#1ENERGI DANS SUMBER ER DAYA MINERAL Development of New & Renewable Energy and Energy Conservation in Indonesia Presented at: Global Workshop On Clean Energy Development Washington DC, 3-8th December 2012 ENERGI DAN SUME © DGNREEC 2012#2OUTLINE I. Energy Condition II. Energy Policy III. New, Renewable Energy and Energy Conservation (NREEC) Development A. Solar Energy B. Geothermal C. Bioenergy D. Energy Conservation IV. Challenges & Opportunities V. Conclusion 2#3I. ENERGY CONDITION#4Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources ENERGY CONDITION OF INDONESIA National Energy Mix Total on 2010 1138 million BOE Geo 2.1% Biomass /fuEl Hydro 3.9% Gas 20.0% 0.9% Oil 48.4% Coal 24.7% Elasticity of Energy = 1,60 Share of Non Fossil Energy ≈ 6.9% 1. The average of growth rate of energy consumption is 7% per year; 2. High dependence on fossil energy while it reserves are more limited; 3. Utilization of renewable energy is still low (6.9%) and implementation of Energy Conservation is not optimal; a. 4. Public access to energy (modern) is still limited: Electrification ratio of year 2011 is 72.95 % (27.05% of households not yet electrified); Less of development of energy infrastructure particularly in rural / remote areas and outer islands. b. 5. Linkage to environmental issues: a. Mitigation of climate change; b. C. Carbon trading; National commitment to reducing emissions 26% by 2020; © DGNREEC 2012 4#5II. ENERGY POLICIES#6Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources POLICY DIRECTION NRE BAU Presidential Regulation TARGET 2025 3% No. 5/2006 Geo Hydro 2.1% Bioma ss/fuEL NRE 3.9% 0.9% Gas 17% 16.4 Coal 21% Oil 23.7 Gas 24.7% Oil 20% % % 20.0% 4.5% 42% Gas Oil 48.4% Coal 19.7 Coal 34% 30% 35.7 33% % % 1649 1138 MillionBOE MBOE 2419 MBOE NRE 6.9% Coal 24.7% Gas 20.0% Oil 48.4% 2010 2015 2020 Source: DGNREEC Note: 1 TOE = 7,33 BOE 3298 Million BOE 3200 Million BOE 3,1% 2785 Million BOE 34.6% 17% 33% 20,6% 30% 41.7% 20% PRIMARY ENERGY CONSERVATION (15.6%) 3.6 CBM 16.7 RE 36.3% Coal 23.7 Oil ENERGY DIVERSIFICATION 2025 © DGNREEC 2012 6#7Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources TRANSFORMATION PARADIGM OF ENERGY MANAGEMENT ENERGY SUPPLY SIDE MANAGEMENT I SUPPLY Fossil Energy with any any cost DEMAND Inefficient Sectoral Energy Consumption: (Even subsidized) Renewable Energy acts as an alternative Household Transport Industry Commercial ENERGY DEMAND SIDE MANAGEMENT DEMAND SUPPLY Efficient Sectoral Energy Demand: Household Transport Industry Commercial Maximize the supply and utilization of New Renewable Energy, with Avoided Fossil Energy Costs (DISVERSIFICATION (CONSERVATION) Fossil Energy Act as balancing factor Existing: Future: 1. Energy consumption is not efficient ■ 1. 2. Energy needs is fulfilled by fossil energy with any cost, and even subsidized | 2. 3. 4. Renewable Energy acts as an alternative only Unutilized Renewable Energy sources are wasted 3. 14 God's gift Efficient energy consumption Maximize the supply and utilization of renewable energy, at least with avoided fossil energy costs and even can be subsidized Fossil energy acts as balancing factor NEP Unutilized fossil energy sources is legacy for next SUME generation or export commodity © DGNREEC 2012#8Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources TWO MAIN POLICIES 1. Energy Conservation to improve efficiency in energy utilization from up-stream up to down-stream (Demand Side) i.e industrial, transportation, household and commercial sector 2. Energy Diversification to increase new renewable energy share in national energy mix (Supply Side) as below Renewable Energy New Energy a. Liquefied Coal, a. Geothermal, b. Coal Bed Methane, b. Bioenergy, C. Gasified Coal, c. Hydro, d. Solar, d. Nuclear, e. Hydrogen, f. Other Methanes. e. Wind, f. Ocean. ENERGI DAN SUM © DGNREEC 2012 8#9Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources DEVELOPMENT OF GREEN AND CLEAN ENERGY UNFCCC *) Reg Act 10/1997 Reg Act 27/2003 Reg Act 30/2007 Reg Act 30/2009 Policy Directives President RI in Tampak Siring (Bali) 2010 Climate Change Mitigation No.8 Energy Security No.10 Strengthen the Green Economy Green Values Increasing Consumption of Fossil Energy GREEN ENERGY CONCEPT: 1. 