SMART, EFFICIENT AND SUSTAINABLE ENERGY SOLUTIONS IN INDONESIA KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES JUNE 2017

Transcription

1 SMART, EFFICIENT AND SUSTAINABLE ENERGY SOLUTIONS IN INDONESIA KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES JUNE TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

2 EXECUTIVE SUMMARY The demand for sustainable and innovative energy solutions in Indonesia is growing. Indonesia has set a target to increase total electricity capacity with 35GW by By 2025, the government is targeting to have 23% of the total energy mix using renewable resources. In addition, the government has committed to reduce greenhouse gas emissions by 29% until In line with the Swedish export strategy and key focus areas smart grids, energy efficiency and sustainable heating and cooling, this report outlines the potential for Swedish companies in three key areas: Smart grids. In order to achieve the targeted electrification ratio of 97% in 2019, rural areas throughout Indonesia require smart micro grid technologies and systems that can use various renewable energy resources. The same technologies also have a potential in in industrial estates. Energy efficiency. 70% of industrial energy consumption in Indonesia is concentrated to industries like pulp &paper, textile, cement, fertilizer, and steel. Technologies that can improve energy efficiency within these industries are highly needed. Plant Integration and Control systems are identified as the highest potential areas for industrial applications in Indonesia. There is also a high demand for centralized energy management systems to be implemented in commercial buildings. Sustainable heating and cooling. Industries in Indonesia use more than 90% of their energy to generate heat. Efficient boilers and furnaces can have a big impact on energy efficiency in Indonesia. Most of the heat generation technologies used in Indonesia are outdated, producing large amount of waste heat. Waste heat recovery technologies and solutions can vastly improve energy efficiency in many industries. 2 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

3 CONTENTS PREFACE... 4 Indonesia Sweden Cooperation... 4 Team Sweden Energy Thematic Areas... 4 METHODOLOGY... 5 KEY FOCUS AREA 1: SMART GRIDs... 6 Market Overview... 6 Policy and Targets... 9 Opportunities... 9 Challenges KEY FOCUS AREA 2: ENERGY EFFICIENCY Market Overview Policy and Targets Opportunities Challenges KEY FOCUS AREA 3: SUSTAINABLE HEATING AND COOLING Market Overview Policy and Targets Opportunities Challenges ANALYSIS OF KEY FOCUS AREAS SUB FOCUS AREA 1: SMART MICROGRIDS Investment Environment Renewable Energy Power Plant Development SUB FOCUS AREA 2: BUILDING POWER MANAGEMENT SYSTEM RELATED REGULATION INVESTMENT ENVIRONMENT Building Power Management System Market Development & Opportunities CONCLUSION APPENDICES Appendix 1: Key opportunity areas Appendix 2: Parameters for THE market assesment INTERVIEW LIST REFERENCES TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

4 PREFACE INDONESIA SWEDEN COOPERATION Since 2012, Sweden and Indonesia have been cooperating to transform Indonesian energy production to becoming sustainable. Under the INSISTS platform (Indonesian-Swedish Initiative for Sustainable Energy Solutions), several initiatives addressing sustainable energy have been established including research and development, capacity building, and policy dialogue on renewables and energy efficiency. There is also an active program with support from Team Sweden to support Swedish small and medium-sized enterprises (SMEs) within the energy sector to promote their solutions, and establish and grow their business in Indonesia. On 17 February 2017, a Memorandum of Understanding (MoU) between the Ministry of Energy and Mineral Resource of Indonesia and Ministry of Energy and Policy Coordination of Sweden was signed to strengthen the cooperation between both countries, with special focus on renewable energy and energy efficiency. TEAM SWEDEN ENERGY THEMATIC AREAS Team Sweden Energy has launched three strategic focus areas of energy export : Smart grids Energy efficiency Sustainable heating and cooling Smart Grids Solutions for supplying electricity in a way that enable power grids to work efficiently and sustainable. Smart grid is a very broad concept that includes anything from power electronics, new technologies in the transmission system, new products and services based on ICT, the knowledge of energy flows and operation and control possibilities with end-users. (Swedish Smart Grids) The Swedish Government has appointed a coordination council and national knowledge platform for smart grids. The work of the coordination council covers smart grid solutions throughout the value chain, from the connection of power stations to new end user services such as smart solutions for the home. Swedish smart grid companies are primarily operating within eight areas: Renewable and distributed generation integration Transmission enhancement applications Distribution grid management Wide area monitoring and control Advanced metering infrastructure Customer side systems Electric vehicle (EV) charging infrastructure Information and communication technology (ICT) integration Energy Efficiency Technologies within energy consumption (excluding heating and cooling) that can deliver the same output but using less energy; or deliver higher output with the same level of supplied energy. Energy efficiency is a way of managing and restraining the growth in energy consumption. Something is more energy efficient if it delivers more services with the same energy input, or the same services with less energy input. (International Energy Agency) A parameter for measuring energy efficiency is energy intensity, i.e. the amount of energy used per monetary unit of gross domestic product (GDP). Successful energy efficiency initiatives should reduce the energy intensity and energy demand itself. Energy efficiency improvements are mostly done for buildings, transportations, and the industrial sector. Energy efficiency services now constitute a sizeable, distinct market sector. In 2015, energy service companies (ESCOs), whose primary business model is delivering energy efficiency solutions, had a total turnover of USD 24 billion (International Energy Agency) 4 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

