Indonesia energy efficiency report

Transcription

1 Indonesia energy efficiency report Latest update: March 211 Objectives: - slower energy consumption growth than GDP growth by 22 - industrial energy intensity reduction target of about 1% per year until 22 OVERVIEW 2- (%/year) Primary intensity (EU=1)¹ % + CO 2 intensity (EU=1) % -- CO 2 emissions per capita (in tco₂/cap) % -- POWER GENERATION 2- (%/year) Efficiency of thermal power plants (in %) % -- Rate of electricity T&D losses (in %) % + CO 2 emissions per kwh generated (in gco₂/kwh) % -- INDUSTRY 2- (%/year) Energy intensity (EU=1) % -- Unit consumption of steel (in toe/t) % Among the best performing countries + Above the EU average 1 - Below the EU average 1 -- Among the worst performing countries 1 The European Union, as the best performing region, is used as the benchmark. 1

2 Mtoe 1. Overview 1.1. Policies: slower energy consumption growth than GDP growth by 22 The goal of the National Energy Conservation Master Plan (2), entitled RIKEN, is to achieve Indonesia s energy saving potential through energy efficiency and conservation (EE&C) measures, and so to avoid wasteful energy use in Indonesia. RIKEN identified the following sectorial energy saving potentials: 1-3 percent in industry, 2 percent in commercial buildings for electricity, and 1-3 percent in the residential sector. The National Energy Policy (26) states that Indonesia s goal is to achieve an energy elasticity of less than 1 in 22 (the energy elasticity is the rate of change of total primary energy supply over the rate of change of GDP). The Clean Technology Fund (CTF) aims to accelerate the country s initiatives to promote energy efficiency and renewable energy, and to help reach the objective of increasing electricity access from 6 percent of the population to 9 percent by Energy consumption trends: steady increase since 199 Total energy consumption per capita remains low. In it reached.9 toe, compared with the world average of 1.9 toe and around 1.3 toe for non-oecd countries. With the exception of, when Indonesia was hit by the Asian financial crisis, primary energy consumption has been increasing steadily and rapidly (3.8 percent/year since 199). That rapid pace was not affected by the global economic downturn in 29, when consumption grew by.3 percent. Figure 1: Energy consumption trends by sector 2 Other Industry Power generation The share of industry in total energy consumption is almost stable, at around 2 percent, whereas the share of the power sector has increased threefold since 199, from 6 percent to about 2 percent. That high increase is the result of the large spread of electricity in energy consumption. Electricity consumption per capita is very low and in reached 632 kwh, compared with a world average of 2,7 kwh. It has grown rapidly since 199 (over 7 percent/year). 2

3 %/year TWh The share of electricity in energy consumption is low and is developing slowly: it reached 9 percent in, up from 3 percent in 199. Electricity consumption has increased by more than 8. percent/year since 199, ie, more rapidly than total energy consumption. That large increase is explained by the use of electricity in all sectors and the increase in the country's electrification rate. At the end of the eighties, only 2 percent of households and one fifth of villages were electrified, compared with 6 percent of households and 8 percent of villages at present. The current plan is to continue the electrification process, with micro-hydroelectricity and decentralized production. The objective is to reach an electrification rate of 9 percent by 22. The share of industry in electricity consumption is decreasing, from 1 percent in 199 to 43 percent in 2, and in accounted for 34 percent of the total. Figure 2: Electricity consumption trends by sector Industry Others Energy efficiency trends: slow decrease in primary energy intensity Total energy consumption per unit of GDP (primary energy intensity), measured at purchasing power parity, is 16 percent higher than the world average; it has decreased by.9 percent/year since 199. This improvement has not resulted in improvements in the industrial or power generation sectors. Figure 3: Energy intensity trends 1.% %.% -.% -1.% -1.% -2.% -2.% Total Power generation Industry 3

4 GW 2. Power generation: no improvement The efficiency of the power sector tends to fluctuate and has decreased slightly since 199. It stood at 37 percent in, compared with 4 percent in 199. The reduction of the share of hydroelectricity and the development of coal power plants explain the deterioration of that ratio. In thermal power plants had an efficiency rate of 34 percent; that rate has remained relatively stable since 199. The limited development of more efficient technologies, such as gas combined cycles and cogeneration, did not permit an increase in the ratio for thermal power generation. Figure 4: Efficiency of power generation and thermal power plants Figure : Thermal electricity capacity, by technology % Total power generation Thermal power plants 4 Steam 4 3 Gas turbines 3 Combined cycles The rate of transmission and distribution losses (T&D) in the Indonesian grid is 1 percent of the distributed volumes, ie, above the world average (9 percent). Those losses tend to fluctuate significantly and have decreased slightly since 2. Figure 6: Electric T&D losses %

5 Mtoe 3. Industry 3.1. Policies: energy intensity decrease of around 1 % per year until 22 Indonesia s goal under the National Energy Conservation Master Plan is to reduce energy intensity by around 1 percent/year, on average, until 22. Fiscal incentives (tax deductions and soft loans) together with other instruments such as training and educational programs as well as energy audits are used to implement that plan. Under the National Energy Policy, the aim is to substitute oil in the industrial sector with gas, coal and electricity. The policy is in line with the five-year economic and social development plans (REPELITA), which establish the country s economic, political and social objectives Energy consumption trends: sustained growth Industrial energy consumption has doubled since 199. The sector s energy consumption was affected by the global economic slowdown in 28, but in recovered its 26 level. Figure 7: Trends in industrial energy consumption The share of coal in industrial energy consumption is increasing steadily and reached about 3 percent in, compared with about 1 percent in 199. Oil was the dominant fuel, but its market share is decreasing (from 3 percent in 199 to 2 percent in ). The share of energy-intensive industries in the overall energy consumption of industry has increased slightly since 199. They accounted for 1 percent of the sector s energy consumption in 199 and 2 percent in 29. The share of the non-metallic minerals industry (cement, ceramics, etc.) has remained relatively stable since then. The market share of the chemical industry has decreased slightly since 199, whereas the share of the paper industry has increased significantly, rising from 1 percent in 199 to percent in 29. The share of energy in the steel industry has declined from 9 percent to 2 percent.

6 %/year 1% 9% 8% 7% 6% % 4% 3% 2% 1% % Figure 8: Energy consumption of industry, by source Biomass Heat Electricity Gas Oil Coal/Lignite 1% 9% 8% 7% 6% % 4% 3% 2% 1% % Figure 9: Energy consumption of industry, by branch Other Paper Non metallic minerals Chemical Steel 3.3. Energy intensity trends: no improvement achieved in industry Between 199 and 29 industrial energy intensity decreased by 1.4 percent/year. Since 2, it has been increasing at a rate of 1.1 percent/year. Between 199 and 29, the energy consumed per ton of steel produced decreased by 3. percent/year. Since 2, it has decreased at the even faster pace of 9 percent/year. Figure 1: Trends in the energy intensity of industrial branches 2% % -2% % -6% -8% -1% *Including construction and mining Total* Steel Chemical Cement Paper 6