2. 3. The effort of new and renewable energy development, and Efficient Energy Utilization Green Energy Efficient energy utilization Renewable energy use Use Clean Energy Technologies for fossil and non-fossil energy Green Industry Green Transportation *) United Nations Framework Convention on Climate Change Energy Security, Social Welfare, Sustainable Development ENERGI DAN SUM © DGNREEC 2012 9#10Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources NATIONAL COMMITMENT TO REDUCE GREENHOUSE GASSES President Commitment in G-20 Pittsburgh and COP15 to reduce greenhouse gasses emission by 2020 Domestic efforts 26% (767 million Ton) 41% Domestic efforts and international support Forestry, Peat, Agriculture Energy Sector Wastes Industry and Transport 680 million Ton 30 milion Ton 48 million Ton 9 Juta Ton Through new renewable energy development and energy conservation implementation in all sector GI DAN SUN © DGNREEC 2012 10#11III. NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION (NREEC) DEVELOPMENT#12Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources AGENDA ON NEW RENEWABLE ENERGY AND ENERGY CONSERVATION (NREEC) DEVELOPMENT MAIN AGENDA 1. Harmonizing new renewable energy and energy conservation regulations 2. Updating Master Plans on Energy Diversification and Energy Conservation 3. Improvement of energy efficiency 4. Development of geothermal 5. Development of bioenergy 6. Development of other new renewable energy 7. Clean Energy Initiative (REFF-Burn) 8. Increasing local content and supporting industry 9. Energy Self-Sufficient Village 10. Role model of clean manufacture, clean industrial park, low carbon city, and provinces SUPPORTING AGENDA 1. Enhancing research and development 2. Enhancing training and education ENERGI DAN SUM © DGNREEC 2012 12#13Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources 1. GOVERNMENT POLICIES ON RENEWABLE ENERGY DEVELOPMENT Ministry of Energy And Mineral Resources Regulation Number 32 Year 2008 Concerning On Provision, Utilization, and Procedures of Commerce Biofuels (Biofuel) As Other Fuel. (Biofuels Mandatory); 2. Ministry of Finance Regulation No. 21/PMK.011/2010 Concerning on Tax And Custom Facilities For Renewable Energy Utilization; 3. 4. Ministry Of Finance Regulation Number 130/PMK.011/2011 Concerning on Provision of Exemption Facilities or Reduction of Income Tax. Ministry of Energy and Mineral Resources Regulation Number 04 Year 2012 Electricity Power Purchased Price from Renewable Generations (small and medium scale) and Excess Power 5. Ministrial Regulation of MEMR No. 22/2012 on geothermal price structure. ENERGI DAN SUM © DGNREEC 2012 13#14A. SOLAR ENERGY#15Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources 1. 2. 3. PROGRAM OF SOLAR ENERGY (INCLUDING WIND AND OCEAN ENERGY) Rural Electricity: increasing rural community accessibility to electricity; targeting electricity demand in remote area Urban Electricity: targeting middle and high class household, real estate, office and commercial buildings, hotel and resort, industry and others Electricity for Frontier Island: targeting community in the island located along the country border line ENERGI DAN SUME © DGNREEC 2012#16# ROAD MAP OF SOLAR PV BY PT. PLN (PERSERO) 2011 2016 2021 2010 2015 2020 2025 Pilot Project Solar Power in 5 location (Tourism Islands): - Bunaken island - Derawan island - Trawangan island - Naira island - Raja Ampat island - Acceleration ratio electrification until above 60% Reduce Fuel. Solar PV Programme: • • 100 Location (2011): 20MW 900 Location (2012- 2015): 220 MW. Feed In Tariff Policy Extend Existing capacity Solar Power: 380 MW - Commercial Scale development Solar Power: 500 MW.