ROLE OF NATIONAL ENERGI COUNCIL (NEC)

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1 ROLE OF NATIONAL ENERGI COUNCIL (NEC) To develop National Energy Policy (KEN ) Done N E C To establish National Energy Planning (RUEN) To stipulate measures to deal with energy crisis and emergency conditions To Ensure Energy Security to Support Sustainable National Development To supervise the implementation of cross sector energy policies 1

2 STRUCTURE of NEC Chairman : President Vice Chairman : Vice President Daily Chairperson : Minister of Energy and Mineral Resources MEMBERS Government Representatives 1. Minister of Finance 2. Minister of National Development Planning 3. Minister of Transportation 4. Minister of Industry 5. Minister of Agriculture 6. Minister of Research and Technology 7. Minister of Environment Stakeholders Representatives 1. Dr. Ir. Tumiran, M.Eng 2. Prof. Ir. Rinaldy Dalimi, M.Sc, Ph. 3. Ir. Abadi Poernomo Dipl. Geoth.En.Tech 4. Ir. Achdiat Atmawinata 5. Sonny Keraf, PhD 6. Prof.Dr.Ir. Syamsir Abduh 7. Ir. Dwi Hary Soeryadi, M.MT 8. Dr.Ir. Andang Bachtiar, MSc 2

3 ENERGY DEVELOPMENT PRIORITY Maximizing the use of renewable energy. Minimize the use of petroleum Op9mizing the u9liza9on of natural gas and new energy. Using coal as the balance of the na9onal energy supply. Consider nuclear energy as a last choice. 3

4 THE IMPORTANT ISSUES IN KEN 2050 (1) (The most) The New Paradigm : Energy is not an export commodity but as a driving force in the National Development. => The value of Energy Commodities, not only base on Rupiah per Barrel of oil or Rupiah per tonne of Coal, but it is the magnitude of the added value resulting from utilization of energy in development and industrial processes. Reducing fossil energy exsport gradually and set a deadline to halt exports. => The Government must seek alternative revenue from other commodities as a substitute for income from energy exports in State Budget (APBN). 4

5 THE IMPORTANT ISSUES IN KEN 2050 (2) (Renewable Energy) The implementation of the Feed in Tariff mechanism in determining the selling price of Renewable Energy (RE). The price assumption of RE in the area is equal to the fuel price in that area by excluded the cost of fuel subsidies. Improving the management of Geothermal Energy through the sharing of risks between the license holder electricity supply business and developers. Government regulate the renewable energy market, including a minimum quota of electricity and fuels derived from renewable energy. 5

6 THE IMPORTANT ISSUES IN KEN 2050 (3) ((Renewable Energy) Increasing the role of national banks in financing activities of oil and gas production nationwide, the development of renewable energy, and energysaving program. Central Government and local governments to provide incentives (fiscal and non-fiscal) for the development and utilization of renewable energy. Applying fossil energy depletion premium for renewable energy development and others. 6

7 THE IMPORTANT ISSUES IN KEN 2050 (6) (Reserves) Operational reserves Must be provided by a business entity and industry to ensure continuity of supply, regulated by Government. Energy buffer Reserves Provided by Government to ensure National Energy Security, beyond operational reserves, and it used only to overcome the energy crisis in emergency conditions. Strategic Reserves Managed and allocated by the Government to ensure the long term energy needs. 7

8 TREND OF ENERGY TECHNOLOGY TOWARD SOLAR ENERGY 8

9 Technological Developments Towards Solar Energy Dominant Fossil Energy Dominant Renewable Energy 9 9

10 10

11 Solar Home System 11

12 The Price of Solar Energy System 12

13 DEWAN ENERGI NASIONAL Solar house 25 square meters solar cell with 40% efficiency will Produce Electric Power = Wp If solar radiation is 6 hour s per day, the available Electric Power = W for 24 hours ( Today Solar Cell efficiency available in market is 20 %) 13

14 WORLD ENERGY PRICE RE Price Fossil Price P R I C E Electricity Price Solar Energy Dominant 2030 Renewable Energy Era 2050 Difficult Times For World s Energy Need incentive for Renewable Energy 14

15 THANK YOU 15

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