5 Sustainable Heating and Cooling Technologies that produce the same level of heating and/or cooling using less energy; or produce more heating or cooling using the same amount of energy. The rationale of including heating and cooling in the thematic areas is that Sweden has a very strong tradition of district energy solutions. More than half of the heating need in Sweden is supplied from district heating systems. Sweden also has substantial experiences in district cooling and Stockholm has one of the largest district cooling networks in Europe. Some of the most efficient heat networks use a combination of different fuel sources and technologies. These include: Biomass as a more sustainable and cost-effective alternative to fossil fuels Combined heat and power (CHP) Energy accumulation and storage Other technologies for sustainable heating and cooling include heat-pump technologies, which are also possible to be used in cooling mode, e.g. heat driven chillers. Desiccant cooling technologies and drying technologies, including industrial applications can also be classified as sustainable heating and cooling. METHODOLOGY In order to have a common terminology of Swedish and Indonesian perspective, the three key focus areas are defined and scoped based on the supply and demand of energy. Each chapter of the analysis covers the key focus areas from an end user perspective in an Indonesian context. End users include: Commercial, e.g. apartments, office buildings, hotels, malls, hospitals. Residential, e.g. landed houses and apartments. Industrial. The transportation sector is excluded from this analysis. The information gathered is based interviews with relevant stakeholders and on desktop research. Each key focus is analysed using the same structure: Overview of the current situation from an Indonesian perspective Current policies and Government s targets constituting the significant drivers of development for the key focus areas Business opportunities within the key focus areas Challenges of implementing new technology, which include inhibiting regulations, bureaucracy, and lack of available funding Sub key focus areas was also identified, assessed, and ranked based on a market attractiveness matrix analysis. Two of the sub focus areas were explored further in terms of their potential, investment environment, and development stages. Figure 1: Key Focus Areas Definition and Scope KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 5

6 KEY FOCUS AREA 1: SMART GRIDS MARKET OVERVIEW Indonesia is an archipelagic country with five main islands and in total more than seventeen thousand islands. There are currently two main electrical grids, the Java-Bali grid and the Sumatra grid. The rest of Indonesia is covered by approximately 500 clustered grids. The western part of Indonesia is more developed than the eastern part by any measurement. The gap is substantial in infrastructure development and specifically in electrification ratio. The western part (Java, Bali and Sumatera) has an electrification ratio of around 80-85% while the eastern part only achieves around 50-70% as can be seen in figure 3. The main stakeholder on the grid development and smart grid initiatives is PT. Perusahaan Listrik Negara (PLN), a state-owned national electricity company. PLN owns most of the power plants in Indonesia and is the appointed single supplier of electricity transmission and distribution in Indonesia. (PLN, 2016). consumption class (with consumption of less than 900KvA per month). The electricity value chain can be simplified to three components: Power plant Transmission & distribution Metering Power Plants Currently, Indonesia has a total of 53 GW power generation capacity of which around 70% is owned by PLN and the remaining 30% is owned by private companies (independent power producers or IPPs). Figure 2: Indonesia Power Plant Installed Capacity Energy Mix 2014 The Government has set a universal price of electricity from PLN to end users irrespective of the distance between end users and the power plant. Price differentiation or Government subsidy is only applicable to the lowest electricity user Figure 3: Indonesia Power Grid Source : Electricity Statistics, DG Electricity, Ministry of Energy and Mineral Resources data (2014) 6 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

7 Steam engine and diesel types are the most common power plants in Indonesia. Steam power plants contribute to more than 25 GW of capacity installed or close to 50% of total power plants installed. Diesel driven power plants are commonly used in rural area as the main source of electricity, and in urban areas as a back-up source. However, their contribution to the total power generated in Indonesia is only 12%. Within renewables, hydro (6,7% of total energy production), geothermal (4,4%) and wind and solar (0,43%) are considered the primary sources. However, the total capacity of renewable power plants only contributes to less than 12% of the total installed capacity. Transmission and Distribution Indonesia has approximately 45,000 km circuit (Kmc) transmission lines and 925,000 km circuit distribution lines spread throughout the islands. As a comparison, Thailand - a neighbouring country with a population of one fourth of Indonesia s, has a total of 33,000 km transmission lines and 732,000 km distribution lines. lower installation cost. The over ground distribution lines are however more vulnerable to interruption compared to underground cables, especially in rural areas where distractions (e.g. falling trees, strong winds, etc.) are likely to occur. Over ground transmission lines and long transmission lines are the main reasons of power interruption and energy loss for PLN who measures SAIDI (System Average Interruption Duration Index) and SAIFI (System Average Interruption Frequency Index). Figure 6: Indonesia SAIDI & SAIFI Figure 4: Indonesia s Transmission Line Figure 7: PLN Grid Performance PLN still relies on manual system management for transmission and distribution, which is reflected in the energy loss parameter results. Metering Advanced Metering Infrastructure (AMI) in Indonesia can be divided into two areas: smart metering, and data management & communication. Figure 5: Indonesia s Distribution Line PLN prefers to install over ground distribution lines instead of the underground cable due to Currently, PLN clients are using two types of metering systems - analogue and digital metering. The customer base is dominated by residential (92.7%) who is still reluctant to switch to digital metering due to the pre-paid scheme currently applied where tokens needs to be bought and KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 7

8 entered in the meter. Customers prefer to use the post-paid scheme as it relies on manual reading by PLN personnel. 12 % 4 % 2 % 82% Figure 8: Total PLN Customer 2015 SCADA (supervisory control and data acquisition) technology has been being applied by PLN for their data management system. It is separated into six different control centres across Java and Figure 10: PLN Communication System Figure 9: PLN Metering Composition The user rate of digital metering is 35%. Token counterfeits and unreliable metering communication systems are currently preventing digital metering from growing in Indonesia, says Anton Budianto, Chairman of Smart Grid Indonesia Initiatives. Another metering system implemented in Indonesia is Automatic Meter Reading (AMR) which is available for customers who use more than 200 KVa of electricity. Figure 11: PLN SCADA Data Management Bali with one central control centre and five region control centres. Instead of being able to automate the management system, self-heal, and generate useful information for PLN and its clients, the main function of SCADA in Indonesia is merely a data collection system. This is primarily due to the lack of integration of the different systems (PLN, 2015), (BPPT-PTKKE, 2014). PLN is currently using power line carriers, fibre optics, pilot cable, and radio link for data management system, with power line carriers being the primary method. Ideally, fibre optics is preferable as it can transmit large amounts of data faster. 8 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