#17# MAP OF SOLAR PV PROGRAM FOR 1000 ISLANDS Kep. Riau Location : 151 Islands Total Cap60.100 kWp Location NAD : 44 Islands Total Cap 7.420 kWp Kalimantan Sel & Tengah Location Total Cap : 96 Islands 48.690 kWp Sulawesi Utara, Tengah Sumatera Utara Location : 27 Islands Kalimantan Barat Kalimantan Timur Total Cap 6.100 kWp Location Total Cap 63 Islands 40.100 kWp Location Total Cap :30 Islands & Gorontalo Location 24.950 kWp Total Cap : 39 Islands 30.900 kWp Sumatera Barat Location : 42 Islands Total Cap: 7.750 kWp Bangka Belitung Location : 16 Islands Total Cap 35.050 kWp Jawa Barat & Banten Location 3 Islands Total Cap 1.100 kWp Maluku & Maluku Utara Location Total Cap : 29 Islands 33.500 kWp Papua & Papua Barat Location : 66 Islands Total Cap: 44.925 kWp Sulawesi Selatan, Tenggara Location & Barat : 17 Islands Total Cap 29.700 kWp Sumsel, Jambi & Bengkulu Location Total Cap : 6 Islands 3.400 kWp Jawa Tengah & Yogyakarta Location : 5 Islands Total Cap 700 kWp Location Bali 1 Islands Total Cap 300 kWp Location NTB 15 Islands Total Cap: 44.540 kWp Lampung Location 18 Islands Total Cap 2.550 kWp Jawa Timur Location 12 Islands Total Cap 4.300 kWp Location NTT 99 Islands Total Cap: 45.200 kWp#18# MAP OF PV & WIND POWER PROJECTS OF PLN INDONESIA -Average Solar Irradiation between 4 - 6 kW/m². Most higher radiation is in Eastern of Indonesia - Estimating, the radiation can generate energy about 3.7 kWh/day. RIAU&KEPRI Location: TAREMPA ANAMBAS Island Capacity: 200 kWp Status : Operation EAST KALIMANTAN Location: SEBATIK SEBATIK Island Capacity: 300 kWp Status : Operation EAST KALIMANTAN Location: DERAWAN Island Capacity: 170 kWp + Battery Status : Operation on March 2011 NORTH SULAWESI Location: MIANGAS Island Capacity: 30 kWp Status : Operation on Oct 2011 RIAU&KEPRI Location: MORO. KARIMUN Island Capacity: 200 kWp Status : Operation EAST KALIMANTAN Location: BUNYU BUNYU Island Capacity 150 kWp Status : Construction NORTH MALUKU Location: MOROTAI Island Capacity: 600 kWp Status: Operation on April 2012 NORTH SULAWESI Location: MARAMPIT Island Capacity: 50 kWp Status : Final Construction WEST SUMATERA Location: TUA PEJAT SIPORA Island Capacity: 150 kWp Status : Operation : Wind Turbine Projects : Photovoltaic Projects WEST SUMATERA Location: SIMALEPET WEST NUSA TENGGARA SOUTH SULAWESI SIPORA Island Capacity: 40 kWp Status Location GILI TRAWANGAN Capacity: 200 kWp Status Location: TOMIA Island Capacity: 75 kWp Status : Operation on Feb 2011 : Operation on May 2011 : Operation BALI Location: NUSA PENIDA Capacity 3x85 kW Status Existing owned by PLN Contact us PT PLN (Persero), JI. Trunojoyo Blok M I/135, Jakarta 12160 Phone: 62-21-7261875 Fac: 62-21-7221330 NORTH SULAWESI Location: BUNAKEN Island Capacity: 335 kWp + Battery Status : Operation on Feb. 2011 PAPUA Location: SAONEK RAJA AMPAT Islands Capacity: 40 kWp Status : Operation on Dec. 2010 MALUKU Location: BANDA NAIRA Capacity: 100 kWp Status : Operation on Dec. 2010 EAST NUSATENGGARA Location: LEMBATA Capacity: 200 kWp Status : Operation on Sept 2011#19# MAP OF SOLAR ENERGY FOR 100 ISLANDS #100% SOLAR ENERGY FOR 100 ISLANDS PT PLN (Persero) Mohon Doa Restu Kami akan melistriki 100 pulau terpencil dengan 100% Energi Surya dan harus selesai pada akhir tahun 2011 ini juga! PAPUA Salah Satu Program Unggulan PLN 2011 MALIKU 1. Madpins 39. Km Tow wher 79. Kesing 2. Koppe 34 77. Tone 3. Now V. Sabotag PAPUA BAKAY 1. Manisa's 6. Babe T. Sanoke 1. Kokur 5. Atays 13. Huppa 11. Mirand 13. Nibsbarak 14. Ovi 15. Dr.E. 31.5M MALIMUUTAR 4. (D) 43. Mesi (Bos bod 41, Pri 4. Takes (bon 47 T Me SULOFESI TENGGARA 51. Kapera 12. Katoena SULAWESI UTARA 83. Meads Tes 51. Nak Ng 85. Nai 52. Ka 6. Malag 51. M ST. Tikm 15. Kampung Prince 17. Korgung Suport 15. Kampung Yanbour 18. Kompy 20. Downi NUSA TENGGARATIMER 54. Marking 95. P.M 3. Nale ST. R St. Mich WV. Dujokım 90. Kanning 91. Margen Mt. Maung's 21. Sarki 22. Kew 21. Magome 99. Lamalor 10. S ST. PANAMA 14 S MALUKU $2. Nouthway 25. Takogs (P. Ke 9.2 25 Nath Tig 1. Nesoscle M. Nwww 