POLICY ON SOLAR AND BIOENERGY DEVELOPMENT IN INDONESIA
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1 MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION POLICY ON SOLAR AND BIOENERGY DEVELOPMENT IN INDONESIA Andriah Feby Misna Director of Bioenergy Presented at The German Indonesian Conference on Decentralized Energy Supply Solutions Utilizing PV Hybrid and Bioenergy Technology in Indonesia Jakarta, March 20, 2018 ebtke.esdm.go.id djebtke
2 EBT MW Current Energy Condition The capacity of NRE-based power plant needs to be increased Energy distribution should be optimized to increase electrification ratio and ensure energy equality Indonesia is committed to work towards Paris Agreement Energy price is required to be pushed down to make it affordable RP RP RP Efisien Inefisiensi Energy utilization is not yet efficient Indonesia s energy is still dominated by fossil energy EBT Fosil % Potensi EBT = % EBT Abundant Renewable Energy potential is not yet optimally utilized ebtke.esdm.go.id djebtke_kesdm Lintas 2
3 National Electrification Ratio ACEH SUMUT RIAU JAMBI KEPRI KALBAR KALTARA KALTIM SULTENG GORONTALO SULUT MALUT NATIONAL 95.35% BABEL SULBAR PABAR PAPUA INFORMASI > < 50 SUMBAR BENGKULU SUMSEL LAMPUNG DKI JAKARTA BANTEN JATENG JABAR DIY KALTENG JATIM KALSEL BALI NTB ,15 SULSEL ,95 SULTRA NTT ,56 80,51 84,35 MALUKU ,30 91,16 Realisasi: 93,08 92,75 95,15 97, ebtke.esdm.go.id djebtke_kesdm Lintas 3
4 Renewable Energy Potential Hydro Solar Geothermal Potential : 75 GW (19,3 GW) Realization PLTA 5,124 GW PLTMH 0,206 GW (1,19%) Potential : 207,8 GWp Realization PLTS 0,090 GWp (0,02%) Potential Resources: 11,0 GW Reserve : 17,5 GW Realization PLTP 1,808 GW (0,40%) Wind Potential : 60,6 GW Realization PLTB :1,1 MW (0,0002%) Bioenerg y Potential PLT Bio : 32,6 GW BBN : 200 Ribu Bph Realization PLT Bio : 1,840 GW (0,4%) Sea Potential : 17,9 GW 441,7 GW 9,07 GW (2% of total potential) Current Installed Capacity MW: : MW NRE Power Plant Capacity 15% of the total of installed capacity Fossil Energy Potential Fossil Energy Proven Reserve Production Estimation Oil 3,6 bilion barrel 288 million barrel 12 years Gas 98 TSCF 3,0 TSCF 33 years Coal 32,4 billion ton 393 million ton 82 years Shale Gas 574 TSCF - - Note: *) assumption if no new reserves invented ebtke.esdm.go.id djebtke_kesdm Lintas 4
5 Policies and Regulations on NRE Development ebtke.esdm.go.id djebtke_kesdm Lintas 5
6 Energy Policies 01 Energy is an instrument to materialize social justice: energy should be available, equitable, and affordable; 02 Energy subsidy should be minimized; 03 Energy should improve people welfare (affordable) and increase industries' competitiveness; 04 Renewable Energy Utilization is a must; 05 Licensing cut off and simplification to encourage Renewable Energy investment. ebtke.esdm.go.id djebtke_kesdm Lintas 6
7 STRATEGY TO ACCELERATE RENEWABLE ENERGY DEVELOPMENT 1. Prioritize the development of geothermal energy, hydro, bioenergy, solar and wind; 2. Provide fiscal and non-fiscal insentives; 3. Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Bordered Areas, and Small Island with Population through the Implementation of Small Scale Power Generation; 4. Assignment to State-Owned Companies and Public Service Agencies 5. Facilitate private sector with PT PLN (Persero) to accelerate PPA; 6. Implement the Solar Powered Efficient Lamp (LTSHE) program as a pre-electrification program ebtke.esdm.go.id djebtke_kesdm Lintas 7
8 RENEWABLE ENERGY ROLES To increase energy supply; Renewable energy is targeted to achieve 23% by 2025, or equal to 45 GW. To accelerate the provision of modern energy access; Electrification ratio should increase up to 99% by To contribute in reducing greenhouse gas emission reduction program; Indonesia is committed to reduce its GHG emission by 29% in 2030 against a BAU baseline scenario. Energy sector is targeted to contribute in reducing emission up to 314 M tons of CO2. As a green economy driver. ebtke.esdm.go.id djebtke_kesdm Lintas 8