9 POLICY AND TARGETS At present, Indonesia has no specific regulation on smart grids. The current Government is focusing on the development of new power plants. According to the 2015 state budget, the Government prioritises the energy sector and is working to achieve energy self-sufficiency. The target is to increase the electrification ratio to 100% by Electricity provision in villages and rural areas are prioritized. Ministry Decree No. 10/2017 (Power Purchase Agreement) and No. 12/2017 (Renewable Energy Power Plant) will have strong impact on the renewable energy sector. Due to technology development and economies of scale, renewable energy power plants in Indonesia are expected to contribute to improving the electrification ratio without becoming a burden to the state by requiring subsidies or feed in tariffs. Based on the decree 12/2017, PLN purchase electricity at a higher fee from renewable energy power plants that are located in rural areas in the eastern parts of Indonesia. Higher energy production price levels will also be applied for geothermal and waste to energy. The government has set the national price of electricity at USD 0,75 per KWh. The cost of generating electricity is however higher in some areas in Indonesia, especially in the eastern parts. OPPORTUNITIES Power Plants Renewable energy production in rural areas and power plant management in industrial estates constitute the main opportunities in Indonesia. Diesel power plants are commonly used in Indonesia, especially in rural areas. It is however not an ideal option as a primary electricity supply due to its high dependency on fossil fuels. Fuel can be very costly in rural areas due to difficult and expensive transportation, resulting in high electricity production costs. PLN requires technologies that are able to combine more than one renewable energy source to reduce the usage of diesel power. Furthermore, to reduce the risk of theft, the components need to be made from materials that are theft-proof or have low sales price in the secondary market. Micro grids that are being developed in Indonesia still often use manual control instead of having an automated power manager that runs the system. In line with the Government s target to increase the share of renewable energy, smart micro grid development in Indonesia is expected to grow rapidly. PLN has taken initiatives by collaborating with foreign private investors to develop pilot projects within micro grids. One of the most wellknown projects is the development of a smart micro grid in Sumba Island where a collaboration with Japanese companies uses three sources of electricity: diesel power plant, micro-hydro power plant, and solar panels. Translated into opportunities for Swedish companies there is a clear advantage when partnering and building consortiums to be able to offer solutions and not only products. Furthermore, the Government plans to construct 25 new industrial zones across Indonesia. Energy will become one of the main issues in industrial areas as the infrastructure to support the coming electricity demand is not yet ready. Public-private partnerships will most likely be set up to support the construction of local grids. One of the most successful projects within local grids is a project by the private company Cikarang Listrindo. The project included end-to-end solutions for electricity power in an industrial estate and managed to supply electricity to support all major industrial activities in the Cikarang area. Transmission & Distribution Transmission and distribution solutions also pose promising opportunities for Swedish companies. Even though Java has one circuit grid, it is however not considered a smart grid since there are cases when excessive power produced by one power plant cannot be transmitted to other areas with higher demand. This happens due to a lack of reliability in the grid communication systems and the transmission line. KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 9

10 Excessive energy supply in Central Java that cannot be transferred to other Java areas is one of the examples to show that transmission and distribution line in Indonesia is not efficient. (Anton Budianto, Chairman of Smart Grid Indonesia Initiatives) Underground cable installations for high quality transmission lines and distribution lines is one of the options for PLN to improve the electricity quality in Indonesia. The grid also needs to be equipped with technologies to control the power traffic management including automated operation and maintenance of the grid (centralized ICT). This constitutes an opportunity for Swedish companies that are working with power traffic management and balancing. Collaboration with PLN is key to be able to work with this opportunity. Smart Metering PLN needs to improve the efficiency of its AMI (Advance Metering Infrastructure). Integration of the SCADA system is essential as it is one of the most important factors to create two-way communication which will eventually benefit both PLN and the customers. This opportunity is probably well suited for consultant companies that can work with PLN to plan how to improve the metering systems. In the implementation of AMR (Automatic Meter Reading), PLN still faces obstacles with data transfer from users to PLN s server, something that can be greatly improved with new communication infrastructure. Furthermore, PLN requires technologies that enable two-way communication. This has been installed in several housing areas in Jakarta that are equipped with solar panels which enable users to supply the electricity to PLN, enabling net metering. PLN is however not applying equal price between electricity that it buys versus what it sells and is thus not yet incentivising this behaviour. PLN purchases the excess electricity at half the price of the electricity sold to its customers. CHALLENGES The market for smart grids, transmission, distribution, and smart metering is centralized. PLN is the main stakeholder and owns a majority of power plants and their utilities. Even though there are several privately owned power plants, the biggest customer will still be PLN. PLN has just started to develop its roadmap for smart grids supported by Siemens. Other foreign countries are supporting PLN in developing the smart grids through pilot projects, such as Smart Grid in Cikarang Industrial Zone by NEDO (Japan) and smart building implementation by Honeywell (USA). The competition is starting to tighten as many investors from various countries are starting smart micro grid activities in Indonesia. The Government is also committed to increase the share of local components in all power plant development to a minimum of 40% by As a benchmark, the current local contribution is 19%. By issuing this regulation, the Government encourages local producers to increase their capacity. On the other hand, it may become an issue for investors who rely on imported parts (PLN, 2017). Issues with land acquisition is also a constraint, especially in the Eastern part of Indonesia hampering the development of the electricity infrastructure. Access to funding is also a major obstacle in Indonesia as most power producers are required to fund the projects themselves by private capital. The Government is reluctant to spend its budget for pilot projects and expects projects to be fully funded by the vendor and instead offers contracts with guaranteed purchasing of electricity over a long period of time. This means that the risk will be borne by the investors who will need to secure funding and apply a design, build, and operate model in order to sell in Indonesia. 10 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

