Development of Renewable Energy in the Insular context of Indonesia. Refi Kunaefi

Transcription

1 Development of Renewable Energy in the Insular context of Indonesia Refi Kunaefi For Petro Gas Days, 2017

2 About Akuo Energy IPP Renewables Operating in 14 countries, 960 MW in Operation/under construction Biggest PV hybrid project in Indonesia under construction 2.5 B$ investment Development of Renewable Energy in the Insular context of Indonesia March 16 st

3 Challenges in Providing Electricity in Islands 1. Reducing the dependency to fossil fuels The request for alternative solutions to dirty yet expensive electricity on island s is anavoidable. The sites access difficulty & the huge price of imported oil make the electrical generation unaffordable, which leads to government subsidy. 2. Improving Weak & Small Electrical Networks On a small territory/island, the grid is considered as noninterconnected and there is actually no supply-demand proliferation which greatly reduces the balance between production and consumption 3. Producing stable and warranted electricity Moreover, the low production sites density implies a power support loss has directly a huge impact on the entire grid balance / stability. Development of Renewable Energy in the Insular context of Indonesia March 16 st

4 Challenges in Providing Electricity in Islands 4. Finding Rare and Competed Lands 5. Preserving Farm Lands Development of Renewable Energy in the Insular context of Indonesia March 16 st

5 Island Solutions: Hybrid Power Plant Energy Management System Distribution Line To community / end user Biomass / Genset To balance the supply (when needed) Inverter / Battery To store the Electricity PV Module Generate Electricity Development of Renewable Energy in the Insular context of Indonesia March 16 st

6 Island Solutions: PV with Agrinergie Production of Clean Electricity Organic Farming Activity underneath: Double use of Land / Space. Development of Renewable Energy in the Insular context of Indonesia March 16 st

7 Island Solutions: PV with Aquanergie Production of Clean Electricity Aquanergy: Shared-space for fish farming activity + Clean energy production Benefits: Increase fish production by 25% thanks to: (i) cooler water temperature and (ii) avoided birds attacks Fishery Activity underneath Development of Renewable Energy in the Insular context of Indonesia March 16 st

8 Island Solutions: Hybrid Solar PV Total installed capacity (Nov 2016) 54,000 MW; 12.7% is Renewables Additional capacity in 5 yrs (2019): 35,000 MW (35 GW Program); Per capita consumption: 800 kwh/year More than 30 million people have no access to electricity Solar PV installed capacity: less than 1% of national installed capacity, despite a massive resources availability. MoE Regulation 19/2016 : scale up in solar energy deployment to 5 GW by Yet, its become uncertain with the issuance of MoE Regulation No. 12/2017. The most possible and feasible technology to electrify all off-grid locations all around Indonesia ~ 12k remote villages with no electricity access at the moment. Development of Renewable Energy in the Insular context of Indonesia March 16 st

9 How the Private could Participate? Clear & consistent regulations and legal framework for the Development of Renewables / Hybrid; to accommodante the need of Island (as the Government, by Permen 12/2017 pushes the RE dev. to be outside Java) Bankable Power Purchase Agreement (PPA) with PLN / Ad-hoc agency to be created by ESDM, to in particular manage the renewable electricity supply / business. Discussion on tariff + Indexation, force majeure, Take Or Pay, Termination, Should the project to be executed under a Tender process, there should be Transparent & consistent tender process held by PLN / ESDM Avoid excessif development spending by IPP in the same regions/locations. Development of Renewable Energy in the Insular context of Indonesia March 16 st

10 Island Case: La Reunion Reunion Island: Indian ocean, ½ size of Lombok, Electricity consumption ~3 MWh/person.pa ( 3x average s Indonesian consumption) By 2013, Total installed capacity is 877 MW, with 40% Renewable ratio, with peak load of 450 MW. Target renewable to be 100% by Solar PV total installed capacity is 160 MWp: i. 18% from the total Island s installed capacity ii. 35% from the Island s Peak load iii. Contribute to 8% in the annual energy mix of the Island. Source: Processed from EDF-SEI, 2014 Development of Renewable Energy in the Insular context of Indonesia March 16 st

11 Island Case: Nias Power Supply in Nias 1. Electrification Ratio: ~41% % Diesel Power Plants Potential Solar PV Deployment in Nias Potential investment capacity: > 40 MW (PV+Storage+Biomass, Island s connected) Investment needed: ~120 M$ (1.5 Triliun IDR), to be made by Private Sector / IPP (under PPA with PLN). Energy generation: 56,000 MWh/year Annual government s/pln saving on diesel: 1.5 M$ (20 Milyar IDR) per year, with the current oil price. Development of Renewable Energy in the Insular context of Indonesia March 16 st

12 Project under Implementation: Berau HYBRID PROJECT (Berau, East Kalimantan): PV-Storage/Battery- Genset-Micro hydro (~1.5 MW) 24 x 7 electricity supply Tariff on par with PLN tariff Viability Gap Funding by Donor Managed by SPV owned by BUMDes (village-owned company) +1,700 Beneficiaries Avoided +1,200 Ton CO2 per year Development of Renewable Energy in the Insular context of Indonesia March 16 st

13 Hybrid Power Plant: Where To Deploy With more than 17,000 Islands, abundantly solar energy available in one hand and high dependency on imported diesel fuel for Island s power generation on the other hand, Indonesia is definitely need to deploy large scale Hybrid solar PV projects for Islands. For the current 35,000 MW program, considering the Nusa Tenggara & Maluku region only, there is an opportunity to build ~200 MWp of PV plants (equivalent to ~500 M$ investment) to be integrated with the ~930 MW power plants to be built in the region. Such investment could actually be done by Private sector should the Government provide the investment s environment as mentioned earlier. Development of Renewable Energy in the Insular context of Indonesia March 16 st

14 Conclusion Indonesia, with its islands / Remote areas has a specific conditions/challenges for satisfying its energy needs: unavailability of fossil fuel, logistical constraints, low density population; Therefore, the most suitable solution for Islands are: off-grid / mini grid which use the locally available renewable resources; Among such resources, Solar/Sun is available everywhere which make it the most feasible technology to be implemented; Private sector could invest in Islands/Remote area provided that the Government support it by providing: Consistent Legal framework, and Bankable Power Purchase Agreement, either with PLN or Ad-hoc agency to be created by ESDM; Development of Renewable Energy in the Insular context of Indonesia March 16 st