8. PM 27. K 25. Media Cen 24. Tow (La) 33 Auka (M 31. Pai 12 Kek Bev h 527) JAK 15. LaidServan Js. Mos Man 17. Labor (Son 35. Rowing (h) 54, Komoda NUSA TENGGARARARAY 65. Ck Treibti 2358 ST. CHEAP Maringki 9. Making 3) Schook 71. Lakan Hijik 72. May 75. Sewing SULOVESETENGAH 97. Kep Tegian 98. Kep Tegies "Key Tegies 161. Smog KALIMANTAN SELATAN 102 Map 164K 165 Kama 16 Tong Nytar 2008 19 19#20B. GEOTHERMAL#21Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources GEOTHERMAL POTENTIAL MAP 95 BT 9730 100-30 C 110 11230 Brunei Darussalam South China Sea Malaysia Sumatera 117-30 12230 Sulawesi Sea Natuna Sea Malaysia Singapore Kimata Strat Kalimantan Sulawesi 215 213 223 225 Java Sea 139 132 134 140 144 Java Ball 164 Flores Sea 127916 13230 135 imor Leste 181] Banda Sea מילנו 140 MINISTRY OF ENERGY AND MINERAL RESOURCES Minister: Dr. Darwin Zahedy Saleh Pacific Ocean Papua BIDEKAP No. Island Number of Locations Potency (MVV) Install Capacity 115 117°37 12230 129 12730 130 13230 13730 140 BT (MVV) 1 Sumatera 86 13,516 2 Java 71 10,092 12 1,117 Source: Geological Survey, MEMR(2010) 3 Bali 5 296 Note: 4 Nusa Tenggara 22 1,471 5 Kalimantan 8 6 Sulawesi 55 115 2,519 Preliminary Survey 60 7 Maluku 8 Papua 26 3 954 75 Detail Survey Total 276 29,038 1,189 Ready to Developad Already Developed © DGNREEC 2012#22# 0 5 1 2 6 7 4 MAP OF GEOTHERMAL DEVELOPMENT 3 1 1 2 3 11 10 2 17 18 37 19 5 20 9 8 21 24 1 3 00000 25 25 12 2 1 5 22 6 1 5 14 23 3 4 16 7 6 8 4 28 3 5 6 CO 29 27 26 30 30 8 READY FOR EXPLORATION OR ON BIDDING STAGE 1. JABOI (10 MW) 2. SEULAWAH AGAM (55 MW) 3. S.MERAPI (240 MW) 4. SARULLA II (110 MW) 5. PUSUK BUKIT (110 mw) 6. SIPOHOLON (55 MW) 7. BONJOL(165 MW) 8. S. SEKINCAU (220 MW) 9. WAY RATAI (55 MW) 10.DANAU RANAU (110 MW) 11.C. CISUKARAME (50 MW) 12.RAWA DANO (110 MW) 13.G.ENDUT (55 MW) 14.W. WINDU 3&4 (220 MW) 15.T. PERAHU (170 MW) 16. TAMPOMAS (45 MW) 17. GUCI (55 MW) 18. BATU RADEN (220 MW) 19. NGEBEL/WILIS (165 MW) 20. UNGARAN (55 MW) 21. UMBUL TELOMOYO (55 MW) 22. IYANG ARGOPURO (55 MW) 23. IJEN (110 MW) 24. BEDUGUL (10 MW) 25. SEMBALUN (20 MW) 26. HU'U (20 MW) 27. SOKORIA (15 MW) 28. MATALOKO (15 MW) 29. ATADEI (5 MW) 30. JAILOLO (10 MW) EXPLORATION STAGE 1. MUARA LABOH (220 MW) 2. RANTAU DADAP (220 MW) 3. RAJABASA (220 MW) 4. SUNGAI PENUH (110 MW) 5. HULULAIS (110 MW) 6. ULUMBU (5 MW) 7. KOTA MOBAGU (80 MW) 8. TULEHU (20 MW) READY FOR EXPLOITATION 1. SARULLA I (330 MW) 2. LUMUT BALAI (220 MW) 3. ULUBELU 3&4 (110 MW) 4. KAMOJANG 5&6 (90 MW) 5. CIBUNI (10 MW) 6. KARAHA BODAS (140 MW)) 7. LAHENDONG 5&6 (40 MW) CONSTRUCTION STAGE (117,5 MW) 1. ULUBELU 1&2 (110 MW) 2. PATUHA (120 MW) 3. ULUMBU (7,5 MW) PRODUCTION STAGE (1201 MW) 1. KAMOJANG (200 MW) 2. WAYANG WINDU (220 MW) 3. DIENG (60 MW) 4. ULUMBU (2,5 MW) 5. MATALOKO (1,5 MW) 6. LAHENDONG (80 MW) Contact us PT PLN (Persero), JI. Trunojoyo Blok M I/135, Jakarta 12160 Phone: 62-21-7261875 Fac: 62-21-7221330#23Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources Road Map of Geothermal Development 2006 - 2025 (Based ion Presidential Decree No. 5/2006 National Energy Policy) EAGI D GIDAN S 2006 2008 2012 2016 2020 2025 852 MW (Production) 2000 MW 3442 MW 4600 MW 6000 MW 9500 MW (Target) 1148 MW Existing GWA 1442 MW Existing GWA 1158 MW Existing GWA + New GWA 1400 MW New GWA 3500 MW New GWA 1189 MW Current Condition 5156 MW Scenario Crash Program PHase II (3967 MW) 12000 MW Vision 25/25 EBTKE ENERGI DAN SU23 © DGNREEC 2012 FUMBER DAYA M#24Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources GOVERNMENT POLICIES TO SCALE UP GEOTHERMAL DEVELOPMENT IN INDONESIA The Government of Indonesia (GOI) intends to accelerate and speed up the development of geothermal. 1. Presidential Regulation No. 04/2010 jo Ministerial Regulation No. 15/2010 (2nd Stage of 10,000 MW Crash Program) in order to speed up the development of geothermal power to the amount of 3,967 MW by the year 2014 which will require a total of US$ 12 Billions. 