11 KEY FOCUS AREA 2: ENERGY EFFICIENCY MARKET OVERVIEW With its vast natural resources, Indonesia has enjoyed a booming oil production, coal extraction and energy subsidies for electricity and transportation. In 2013, Indonesia ranked number 103 out of 134 countries in the World Bank energy intensity ranking. Indonesia s total energy consumption in 2014 was equal to around 962 million BOE (Barrel Oil Equivalent) with the industrial sector being the biggest consumer, using 48% of the total energy consumption. Figure 12: Energy Consumption End Users POLICY AND TARGETS Indonesia plans to switch to a more efficient and sustainable energy generation and consumption. A clear roadmap has been developed (PLN, 2017) and Indonesia has made a commitment to initiate and support any activities that can reduce its greenhouse gas emission (GHG) by up to 29% by annum. Currently less than 7% of the energy mix is generated from renewable energy. The Government plans to increase the contribution of renewable energy to 23% by 2025 leading to the energy mix shown in figure 13. (BPPT, 2016) Indonesia plan to slow down the rapid energy consumption growth by initiating and supporting activities aimed at energy conservation. It is expected that in 2025, various energy efficiency measures will reduce the total energy consumption by up to 11%. (Ministry of Energy and Mineral Resources, 2015). Policies have been issued by the Government related to energy conservation in Law no on energy and government regulation no on energy conservation: Efficient energy provision in terms of technology and operations. Meaning that any power producer about to invest in new technology will have to show that it is efficient according to SNI (Standard Nasional Indonesia). Energy management is required for industries that consume more than 6000 TOE per year. The Government has issued a minimum standard for of energy consumption in electronic appliances. Currently it focuses on two main appliances - lamps (CFL) and Air Conditioner (AC). The Government will extend the standard to 12 additional electric appliances. In line with ISO50001 certification requirements, Ministry of Energy and Mineral Resources cooperates with Ministry of Industry to develop The commitment to reduce GHG emissions has resulted in a government policy with strategies for reducing GHG emissions: Better composition of primary energy mix (energy diversification) by reducing the reliance on fossil fuel. Structured efforts in energy efficiency initiatives and conservation of energy. The overall energy consumption is expected to grow as the economy of Indonesia grows with 5-6% per Figure 13: Indonesia Energy Target Mix KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 11

12 technical guidance for industries in selecting their industrial equipment such as boilers, furnaces, motors, etc. (Ministry Energy and Mineral Resources, 2012). OPPORTUNITIES Industrial Sector Almost all the industrial energy is supplied by fossil fuels such as coal, oil and gas as seen in figure 14. The segment is heavily privatized with PLN only supplying 8% of the total industrial energy consumption. Industrial sector efficiency improvement potential has been estimated to 10-30% and the Government has set a sectoral saving target of 17%. The Government has released a guideline on how the industry can develop its energy efficiency initiatives. The initiatives start from the simple and no -cost initiatives such as automatic switch or readjusting operating hours. Energy efficiency technologies in the guideline includes: Plant Integration & Control. Combustion & Fuel Efficiency. Power Quality Improvement. Building Power Management System. Efficient Lighting, Motor (magnetic), Fan, & Compressor. Specific technologies to improve energy efficiency Figure 14: Industry Power Source 70% of the energy used by industries is consumed by seven main industries in Indonesia - pulp and paper, textile, cement, fertilizer, steel, ceramic and palm oil. (Fitriana, Ira, 2012). Compared to benchmarked countries (i.e. Japan and India), industries in Indonesia consume more energy for the same processes performed. For example, the Indonesian steel industry consumes 35% more energy compared to Japan in its arc furnace for the same amount of steel. (International Energy Agency, 2016). Details of the energy consumption discrepancies between Indonesia and benchmarked countries is illustrated in figure 16. In order to be more efficient in energy consumption, the Ministry of Energy and Mineral Resources requires all industries consuming more than TOE per year to appoint an Energy Manager and conduct energy audits. Figure 15: High Energy Consumption Industry Figure 16: Main Industries Energy Consumption Discrepancy Compared To India & Japan for the high energy consuming industries such as pulp and paper, textile, cement, fertilizer, steel, and ceramic will have a big impact on energy savings. (Centre for Green Industry and Environment Assessment Agency for Industrial Research and Development Ministry of Industry, 2015) 12 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

13 Commercial and Residential Sectors Potential energy savings from energy efficiency is estimated to around 10-30% for commercial and 15-30% for residential buildings. The Government s energy efficiency improvement target for 2025 for both sectors is set to 15%. (Ministry of Energy and Mineral Resources Directorate of Energy Conservation, 2014). Energy efficiency awareness in the commercial building sector is starting to grow in Indonesia and can be seen by the increasing number of certifications awarded by the Green Building Council Indonesia. The President has instructed that all state owned company buildings, Government offices residences, and road lights shall undergo systematic efforts in energy saving leading the Local Government of Jakarta and Bandung to issue guidance on green building implementation for property developers including: Systems to maximize the utilization of natural light and ventilation Modernization of ventilation and air conditioning system Lighting and transportation systems within buildings Energy efficient electrical systems In general, 60% of the energy consumption in commercial building goes to climate control while pumps, lighting, and lifts consume the remaining 40% (Ministry of Energy and Mineral Resources Directorate of Energy Conservation, 2014). Replacing conventional ballast with electronic ballast Installing Variable Speed Drive / VSD in pumps and fans Improving the power quality and implementing building power management systems Implementing inverter lifts and escalators, as well as transportation management systems CHALLENGES There are several challenges in implementing energy saving technologies: Limited knowledge and awareness at management level in identifying the potential of saving from energy efficiency efforts Limited information on integrated technology Limited access to funding for energy efficiency programs The Ministry of Energy and Mineral Resource has issued a profile book describing in detail the potential energy efficient investments in the industry, which is based on the general energy audit results and existing technologies. The Ministry expects to develop initiatives that can be realized by industries and commercial buildings which are attractive enough to be funded by the Energy Services Company (ESCO) a for-profit organisation that supports implementation and provides funding for companies for certain energy efficiency related investments. (Ministry of Energy and Mineral Resources Directorate of Energy Conservation, 2014). The development of ESCO in Indonesia is not as promising as expected as the business model that involves ESCO has not reached the targeted penetration and has not yet been proven in Indonesia. Figure 17: Common Building Electricity Consumption The Government recommends several initiatives to actively design with energy savings in mind: Replacing old lighting with energy efficient alternatives KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 13

