COST

� The production cost is relatively higher than the conventional energy, means, it is difficult to compete with the

conventional energy.

� INVESTMENT

� The investment cost is quite high. However, investment in new renewable energy industry is quite in demand by

domestic investors.

� Investment for upstream and downstream is not widely carried out in the country; most of the components are still

imported.

� TECHNOLOGY

� Some technologies have been developed by domestic manufacturer, such as small to medium-scale power plant and

biogas technology (non-electric).

� Renewable energy technologies are still provided and dominated by foreign countries.

� RAW MATERIAL AVAILABILITY

� The potential of new renewable energy in Indonesia is very large. However, it still required integrated management in

the supplying and processing raw materials, especially for bioenergy feedstock.

� HUMAN RESOURCE

� Quantity and quality of human resources in the field of renewable energy is still quite limited.

� Communities’ acceptance for new renewable energy is still relatively low, since most of the people feel more

comfortable using conventional energy.


NO RENEWABLE ENERGY STRATEGIC ISSUE

1 GEOTHERMAL- 6 STRATEGIC

ISSUES

1. Acceleration of geothermal development;

2. Revision of Laws No. 27 Year 2003 on Geothermal;

3. The second revision of Government Regulation No. 59/2007 jo. Government Regulation

70/2010 on Geothermal Working Activity;

4. Revision of MEMR Regulation No. 11/2009 on Implementation Guidelines for Geothermal

Operations;

5. Total production of geothermal steam;

6. The number of non-tax revenues of the Geothermal.

2 BIOENERGY - 6 STRATEGIC

ISSUES

1. Feed in Tariff (FIT) for utilization of Municipal Solid Waste for power plant;

2. Increase the utilization of Biofuels to be blended with PSO fuel;

3. Increase the utilization of Biofuels to be blended with non PSO fuel;

4. Increase the ability to supply bioenergy for domestic needs;

5. Increase the installed bioenergy power plant (on-grid);

6. Enhance the role of NREEC in regional development through the development of Self Sufficient

Village Program (Desa Mandiri Energi)-based on biofuel.

3 VARIOUS NEW AND RENEWABLE

ENERGY - 6 STRATEGIC ISSUES

1. Increase national electrification ratio through the utilization of various new and renewable

energy;

2. Development of Self Sufficient Village Program through the utilization of solar and hydro energy;

3. Encourage private sector participation in the utilization of wind, hydro and solar energy;

4. Harmonization of inter-sectoral policies related to renewable energy development;

5. Sustainability of NRE power plant;

6. Increase power plant capacity of various NRE.

munich, germany, june 20 2013 energy and mineral … · energy and mineral resources for people’s...

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