MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION Alihuddin Sitompul Director of Various New Energy and Renewable Energy Jakarta, September 16th 2013 Energy and Mineral Resources for People’s Welfare I. ENERGY POLICY 3 II. NATIONAL PRIMARY ENERGY MIX TARGET 4 III. NATIONAL ELECTRIFICATION RATIO 2013 6 IV. EFFORTS TO INCRESE NRE UTILIZATION 8 V. UPDATE ON POLICY AND REGULATIONS 10 VI. NRE DEVELOPMENT CHALLENGES 15 Energy and Mineral Resources for People’s Welfare 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.: NEW ENERGY a. Liquified Coal b. Coal Bed Methane c. Gasified Coal d. Nuclear e. Hydrogen f. Others methane RENEWABLE ENERGY a. b. c. d. e. f. Geothermal, Hydro, Bio-energy, Solar, Wind, Ocean wave and current. Energy and Mineral Resources for People’s Welfare CURRENT CONDITION 2011 2025 TARGET BY PRESIDENTIAL REGULATION NO. 5/2006 Biofuel 5% ENERGY ELASTICITY= 1,65 NON FOSSIL ENERGY SHARE 5% Energy and Mineral Resources for People’s Welfare Nuclear, Hydro, Solar, Wind, and Other NRE 5% Geothermal 5% Liquified Coal 2% ENERGY ELASTICITY LESS THAN 1 IN 2025 OPTIMIZING NEW RENEWABLE ENERGY SOURCES 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 RESOURCES PROVEN RESERVES (PR) RATIO OF PR/RESOURCES (%) PRODUCTION (PROD) RATIO OF PR/PROD (YEAR)*) 1 2 3 4 5 = 4/3 6 7 = 4/6 7,408.24 3,741.33 0.505 0.314 12 1 Oil (billion barel) 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 - - - - Energy and Mineral Resources for People’s Welfare III. NATIONAL ELECTRIFICATION RATIO 2012 NAD 90,96 % Sumut 86,70% Kepri 83,56% Riau 85,09% Category : Kaltim 73,08% Kaltim 73,32% > 60 % 41 - 60 % Sulut Gorontalo 76,22% 60,99% Kalbar 71,46% Malut 74,12% 20 - 40 % Papua Barat 67,88% Sumsel 73,97.% Sumbar 76,14% Sulbar 66,65% Sulteng 66,83% Babel 94,13% Jambi 70,37% Jakarta 99,99% Bengkulu 79,37% Lampung 74,91% Kalsel 76,74% Sultra 60,53% Bali 74,31% Sulsel 76,29% Banten 77,52% Jabar Jateng 76,03% 79,95% DIY 77,26% Jatim 74,31% Maluku 72,07% Papua 34,62% NTT 53,42% NTB 53,63% GROWTH (YEAR) ELECTRIFICATION RATIO PLANNING 2006 2007 2008 2009 2010 2011 2012 2013 2014 63% 64.3% 65.1% 65.8% 67.2% 72.95% 76.56% 79.3% 81.4% Energy and Mineral Resources for People’s Welfare No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Province Regency Riau Lampung Sumatera Selatan Sumatera Utara Jawa Timur Kalimantan Timur Nusa Tenggara Timur Nusa Tenggara Timur Kuantan Singingi Lampung Barat Banyuasin Nias Sumenep Kutai Barat Timor Tengah Selatan Sumba Tengah Nusa Tenggara Barat Papua Barat Papua Papua Papua Papua Papua Papua Papua Papua Papua Papua Papua Sumbawa Kaimana Mappi Kep. Yapen Tolikara Tolikara Tolikara Tolikara Mamberamo raya Mamberamo raya Mamberamo raya Mamberamo raya Mamberamo raya TOTAL Energy and Mineral Resources for People’s Welfare Unit Capacity (kW) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 100 75 150 50 50 100 30 50 30 75 50 150 50 50 50 50 150 50 75 150 100 21 1.635 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) Energy and Mineral Resources for People’s Welfare 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 INTERNATIONAL ORGANIZATION 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. Energy and Mineral Resources for People’s Welfare Energy and Mineral Resources for People’s Welfare 1. CURRENT CONDITION Geothermal Power Plant installed capacity: 1,341 MW 2. DEVELOPMENT PROGRAM Improving coordination with permitting authorithy; Harmonizing regulation in the field of geothermal; 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; Energy and Mineral Resources for People’s Welfare GEOTHERMAL FEED-IN TARIFF (MEMR Regulation No. 22/2012) PRICE (cent US$/kWh) NO AREA HIGH VOLTAGE MEDIUM VOLTAGE 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 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 HYDRO POWER AND WIND POWER TARIFF (BASED ON MEMR REGULATION NO 4 YEAR 2012) 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 Feedin Tariff for Micro/Mini Hydro and Solar PV; Enhancing the capability of domestic manufacturer; Improving capacity building and technical assistance; Providing government fund (APBN) Price for High Voltage (Rp/kWh) Price for Medium Voltage (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 AREA SOLAR POWER (PHOTOVOLTAIC) POWER TARIFF (BASED ON MEMR REGULATION NO 17 YEAR 2013) Notes : • National bidding process for Solar PV Quota will be announced Price (cent USD/kWh) Incentive for Local Module (cent USD/kWh) 25 30 by October 2013 Price for Mini and Micro Hydro will be revised to Rp. 656/kWh to Rp. 700 – Rp.850/kWh Energy and Mineral Resources for People’s Welfare 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. ENERGY CAPACITY ELECTRICITY BUYING PRICE NOTES Miedium Voltage 1. Biomass Up to 10 MW Rp. 975,- / kWh X F Up to 10 MW Rp. 975,- / kWh X F Non MSW Up to 10 MW Rp. 1050,- / kWh Zero waste Up to 10 MW Rp. 850,- / kWh Landfill 1 Biomass Up to 10 MW Rp. 1.325,- / kWh X F 2 Biogas Municipal Solid 3 Waste (MSW) Municipal Solid 4 Waste Up to 10 MW Rp. 1.325,- / kWh X F Non MSW Up to 10 MW Rp. 1.398,- / kWh Zero waste Up to 10 MW Rp. 1.198,- / kWh Landfill 2. Biogas Municipal Solid 3. Waste (MSW) Municipal Solid 4. Waste Low Voltage Incentive Factor (F): Jawa, Bali, Sumatera Kalimantan, Sulawesi, West and East Nusa Tenggara Maluku and Papua : Municipal Soild Waste Power Plant 14,5 MW (19%) :F=1 : F = 1,2 F = 1,3 Bioenergy Power Plant Installed Capacity Palm Shell Power Plant 61 MW (86%) Energy and Mineral Resources for People’s Welfare 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. Energy and Mineral Resources for People’s Welfare 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. Energy and Mineral Resources for People’s Welfare MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540 e-mail: bahan_ebtke@yahoo.com Energy and Mineral Resourceswww.ebtke.esdm.go.id for People’s Welfare NO RENEWABLE ENERGY 1 GEOTHERMAL- 6 STRATEGIC ISSUES 2 BIOENERGY - 6 STRATEGIC ISSUES 3 VARIOUS NEW AND RENEWABLE ENERGY - 6 STRATEGIC ISSUES STRATEGIC ISSUE 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. 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. 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. Energy and Mineral Resources for People’s Welfare 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. Energy and Mineral Resources for People’s Welfare