14 KEY FOCUS AREA 3: SUSTAINABLE HEATING AND COOLING MARKET OVERVIEW Rapidly growing industries and warm tropical weather in Indonesia drive high energy consumption from boilers and chillers. This chapter is focusing on industrial heating and residential & commercial cooling as these two sub focus areas have the highest energy consumption. The selection can be seen in figure 18. Industrial cooling is not yet developed but is in the governments cold storage chain strategy. The Indonesian industry contributes to 48% of the total national energy consumption. Of the total industrial energy consumption for heat, 82% is used for boilers and 17% for furnaces. Demand for energy in the industrial sector is expected to grow by more than 5% per annum with coal and gas as the primary source of energy with share of 48% and 27%, respectively (Ministry of Energy and Mineral Resources Republic of Indonesia, 2016). Textile will be the industry with the largest energy demand by 2025, consuming 223 TWh. This growth is primarily due to the government s plan to become less reliance on imported textile products (39% of the current supply is imported) by increasing domestic textile production, the increase of domestic textile consumption itself by 17% p.a., and inefficient old textile production machinery. Figure 20: Main Industrial Energy Consumption Growth Figure 18: Indonesian Heating and Cooling Applications Sustainable Heating for Industry Figure 19: Industrial Heat Consumption For the pulp and paper industry, electricity generated from steam is primarily used in the production process. On average, 40% of the onsite produced electricity is produced using the cogeneration system. The co-gen fuel comes from various sources, e.g. from the largest local pulp and paper manufacturers, PT Indah Kiat Pulp & Paper, which consists of black liquor (73%), bark (13%) and coal (13%). For the cement industry, 35% of the total production cost is for energy, of which 58% is currently generated from coal. However, the coal used in the cement production has a low calorific value resulting in inefficiency and higher carbon emissions (Ministry of Industry, 2012). 14 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

15 Sustainable Cooling For Residential & Commercial do not have water heaters. (Ministry Energy and Mineral Resources, 2012). POLICY AND TARGETS Industrial Sectors There are several regulations in place related to heating for industrial estates: Figure 21: Energy Utilization in Residential and Commercial The chart above shows that residential and commercial consume 15% of the total national energy. On average, 50% - 60% of electricity expenses of a commercial building are for cooling purposes. Ministry of Environment and Forestry Regulation No. 7/2007 on the emission standard for industrial boiler by type of fuel. Ministry of Industry Regulation No. 54/2012 on minimum local content requirement for different types of power plants, including combined cycle power plant setting the minimum local content from 25% to 40% for power plants. Import duties for boiler and furnace to be used in the construction in power plants will be subsidised by the Government. General Plan of National Energy requires steam power plant with a capacity exceeding 600 MW to use super critical boiler technology. Commercial Buildings Figure 22: AC Sales Growth Residential in Indonesia (landed houses and apartments) mainly uses split AC for cooling purposes, each with one compressor unit and one evaporator unit. AC sales grew at a CAGR of 8% from 2010 to 2015 with demand of over 2,2 million units per year and 26% penetration rate. Other Sustainable Heating and Cooling The Government is currently planning to build cold storages across Indonesia in order to support the Sea Toll project - the integrated supply chain across Indonesia. Despite the increase in construction of new apartments, most of the existing landed houses Besides the policies previously discussed in the Energy Efficiency chapter, sustainable cooling in Indonesia is primarily stipulated under green building and energy efficiency regulations: DKI Jakarta s Governor Regulation No. 38/2012 on Green Building that sets out criteria to obtain building construction license (IMB) and certificate of feasible function (SLP). (DKI Jakarta Governor Office, 2012) National Standard (SNI ) which requires energy conservation for AC system in a building with temperature of 24 degree Celsius and humidity of 60% (± 5%) Green Building certification (GREENSHIP rating tools) on voluntary basis that assesses among others, air quality and thermal comfort There are currently 20 buildings that are GREENSHIP certified. In the pipeline, there are 54 projects new buildings and 4 existing buildings KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 15

16 being assessed for GREENSHIP certification (DKI Jakarta Governor Office, 2012). OPPORTUNITIES Sustainable Heating for the Industrial sector Most of Indonesia s smelters and mineral processing plants are not concerned about heat losses during the process, which in fact can be regenerated into electricity. Heating insulation technology is also required to have a more efficient smelting process. Most of the existing smelters in Indonesia are developed based on outdated technologies. Even our shoes can be melted when we enter the processing plant. This is a good timing if Sweden has technology for heating insulation as Indonesia builds smelters as consequences of raw ore export ban. Titovianto Widyantoro from the Association of Energy Conservation Experts (HAKE). An example of a sustainable heating project in Indonesia is the 8.5MW capacity Waste Heat Recovery Power Generation (WHRPG) in PT Semen Padang, which is a collaboration project between the Ministry of Industry and the Government of Japan. Mr. Prasetyoadi, Director of Rating Development Deputy for International Relations of Green Building Council Indonesia (GBCI) states: Companies, especially multinationals such as Unilever, Holcim and Nike are starting to implement more sustainable technology in their factories to support the companies global sustainability program. Potential sustainable technologies and solutions to be implemented are: More efficient boiler and furnace or retrofit current systems, i.e. co-generation or combined heat and power (CHP), installing components such as preheater, economizer, automatic air-fuel ratio control, additional heat exchanger, advanced process controller, etc. Waste heat recovery for pulp and paper, ceramics, cement, petrochemical and steel industry. Technologies include Organic Rankine Cycle (ORC) and condensate recovery systems Process steam district network in industrial zones Sustainable Cooling For Residential & Commercial While most of landed houses are using split AC, several apartments are starting to use Variable Refrigerant Volume (VRV) chiller system, where one compressor unit can be connected to several evaporator units that can be controlled individually. For commercial buildings (office buildings, hospitals, hotels, etc.), VRV and centralized chillers are typically used for the whole building or several buildings within the complex. There are large construction projects commenced and targets have been set by several property developers for green building construction. As an example, Sinarmas Land - one of the largest Indonesian property development conglomerates, targets to construct 20 green buildings within the next 10 years. BSD Green Office Park is another example. There are several sustainable solutions available to reduce electricity consumption for cooling purposes: Reducing thermal load through passive cooling design by using: - Shading - Vegetation - Ground cooling - Natural ventilation Using sustainable building materials, such as: - Low-emissivity window glass - PCM wallboard Using more efficient cooling systems, i.e. through installing magnetic drive pump that improves energy efficiency ratio Retrofitting hydrocarbon (HC) refrigerants Installing district cooling system in new superblocks Any Swedish company supplying such products have large opportunities in Indonesia through 16 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