2. Pricing Policy • Ministrial Regulation of MEMR No. 22/2012 on geothermal price structure. Fiscal incentives for geothermal development (based on Government Regulation No. 62/2008 jo No. 1/2007; MR of MoF No. 177/PMK.011/2007; and MR of MoF No. 22/PMK.011/2011). 3. Access to Potential Geothermal Resources for Investors. The GoI establishes new GWAS and widely open opportunities for investors to participate in the geothermal business through GWAS tendering mechanism 4. Capacity Building. To support 2nd crash program of 10.000 MW, it will require at least 800.000 workers with particular skill and knowledge on geothermal. DAN SUME © DGNREEC 2012#25C. BIOENERGY#26Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources POTENTIAL BIOENERGY RESOURCE FUEL · • CPO production 24 million ton for food, export and fuel Production of molasses 1,5 million ton, cassava 14 million ton BIOGAS (HOUSEHOLD) • • The potential for biogas mostly from manure and other organic materials; ⚫ In 2009, Indonesia has a number of livestock quite large, including 13 million. dairy cows and cattles, as well as approximately 15.6 million goats; the potential equivalent of 1 million units of biogas digester. POWER GENERATION Huge potential of biomass from agricultural waste, plantations, and urban wastes for power generation ENERGI DAN SUM © DGNREEC 2012#27Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources BIOFUEL USAGE MANDATORY Ministry of Energy and Mineral Resources Regulation Number 32 Year 2008 BIOETHANOL (Minimum) Sector 2008 2009 2010 2015 2020 2025 Transportation, 3% 1% 3% 5% 10% 15% PSO (Existing) Transportation, 5% 5% 7% 10% 12% 15% Non PSO (Existing) Industry 5% 7% 10% 12% 15% BIODIESEL (Minimum) Sector 2008 2009 2010 2015 2020 2025 Transportation, 1% 1% 2.5% 5% 10% 20% PSO (Existing) Transportation, 1% 3% 7% 10% 20% Non PSO Industry 2.5% 2.5% 5% 10% 15% 20% Electricity 0.1% 0.25% 1% 10% 15% 20% DAN SUME © DGNREEC 2012 27#28Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources Implementation of Bioenergy in Indonesia 1. Development of biofuel as fossil fuel substitution: - - There are 23 biodisel produser and 7 bioethanol producer that have commercial business license to operate in Indonesia (status on 2010). - Installed capacity of biodiesel is 4,506,629 KL/year and installed capacity. of bioethanol is 286,686 KL/year. 2. Development and utilization of "Mitanol” (kerosene from bioethanol) as kerosene substitution for household 3. Development of biogas digester for cooking in household sector through BIRU (Biogas Rumah) Programme as Indonesia Domestic Biogas Programme. This programme implemented by HIVOS, as NGO from Netherlands and funded by Netherlands Governtment. Status until August 31st the total biogas digester that have been built is 3,707 unit from total target is 8,000 unit. 4. Development of power plant based on biomass with the total installed capacity is 1,618.40 MW. Indonesia as agricultural country has a large potency of biomass for electricity generation. RGI DAN SUM © DGNREEC 2012 28#29Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources ELECTRICITY PRICE (FEED-IN TARIFF) BASED ON ENERGY BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE *) No. Energy Capacity Electricity Tariff Note 1. Biomass until 10 MW Rp. 975,-/kWh X F 2. Biogas until 10 MW Rp. 975,-/kWh X F Non Municipal Solid Waste 3. Municipal Solid Waste until 10 MW Rp. 1050,-/kWh Zero waste **) 4. Municipal Solid Waste unti 10 MW Rp. 850,-/kWh - F as an incentive factor based on the region where the power plant installed, as follows: Jawa, Bali, and Sumatera region Kalimantan, Sulawesi, NTB and NTT region Maluku and Papua region ■ Feed in Tariff will be issued in Minister of ESDM decree. Note : *) Connected to medium voltage system : F = 1 : F = 1,2 : F = 1,3 **) Based on Act No. 18 Year 2008 concerning to Waste Management. - Landfill **) ENERGI DAN SUM © DGNREEC 2012 22#30Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources MINISTRY OF FINANCE REGULATION NUMBER 130/PMK.011/2011 