9 Increasing Infrastructure RE Capacity Power Plant Commercial On-grid and off-grid communal systems: Solar PV, Mini/ Microhydro, Wind, Marine, Bioenergy PP Source of Funds: Private Sector (Investor) Legal Basis MEMR Reg 50 of 2017 on Utilization of Renewable Energy Sources for the Provision of Electric Power; MEMR Reg 38 of 2016 on Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Border Areas, and Small Island with Population through the Implementation of Small Scale Power Supply Improvement of Infrastructure Capacity of RE - Power Plant Noncommercial Development of energy infrastructure for rural communities, outer islands and border areas Off-grid system: Solar PV, Mini/Micohydro, Wind, Marine, Bioenergy PP, Solar PV Street Lighting, LTSHE Source of Funds: APBN/ Special Allocation Fund (DAK) Legal Basis Presidential Reg. 47 of 2017 on LTSHE MEMR Reg. 33 of 2017 on Procedures for the Provision of LTSHE for Communities Without Access to Electricity MEMR Reg. 3 of 2017 on Operational Guidance of DAK Physical Assignment of Small Scale Energy MEMR Reg. 12 of 2018 on the Implementation of Physical Activity of New Renewable Energy Utilization ebtke.esdm.go.id djebtke 9
10 MEMR Regulation No 50 year of 2017 Renewable Resources Source of energy generated from sustainable energy resources if managed properly, among others: solar PV, wind, hydropower, biomass, biogas, municipal solid waste, geothermal, and ocean energy. Electricity power purchase mechanism LAW Electricity Price Based on regulation direct selection PLTP and PLTSa PLTA, PLTS, PLTB, PLTBm, PLTBg dan PLTA Laut Type of Power Generation PLTS Fotovoltaik PLTB PLTA PLTBm PLTBg PLTSa PLTP PLTA Laut PLTS PLTB PLTBm PLTBG PLTA Laut If regional BPP > the average of national BPP The electricity purchase price is maximum 85% of regional BPP If regional BPP < the average of national BPP The electricity purchase price is based on agreement between parties (B2B) PLTSa PLTP PLTA If Local BPP > Average of National BPP The electricity purchase price is maximum 100% of regional BPP If regional BPP < the average of national BPP the electricity purchase price will be based on agreement between partiesnasional (Include Sumatera, Java and Bali) ebtke.esdm.go.id djebtke_kesdm Lintas 10
11 70 NRE PPA in MW 1.829MW 116MW 1.214,2MW Never been happened years before Hydro 754MW [62%] 70 Contracts 1.214,16 MW Biogas 9,8MW [1%] Biomass 32,5MW [3%] Solar 45MW [4%] Geothermal 86MW [7%] Minihydro 286,8MW [23%] 2 contracts have COD 16 contracts under construction Signing of 70 contracts RE Power Generation FY January 13,5 MW Minihydro Biomass : 10 MW : 3,5MW Minihydro Biogas May 11 MW : 9 MW : 2 MW August 257,6 MW September 291,4 MW Minihydro : 175,8 MW Minihydro : 52,4 MW Biomass : 29 MW Hydro : 239 MW November 640,6 MW ebtke.esdm.go.id Biogas djebtke_kesdm : 7,8 MW Geothermal Lintas EBTKE : Solar : 45 MW Minihydro : 39,6 MW Hydro : 515 MW The Progress of NRE-based Power Plant Contracts ( ) 23 Contracts 14 Contracts 14 Contracts 70 Contracts
12 The Development of Off-Grid Renewable Energy ebtke.esdm.go.id djebtke_kesdm Lintas 12
13 Progress of 2500 Villages Electrification Program Sumatera Electrified: 54 villages Non electrified: 9 villages Sulawesi Electrified: 8 villages Non electrified: 7 villages 47,6 million houses villages houses villages houses villages PLN consumer Non-PLN consumer Non electrified Nusa Tenggara Electrified: 5 villages Non Electrified: 18 villages Kalimantan Electrified : 15 villages Non Electrified : 14 villages Maluku Papua Electrified : 12 villages Non Electrified : villages ebtke.esdm.go.id djebtke