17 working with developers and building management. Other sustainable heating and cooling Another potential is in the sustainable cooling for cold storage to support the Government s Sea Toll project. In 2016, the Government has opened cold storage industry to 100% foreign investment from previously 33%-67%. At present, cold storage industry in Indonesia still requires approximately USD902 million of additional investment to improve installed capacity to a sufficient level. CHALLENGES Old technologies are still commonly used by industries and have not been replaced. Hence, retrofitting current equipment might be a more attractive option than replacing current machines. According to GBCI, there has been a discussion and plan to apply district cooling in Jakarta, i.e. Sudirman Central Business District (SCBD) area. However, there has been no actual implementation to date due to several constraints: Limited access to funding available as there has been no proven successful project in district cooling Lack of trust to the electricity provider - With or without district cooling operator, building management still have to invest in generators as a back-up in the event of power blackout Various building owners and/or operators in one area make it more difficult to align the decision to use one district cooling operator High humidity levels resulting in a corrosive environment in Indonesia makes district cooling difficult Limited space available in the urban areas The fact that the business model of district heating and cooling implemented in Sweden might not be relevant or suitable for Indonesia might explain why there have been no successful implementations to date. KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 17

18 ANALYSIS OF KEY FOCUS AREAS Eleven sub key focus areas were identified that address the Indonesian markets needs. Please see Appendix 1 for the definition and scope of the sub key focus areas. An in-depth analysis on the sub key focus areas have been performed using three parameters; market potential, incentive and barrier to entry, and market maturity. A weighted average score has been allocated for each sub key focus area. Please refer to Appendix 2 for detailed explanation on the parameters used to assess the sub key focus areas. According to the matrix analysis, smart microgrids and building power management systems are the key focus areas with the highest potential. Sustainable cooling system is perhaps surprisingly recommended to be observed passively as there is no government push on which type of chiller that should be used in buildings and due to the fact that no district cooling system exist in Indonesia yet. Most buildings still uses split AC and competes in a saturated and highly competitive market. Figure 23: Indonesia market potential and maturity for 3 key focus areas 18 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

19 SUB FOCUS AREA 1: SMART MICROGRIDS Smart micro grids is the most attractive sub focus area in Indonesia (BPPT, 2012): Very low electrification ratio in small remote islands of Indonesia High dependency on diesel power plants in Indonesia s islands which impacted to high energy cost The government prioritizes to increase the electrification ratio, renewable energy source utilization, and eastern and frontier islands development Pilot projects can be found in several locations across Indonesia, such as in Baron Techno Park (Java), Nusa Penida Island (Bali), and Sumba Islands. However, none of those projects have been able to generate stable electricity due to insufficient wind and solar resources, battery and power management incapability, and extreme climate conditions causing rapid corrosion. INVESTMENT ENVIRONMENT The Government of Indonesia has issued regulations about Energy Investment in Indonesia. One of the regulations is stipulated in the Negative Investment List that prohibit foreign investors to enter into power plants with a capacity less than 1 MW. However foreign investors can own up to 95% of a power plant business with a capacity of more than 10MW. Maximum 95% of foreign ownership is applicable for some energy sectors, such as transmission, distribution and consultation. Unequal distribution of economic development in Indonesia between the Western and Eastern part creates a big gap in the cost of energy production for both regions. The regulator incentivizes potential investors to develop renewable energy power plants in provinces that still have high costs of energy production. One of the incentives is on the form of higher price scheme applied in Power Purchase Agreement with PLN. There are 13 locations that are becoming key priorities for the Government of Indonesia in regards to the renewable energy development, visible in figure 24. (Ministry of Energy and Mineral Resources Directorate of Energy Conservation, 2013). RENEWABLE ENERGY POWER PLANT DEVELOPMENT Ministry of Energy and Mineral Resource developed a guideline on the development of renewable energy power plant that can be implemented in all sources of energy, such as wind, solar, hydro, biomass, etc. (Ministry of Energy and Mineral Resources Directorate of Energy Conservation, 2014). Figure 24: Prioritized Locations for Renewable Energy Development KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 19

20 Location selection Developers can select the most suitable location, and is asked to deliver a prefeasibility study (pre- F/S) to proceed with the development. The developer needs to ensure the sustainability of renewable energy resource supply in the area i.e. wood feedstock for biomass, wind speed for wind power plant, or solar intensity for a solar power plant. Other information that is required in the pre- F/S are PLN s cost of production in the respective area, local transmission and distribution, local communities and potential development. Water resource and soil utilization permits from Ministry of Forestry and Environment Power purchase Agreement (PPA) The agreement is made between the power plant developer and PLN as a sole buyer of electricity from Independent Power Producer (IPP). In this stage, the developer needs to prepare a PPA proposal, grid interconnection point proposal and purchase agreement timeline. The PPA will be signed by both parties after the temporary Electrical Power Generation Business License (IUPTL) and bank guarantees are ready. Administrative Authority There are some options to acquire an administrative authority of a site or location. It can be directly acquired by the investor (very costly, and therefore not recommended) or get an approval from local authority to utilize their land during a certain period of time. The authority s approval is also one of the requirements to secure a Power Purchase Agreement. Steps to get administrative authority s approval can vary across the country, depending on the local government regulation. Regardless of the differences, the main steps may include: (PwC, 2013). Electrical Power Supply Business License (IUPTL) Under the prevailing regulations, electricity supply business in Indonesia is divided into two categories, namely electricity supply for public use, and for private use. Both business categories require licenses. The electricity supply for public use requires an Electric Power Supply Business License (Izin Usaha Penyediaan Tenaga Listrik/ IUPTL), whereas the electricity supply for private use requires an Operational License (Izin Operasi). Both licenses are issued by the Minister of Energy and Mineral Resources (MEMR), governor, or regent/mayor pursuant to their respective authorities. Acquiring principal license from Indonesia Investment Coordinating Board (BKPM) Securing environmental license Figure 25: Renewable Energy Development Stages 20 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