CONCERNING ON PROVISION OF EXEMPTION FACILITIES OR REDUCTION OF INCOME TAX CORPORATE TAXPAYERS can get facilities: EXEMPTION OR REDUCTION OF CORPORATE INCOME TAX EXEMPTION OF CORPORATE INCOME TAX 5-10 tax year After the end of Corporate Income Tax exemption facility REDUCTION OF CORPORATE INCOME TAX 50% of Income Tax Payable for 2 tax yearh Minister of Finance may provide facilities Corporate Income Tax exemption or reduction for a period EXCEED predetermined period of time *) The facility can be utilized if: 1. Had executed the entire capital investment 2. Has been produced commercially • • • . PIONEER INDUSTRIES Having a new investment plan min. IDR 1 trillion • Placing funds in the Indonesian banking min 10% from the total capital investment plan Existed as ENTITY INDONESIA Industry of Basic Metals Manufacutre Industry of Oil Refining and / or Basic Organic Chemicals sourced from Oil and Natural Gas Industry of Machinery INDUSTRY OF RENEWABLE RESOURCES FIELD Industry of Communications Equipment PIONEER INDUSTRIES ENERGI DAN SUM © DGNREEC 2012 30#31D. ENERGY CONSERVATION#32Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources POTENTIAL AND TARGET FOR ENERGY CONSERVATION POTENTIAL OF TARGET OF ENERGY CONSERVATION SECTOR ENERGY CONSERVATION SHARE OF ENERGY FINAL CONSUMPTION SECTORAL TOTAL TARGET OF ENERGY CONSERVATION (2009) (2025) (2025) Industry 10-30% 17.00% 41% 6.9% Commercial 10-30% 15.00% 5% 0.7% Transportation 15-35% 20.00% 37% 7.4% Household 15-30% 15.00% 13% 2.0% Others (ACM) 25% 0.00% 4% 0.0% TOTAL 100% 17.0% TARGET ACCUMULATION FOR ENERGY CONSERVATION SECTOR 2011 2012 2013 2014 2015 (2016-20) (2021-25) IndustriY 0.01% 1.25% 2.90% 3.50% 4.00% 9.50% 17.00% Commercial 0.00% 0.50% 2.00% 4.60% 7.40% 13.80% 15.00% Transportation 1.50% 4.10% 6.00% 6.80% 9.30% 15.90% 20.00% Household 1.80% 4.00% 5.60% 7.30% 9.20% 14.00% 15.00% DAN SUME © DGNREEC 2012#33Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources REGULATORY FRAMEWORK 2011 2012 2007 2009 Energy Act No 2006 30/2007 National Energy Policy Presidential Regulation No. 5/2006 2010 1. Ministerial Regulation Energy Conservation Govt Reg No 70/2009 (MEMR) No. 13/2010 on Competency Standards for 1. Presidential Instruction No. 13/2011 On Energy and Water Saving 2. Ministerial Regulation Energy Manager (MEMR) No. in Industrial 2. Ministerial Regulation (MEMR) No.14/2010 on Competency Standards for Energy Manager in Building 6/2011 on Energy Labeling for CFL 3. Presidential Regulation No. 61/2011 on National Action Plan on GHG Emission Reduction Ministerial Regulation (MEMR): No. 12/2012 on Fuel Consumption in Transportation No. 13/2012 on Electricity Consumption in Government Building No. 14/2012 on Management Energy ENERGI DAN SUM © DGNREEC 2012#34Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources PRESIDENTIAL INSTRUCTION NO. 13/2011 ON ENERGY AND WATER SAVING Instruction to the leaders of Government Institutions both at central and local governments to measures water and energy saving. Establish a National Team of Water and Energy Savings. Target: ✓ 20% Electrical saving ✓ 10% Subsidized fuel consumption saving ✓ 10% Water saving ENERGI DAN SUME © DGNREEC 2012#35Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources • • • LABELLING FOR CFL Objective introducing energy saving level as a guidance for consumer and to promote energy efficiency Testing procedure: SNI IEC 60969: 2009 Label for energy saving marks: SNI 04-6958-2003 Ministerial Regulation (MEMR) No. 6/2011 on Energy Labeling for CFL was issued as a legal basis CFL as a pioneer for Labeling Program Power (Watt) Efication Value(Lumen/Watt) 1 Star 2 Stars 3 Stars 4 Stars * ☆ ✰✰✰✰ 5-9 45-49 >49-52 >52 - 55 > 55 10 – 15 46-51 > 51-54 > 54-57 > 57 16-25 47-53 > 53-56 > 56-59 > 59 ≥ 26 48-55 > 55-58 > 58-61 > 61 90 lumen/wat Tingkat Hemat Energi SEMAKIN BANYAK BINTANG SEMAKIN HEMAT MODEL PRODUK NO. REG © DGNREEC 2012#36Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources ENERGY CONSERVATION PROGRAM ...