14 MEMR Regulation No. 38/2016 Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Bordered Areas, and Small Island with Population through the Implementation of Small Scale Power Supply ELECTRIFICATION PROGRAM WITH TOTAL CAPACITY UP TO 50 MW IS INTENDED FOR : Undeveloped Villages Remote Areas Villages in Bordered Areas Inhabited Small Islands There are Villages without Electricity The GOI target to electrify villages by 2019 Renewable Energy To Provide Electricity Electrification acceleration program in rural areas by prioritizing New and Renewable Energy based power plant BUSINESS AREA DETERMINATION PROCEDURE TARIFF The Minister of EMR is authorized to determine the business area that has been proposed by Governors. The Minister of EMR appoints business entities that have already had IUPTL The Governors propose business area The Governors offer business area to business entities The Governors issue IUPTL INVESTMENT Based on Governor proposal, MEMR conducts Auction for Business Area Developers. Assignment Head of Local Government can assign BUMD if there is no interested investor Subsidies The GoI calculates the amount of the subsidy to be proposed to the DPR to be validated Non Subsidies with Agreement Tariff (refer to BPP PLN) Tariff will be set by MEMR or Governor Non Subsidies with National tariff Electricity tariff will correspond with PLN tariff ebtke.esdm.go.id djebtke_kesdm Lintas 14
15 Potential for Bioenergy Development in Indonesia ebtke.esdm.go.id djebtke_kesdm Lintas 15 15
16 The Advantages of Bioenergy Uses waste as fuel The feedstocks come from crops (waste), animal or human waste Can be utilized both for electricity and fuel Can be used as based load Can be developed from small to large scale Available throughout the archipelago Overcome environmental issues Minimize organic waste Indonesia has the largest palm oil plantation in the world ebtke.esdm.go.id djebtke_kesdm Lintas 16 16
17 Off Grid - Bioenergy Power Plant Area & Biomass Source Sumatera Palm Oil Industry POME Sugar Cane Industry Paper Industry Off-Grid (MW) Capacity Kalimantan Palm Oil Industry 91 Jawa-Bali Palm Oil Industry Sugar Cane Industry Municipal Waste Sulawesi Palm Oil Industry Sugar Cane Industry Papua Palm Oil Industry 4 TOTAL NATIONAL On Grid Installed Capacity Up to 2017 reached MW OFF GRID CAPACITY FOR BIOENERGY POWER PLANT IS MUCH HIGHER THAN ON GRID USUALLY USED AS CAPTIVE POWER FOR AGRICULTURE OR FORESTRY - BASED INDUSTRIES USING THEIR OWN WASTE AS FEEDSTOCK LOCATED IN RURAL AREA ebtke.esdm.go.id djebtke_kesdm Lintas 17
18 Solar PV Diesel Hybrid Program In 2015, DGNEEC has been built 22 units of Hybrid PLTS in outer and border area in Indonesia, total capacity is 3,220 kwp Purpose: a. To reduce the use of fuel in the diesel b. To reduce greenhouse gas emissions c. To reduce the cost of production of the power plant Solar PV-Diesel Hybrid 350 kwp in Sabang, Aceh Solar PV-Diesel Hybrid 100 kwp in Boven Digoel, Papua ebtke.esdm.go.id djebtke_kesdm Lintas 18
19 Electrifying all Remote and Border Areas in Indonesia Energy Efficient Solar Lamp (LTSHE) LTSHE is suitable for rural homes that are geographically and the distribution of the population is scattered and difficult to reach by PLN network Current condition: There are villages with no electrification, or houses TARGET: Electrifying rural areas which have no access to PLN grid, within 2 years ( ) by distributing LTSHE Installed in 5 provinces in eastern part 5 of Installed in Indonesia 15 province Electrifying houses # EnergiBerkeadilan Electrifying houses ebtke.esdm.go.id djebtke
20 Closing ebtke.esdm.go.id djebtke_kesdm Lintas 20
21 Challenges and Opportunities 1. The development of RE-based power plant will be faster if long-term green fund is available; 2. Foreign technical cooperation needs to be intensified for transfer of technology and human resources development; 3. The opportunity for biofuel utilization is great, especially bioethanol; 4. ESCO implementation is widely opened to increase; 5. Saving energy habit should be promoted. ebtke.esdm.go.id djebtke_kesdm Lintas 21
22 THANK YOU MINISTRY OF ENERGY AND MINERAL RESOURCES Jl. Medan Merdeka Selatan No. 18, Jakarta DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION Jl. Pegangsaan Timur No.1 Menteng, Jakarta ebtke.esdm.go.id djebtke_kesdm Lintas 22
Dr. Hasrul Laksmana Azahari
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