21 Funding The development of new and renewable energy in Indonesia will rely heavily (around 65%) on private placement (including pension funds, insurance companies, etc.), investment from state-owned company (e.g. PLN and Pertamina) for 19%, Energy resilience fund (13%), and the national budget (4%). There are a number of potential sources of funding for renewable energy power plants. Government established PT. Sarana Multi Infrastruktur is one of the companies that actively finance renewable energy power plants. Some SoE Banks such as Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) are also interested in the implementation of proven renewable energy technology in Indonesia. PPA will be one of the critical points that will be assessed by any Bank. International financial organizations, such as ADB, World Bank, IFC, also actively provides funds in Indonesia. Construction and Commissioning This stage consists of three main activities: Power plant physical construction Inspection and running test for all of equipment Interconnection between power plant and PLN grid. Developers will need to engage a licensed technical inspector in order to get the Operation Readiness Certificate (SLO). PLN will issue an interconnection certificate that enables the power plant to be connected to the PLN grid. PLN and the developer will also need to agree on the Commercialization Date (COD). Legal Aspects It is recommended for foreign investors to have a separate entity to minimize the potential risk of the investors, and to be able to get income tax relief from the government. Technology planning One of the PPA requirements is to present an implementation plan for the needed technology. It consists of two steps that are Front End Engineering Design (FEED) and Detail Engineering Design (DED). During FEED, developer needs to appoint a mechanical electrical contractor to design the layout of the power plant and to conduct soil investigation. While during DED, the developer is required to close a deal with an Engineering, Procurement and Construction (EPC) contractor. A DED is essential to secure the construction license. Additionally, it will also define the equipment that should be imported to Indonesia, and the developer can apply for import tax exemption. KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 21

22 SUB FOCUS AREA 2: BUILDING POWER MANAGEMENT SYSTEM As reported by GBCI, building energy consumption is about 18-25% of total energy consumption in Indonesia. The awareness on building energy management in Indonesia is increasing. The Green Building Council Indonesia (GBCI) has seen a high growth in the demand for GREENSHIP certification. Jakarta is the leading province in term of development of energy efficient buildings through policies. Jakarta has a commitment which translated to 30% reduction of electricity consumption, 30% GHG emission, and 30% water consumption by the year RELATED REGULATION Jakarta s Governor issued a regulation on green buildings which covers energy efficiency, ventilation, air conditioning, lighting, transportation, and electricity. This green building regulation is applicable to any buildings in Jakarta which have at least 50,000 m 2. In Bandung similar requirements apply, but only for buildings with 5,000 m 2 or more. INVESTMENT ENVIRONMENT There are some sectors related to building energy management that are reserved for Indonesia s SMEs as stated in the Negative Investment List 2016: Construction services (construction contractors) with simple and medium technology and/or small and medium risks and/or work value of up to IDR 50 billion Business services / construction consultancy services with simple/medium technology and/or small/medium risks and/or value less than IDR 10 billion Home and building cable installation For trading, there are some restrictions on foreign ownership: Maximum foreign ownership 67% for distributor s business not affiliated to production No foreign ownership is allowed in retail business BUILDING POWER MANAGEMENT SYSTEM MARKET DEVELOPMENT & OPPORTUNITIES Indonesia is a developing market for building power management system. There are several key stakeholders to be approached by suppliers of building power management system supplier in Indonesia, these are described briefly below and are visible in figure 26. Building Management/ Operator Hotel chains, such as Accor, Ritz, Marriot, Pullman, or other global chain hotel puts building energy efficiency as one of their key considerations. These building operator or management will push the building owner to perform retrofit energy efficiency alternatives and implement this technology in any new building. Building Owner To improve the investment climate, the Government of Indonesia has recently opened an opportunity for foreign ownership in Indonesian property. This regulation has motivated building developers in Indonesia to build grade A building which puts heavy emphasis on energy efficiency. Building owners, such as Astra Land Indonesia, Ciputra, Sinar Mas, Salim Group (BCA) and Jakarta land have developed some buildings in Indonesia which follow the green building guidelines. Building Planning Consultant Building owners vision and plans are translated to a technical design by a building planning consultant. Building planning consultants projects with a cost of less than USD 750,000 should be done by SMEs. Beyond that, foreign ownership can participate. Indonesia also has some 22 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

23 prominent building planning consultant as Metakom, Arkonin, and Ciputra. The consultants develop design and technical specification on products that will be used in construction. Main Contractor Most of the big property and building players in Indonesia have their own contractor, such as Jakarta land property group has PT. Balfour Beatty Sakti Indonesian and Ciputra group has Jaya Konstruksi Manggala Pratama. The government of Indonesia has some civil contractors that plan to be synergized in the future. Those companies as PT. Wijaya Karya, PT. Waskita Karya, PT. Nindya Karya, PT. Pembangunan Perumahan are some of the SoE that engage in building construction. Besides buildings, they also have capability in road, bridge, power plant and manufacturing construction. Electrical Contractor Electrical contractors can be a key influencer in power management in building construction sector. This type of contractors work includes electrical installation, machinery installation (including lift, pumps, escalator, etc.), electronics connected to internet, and air conditioning. Figure 26: Building Power Management System Development KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 23

24 CONCLUSION growing nation and the worlds fourth largest nation by population. The Energy sector in Indonesia is presenting many opportunities for Swedish companies. The country is expanding and will according to government forecasts expand its energy use by more than 5% annually. The government of Indonesia have assigned the state owned company PLN to increase electrification and the share of renewable energy production. The main source of new energy in Indonesia will still be from fossil fuels as the key focus is still on overall growth. Smart micro grid solutions and smart building energy management are areas where the most promising opportunities are present and Indonesia as a market has ambitious targets in the energy sector. The single purchaser of energy in Indonesia, PLN, is looking to expand energy production in the country and is incentivizing companies to invest by offering long term power purchasing contracts (PPA). Obtaining a PPA is however a rather complex process which requires quite a lot of effort from companies looking to set up energy production facilities in Indonesia. For smart micro grids the main opportunity lies in the many islands that need local small to medium scale production but with the challenge that electricity prices are set on a central level which makes profitability in remote areas difficult to achieve for innovative companies. For smart building energy management the opportunity lies in the many old or nonexistent systems to heat and cool buildings which present a huge potential for companies with relevant solutions. Finding the right stakeholder to approach and access to finance becomes challenging when competing with cheap old cooling and heating technology which is cheaper to replace rather than considering the operational and economical benefits of investing in a modern and efficient but more expensive system. Indonesia is a nation in need of modern solutions to increase the availability, efficiency and quality of energy and Swedish companies that offer solutions will be very welcome to take part in shaping the future of an economically rapidly 24 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