(1) PROGRAM 1. Creating Policy and Regulation 2. Public Awareness Improvement 3. Education and Training DESCRIPTION ■ Drafting Ministerial Regulation (MEMR) on Preparation Program Procedures and Reporting of Implementation on Energy Conservation Drafting Ministerial Decree (MEMR) on The Master Plan for Energy Conservation (RIKEN) Drafting for Guideline of Energy Efficiency for Building ■ Conduct seminar/workshop and public advertisement through printed and electronics media, and dissemination of brochure on energy efficiency Conduct National Energy Awards for building and industrial sector and participating in ASEAN Energy Awards Training on energy efficiency and conservation by Centre for Training and Education - MEMR ■ Participate in the training on energy conservation in abroad conducted by JICA, ACE, etc © DGNREEC 2012#37Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources ENERGY CONSERVATION PROGRAM ...(2) PROGRAM 4. Partnership Program on Energy Conservation 5. Energy Manager & Auditor 6. Labeling 7. Monitoring and Evaluation DESCRIPTION Providing free of charge energy audit for buildings an industries During 2003-2010, energy audit already done for 452 industries & buildings, and 195 industries & building in 2011 ■ Preparing the Certification Institution for Energy Manager and Auditor Promoting energy efficiency labeling as a guidance for consumer Energy efficiency lamp (CFL) is pioneer for labeling system Preparing technical guidance for CFL labeling Monitoring to large energy consumer > 6000 TOE Monitoring to energy saving target for Government Institutions DAN SUME © DGNREEC 2012#38Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources ENERGY CONSERVATION PROGRAM ...(3) PROGRAM DESCRIPTION 8. International Cooperation ■ Bilateral Indonesia -Denmark (DANIDA) Cooperation with 3 (three) main outputs: Energy Efficiency and Conservation Clearing House. ✓ Energy Efficient: New large building are efficient ✓ Auditor Certification and review of incentive scheme Bilateral Indonesia-Netherland (NL Agency) Energy efficiency improvement in industrial sector through implementation of Energy Potential Scan (EPS) Bilateral Indonesia-Japan (JICA & NEDO): Study on tariff mechanism and load management at peak load ✓ Labeling for energy equipment ✓ Funding mechanism for energy efficiency ✓ Methodology and emission factor baseline for energy efficient equipment ■ International Copper Association: Conducting Minimum Energy Performance Standards (MEPS) for Electric Motor and Air-Conditioning USAID © DGNREEC 2012#39IV. CHALLENGES & OPPORTUNITIES#40Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources • . • • • CHALLENGES FOR NREEC DEVELOPMENT High initial investment cost Production cost of NRE is higher than production cost of conventional energy that caused NRE cannot compete with conventional energy; Lack of incentives and smart funding mechanisms. Energy subsidy removal Formulating energy price based on its economic value • Quantifying externality costs ENERGI DAN SUME © DGNREEC 2012#41Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources • • • • • OPPORTUNITIES FOR NREEC DEVELOPMENT High growth rate of energy; Huge potential of NRE and can be found throughout Indonesia; Fossil energy reserves is decreased; Oil price is very volatile and tends to increase; NRE is clean energy; Utilization of clean energy to be a world trend in the framework of climate change mitigation; Law Number 30 Year 2007 (concerning Energy) mandated: - - Priority of utilization of NRE, Government provide incentives for NRE development. ENERGI DAN SUM © DGNREEC 2012 41#42Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources . . e . . FINANCING INSTRUMENTS Government and Local Government are obliged to develop new & renewable energy The cost of this mitigation is pursued from own funds (National Budget, budget business entity (Anggaran Badan Usaha)) Scheme of funding from the Clean Development Mechanism (CDM) - excluded Donor Assistance funding to the partnership program Scheme of funding from the Public-Private partnership Scheme of funding from APLN (PLN Budget), SLA (Subsidiary Loan Agreement), Bonds, Loans and Revenue The funds from the non-renewable energy for new and renewable energy research (Law 30/2007 Article 30 paragraph 3) ENERGI DAN SUM © DGNREEC 2012 42#43Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources INVESTMENT OPPORTUNITIES (1) 1. SECOND PHASE 10,000 MW ACCELERATED PROGRAM: 2. 3. 4. to accelerate the construction of power generation with focus on renewable energy resources (geothermal 3,967 MW and hydro 1,174 MW). • PROGRAM ON RENEWABLE ELECTRICITY FROM LOCAL AVAILABLE RESOURCES: Small/medium scale electricity generation from renewable energy resources such as biomass, microhydro, wind power plant, and geothermal as well as smart grid projects Feed-in-tariff for the purchase of electricity from new and renewable energy generation. • BIOFUEL INDUSTRY AS PART OF MANDATORY FOR USING BIOFUELS IN INDUSTRY, TRANSPORTATION, AND POWER PLANT SECTOR (MINISTER REGULATION NUMBER 32/2008) ENERGY CONSERVATION PROGRAM AS A PART OF GOVERNMENT'S COMMITMENT TO REDUCE NATIONAL EMISSION OF GREENHOUSE GASSES ENERGI DAN SUM © DGNREEC 2012#44Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources INVESTMENT OPPORTUNITIES (2) 5. MANUFACTURE, SUPPORT AND MAINTENANCE INDUSTRIES FOR RENEWABLE ENERGY PROJECTS industries which are focusing on solar PV panel, blade for wind, small and efficient generator, cables, electronic components as well as support and maintenance for existing projects 6. MANUFACTURE, SUPPORT AND MAINTENANCE INDUSTRIES FOR ENERGY EFFICIENCY PROGRAMS Low energy lighting, building materials, HVAC, etc as well as support and maintenance for existing projects 7. CAPACITY BUILDING PROGRAM ENERGI DAN SUME © DGNREEC 2012#45NO Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources NATIONAL ACTION PLAN ON GHG EMISSION REDUCTION (Ministry of Energy and Mineral Resources) ACTION PLAN TIME PERIOD 2010-2020 INDICATION OF GHG EMISSION REDUCTION (Million Ton CO2e) 10.16 1 Implementation of mandatory energy management for large energy consumer 2 Implementation of partnership program on energy conservation 2010-2020 3 Efficiency improvement of home appliances 2010-2020 4 Supply and management of new renewable energy and energy conservation 2010-2014 2015-2020 2.1 10.02 1.27 (MHP: 0.21 MCHP: 0.85 SOLAR: 0.11 WIND: 0.02 Biomassa PP: 0.00032 ESSV: 0.06) 3.13 (MHP: 0.40 MCHP: 2.40 SOLAR: 0.18 WIND: 0.04 Biomassa PP: 0.01 ESSV: 0.12) 5 Biogas utilization 2010-2020 00 6 Natural gas usage for public transportation in urban 2010-2020 0.13 3.07 area 7 Increase of number of household installed with natural gas through pipeline 2010-2014 0.15 8 Construction of Mini plant Refinery for Liquid 2010-2014 0.03 Petroleum Gas (LPG) 9 Post mining reclamation 2010-2020 2.73 TOTAL 32.8 © DGNREEC 2012#46V. CONCLUSION#47Ministry of Energy and Mineral Resources Republic of Indonesia Directorate General of New, Renewable Energy, and Mineral Resources CONCLUSION It's time to develop new & renewable energy along with effort to improve energy efficiency, towards a green energy. The GHGs mitigation in energy sector poses an opportunity as well as challenge to implement clean energy that focuses on new renewable energy development, implementing efficiency energy and clean energy technology. The clean energy initiative is an integrated effort of the energy sector to fulfill the national security energy supply and mitigate the global GHGs emission that must be equipped with appropriate policy and regulatory framework, such as incentive and disincentive to develop energy efficiency (EE) and renewable energy (RE) projects. ENERGI DAN SUM © DGNREEC 2012 47#48THANK YOU Go Green Indonesia! green energy, future energy MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Telp: 021-52904235; 5250575; Faks: 021-25529106; 25529212 www.ebtke.esdm.go.id 48 48