25 APPENDICES APPENDIX 1: KEY OPPORTUNITY AREAS Smart Grids Smart Micro Grids Small grid in rural areas that is powered by renewable resource and has the ability to manage supply and demand automatically. Technologies included are efficient renewable energy power plant, energy storage and power manager. Wide Area Management Control system that enables existing power grid to communicate between supply, demand, transmission and distribution automatically. Selfhealing and automatic power traffic are the main features. Smart Metering Electricity measurement system from the end user side that enables end users to measure and control their electricity consumption to improve efficiency. This includes net metering system. A centralized power monitoring and control system for electronic devices in buildings in order to achieve efficient state of power utilization. Efficient Lighting, Motor, Fan and Compressor Less energy-consuming lighting, motor, fan and compressor that generate the same level of output. Sustainable Heating and Cooling Waste Heat Recovery Technologies that can utilize excess heat from boiler, furnace and/or other machineries as the by-product of process. Technologies included are Organic Rankine Cycle (ORC) and condensate recovery system. More Efficient Cooling System Technologies included are Variable Refrigerant Flow (VRF) and district cooling. Energy Efficiency Plant Integration and Control Centralized power monitoring and controlling system for industrial machineries. These include technology for maintenance, parameter control, and optimization purposes. Combustion and Fuel Efficiency Technologies for industrial combustion to generate maximum calories from the same amount of fuel. Technologies included are coal drier and pulveriser, automatic gas valve control, and air preheater. Power Quality Improvement Technology to minimize harmonizes, flicker, spike, unbalanced voltage, outage, transient and other power quality parameters. The technology should enable automatic measurement and control. Building Power Management KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 25

26 APPENDIX 2: PARAMETERS FOR THE MARKET ASSESMENT No. Parameters Sub parameter Weighted Key Words Key Questions 1 Market Potential 50% Size and growth Who is the buyer? How big is the market? What are the key drivers of the market growth? 2 Market Attractiveness Barriers to Entry 25% Regulation and Competition What are regulations applied within the area? How are the regulations implemented? Does the Government have the roadmap or policy target? Does the roadmap or policy target align with the technology? Who are the players? Are they dominating the market? What are their current projects within the area? Market Maturity 25% Technology gap and funding What is the current pain point within the area? How big is the gap between the ideal technology and the current technology applied? How established is the business model? Is there any government incentive/funding or global fund available? How strong is the buying power? Are there any enablers or infrastructure required prior to the technology application? 26 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

27 INTERVIEW LIST 1. Suryadarma, Chairman of Masyarakat Energi Terbarukan Indonesia (METI)/ Indonesia Renewable Energy Association 2. Prasetyoadi, Deputy for International Relations and Rating Development Director of Green Building Council Indonesia (GBCI) 3. Aris Ika Nugrahanto, National Project Coordinator United Nations Industrial Development Organization (UNIDO) 4. Farida Zed, Director of Energy Conservation, Ministry of Energy and Mineral Resources, Directorate General of New and Renewable Energy 5. Anton Budianto, Chairman of Prakarsa Jaringan Cerdas Indonesia (PJCI)/ Indonesia Smart Grid Association 6. Andhika Prastawa, Head of Energy Conversion, Agency for The Assessment and Application of Technology (BPPT) 7. Titovianto Widyantoro Association of Energy Conservation Experts (HAKE). KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES TEAM SWEDEN 27

28 REFERENCES BPPT. (2012). Smart Grid for Smart City. Jakarta. BPPT. (2016). Indonesia Energy Outlook 2016: Energy Development in Supporting Green Industry. Jakarta. BPPT-PTKKE. (2014). Electricity System Development Study - Advanced Metering Infrastructure (AMI). Jakarta. Centre for Green Industry and Environment Assessment Agency for Industrial Research and Development Ministry of Industry. (2015). Industrial Energy Efficiency Initiatives and Standard. Jakarta. DKI Jakarta Governor Office. (2012). DKI Jakarta Governor Regulation No. 38/2012 on Green Building. Jakarta. Fitriana, Ira. (2012). Energy Supply and Provision for Industrial Sector. Jakarta: ResearchGate. International Energy Agency. (2016). Energy Efficiency Market Report. Ministry Energy and Mineral Resources. (2012). Indonesia Electricity Infrastructure Development. Jakarta. Ministry of Energy and Mineral Resources Directorate of Energy Conservation. (2013). Energy Efficiency Investment Profile. Jakarta. Ministry of Energy and Mineral Resources Directorate of Energy Conservation. (2014). Energy Efficiency of Buildings in Indonesia (presentation). Jakarta. Ministry of Energy and Mineral Resources Directorate of Energy Conservation. (2014). Investment and Potential Opportunity in New, Renewable Energy and Energy Conservation. Jakarta. Ministry of Energy and Mineral Resources. (2015). Electricity Statistics. Jakarta. Ministry of Energy and Mineral Resources Republic of Indonesia. (2016) Handbook of Energy & Economic Statistics of Indonesia. Jakarta. Ministry of Industry. (2012). Industrial Energy Sector Demand Planning for Industrialization Acceleration. Jakarta. PLN. (2015). SCADA at PLN. Jakarta. PLN. (2016). PLN Initiatives and Implementation of Smart Grid. Jakarta. PLN. (2017). Electrical Power Provision Plan (RUPTL) Jakarta. PwC. (2013). Power in Indonesia Investment and Taxation Guide Jakarta. 28 TEAM SWEDEN KEY OPPORTUNITIES FOR SWEDISH COMPANIES AND TECHNOLOGIES

29 BUSINESS SWEDEN INDONESIA World Trade Centre 5, 9 th Floor Jl. Jend. Sudirman Kav Jakarta Jakarta@business-sweden.se