SOLAR PV PROMOTION PROGRAM IN INDONESIA
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1 SOLAR PV PROMOTION PROGRAM IN INDONESIA Presented by: M. Sjachdirin Head of Sub Directorat of Technical and Environment al Various New Energi and Renewable Energy DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES, REPUBLIC OF INDONESIA Jakarta, 30 April 2012
2 ENERGY CONDITION 2011 National Energy Mix Total in million BOE Energy Elasticity = 1.60 Share of Non Fossil Energy < 5% 1. Public access to energy is still limited: a. Electrification ratio in 2011 was 72.95% (27,05% of households not yet electrified); b. Development of energy infrastructure (rural / remote areas and outer islands generally do not get access to energy); 2. Growth in energy consumption an average of 7% per year, yet balanced with enough energy supply; 3. Dependence on fossil energy is still high (95.21%), reserves are more limited; 4. Utilization of renewable energy and implementation of Energy Conservation is not optimal; 5. Linkage to environmental issues: a. Mitigation of climate change; b. National commitment to reducing emissions 26% by 2020;
3 RENEWABLE ENERGY DEVELOPMENT NO NON FOSSIL ENERGY RESOURCES INSTALLED CAPACITY RATIO (%) = 4/3 1 Hydro 75,670 MW 5,771 MW Geothermal 28,543 MW 1,228 MW Mini/Micro Hydro MW MW Biomass 49,810 MW 1, MW Solar Energy 4.80 kwh/m 2 /day 20 MW - 6 Wind Energy 3 6 m/s 1.87 MW -
4 ENERGY POLICY DIRECTION PRESIDENTIAL DECREE No. 5/2006 VISION 25/25 Current Condition NRE, 4.79% Oil, 46.93% Natural Gas, 21.90% Coal, 26,38% Gas 30% NRE 17% Oil 20% Coal 33% NRE 25% Gas 23% Coal 22% Oil 30% Source: *Estimation 2010, DEN , **BAU EBTKE
5 MAIN POLICIES 1. Energy Conservation is to improve efficiency in energy utilization from up-stream up to down-stream (Demand Side) i.e. industrial, transportation, household and commercial sector 2. Energy Diversification is to increase new renewable energy share in national energy mix (Supply Side). i.e. New Energy Renewable Energy a. Liquefied Coal, b. Coal Bed Methane, a. b. Geothermal Bioenergy c. Gasified Coal, d. Nuclear, e. Hydrogen. c. Hydro d. Solar e. Wind f. Ocean
6 AGENDA ON NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MAIN AGENDA 1. Harmonizing regulations 2. Updating Master Plans on Energy Diversification and Energy Conservation 3. Improvement of efficiency on energy utilization 4. Development of new and renewable energy 5. Development and implementation of clean energy technology 6. Increasing local content and supporting industry 7. Increasing people in participation on Energy Self-Sufficient Village SUPPORTING AGENDA 1. Enhancing research and development 2. Enhancing training and education
7 DEVELOPMENT STRATEGY STRATEGY IN THE ENERGY SUPPLY SIDE : applying the mandatory provision of New and Renewable Energy increasing the use of New and Renewable Energy use of cleaner fuels (fuel switching) in providing energy STRATEGY IN THE SIDE OF ENERGY UTILIZATION (DEMAND SIDE) : applying the energy utilization efficiency commitment use of cleaner fuels (fuel switching) in energy utilization applying the principles of energy saving use of clean and efficient energy technologies develop the attitude of life-saving energy
8 NEW AND RENEWABLE ENERGY POLICY Regulation 1. Law No. 30/2007 on Energy 2. Law No. 30/2009 on Electricity Description Provision and utilization of new & renewable energy should be increased by the government and local government in accordance to their authorities. Provision and utilization of new renewable energy can get incentives from government/local government for certain period until it reaches economical development stage. Putting priority to utilize locally available energy resources for electricity generation 3. Law No. 27/2003 on Geothermal To regulate the management and development of geothermal energy sources for direct and indirect utilization 8
9 Regulation 4. Minister of Energy Regulation No. 02/2011 on Electricity Purchasing Price from Geothermal 5. Minister of Energy Regulation No. 4/2012 on Small and Medium Scale Power Generation using Renewable Energy Description Feed in Tariff (FIT) for the purchasing price of electricity generated from Geothermal FIT for the price of electricity generated from Renewable Energy FIT for the price of electricity generated from Biomass and Biogas FIT for the price of electricity generated from Domestic Waste using zero waste technology FIT for the price of electricity generated from Domestic Waste using sanitary landfill technology 6. Minister of Finance Regulation No. 24/PMK.011/ 2010 on Renewable Energy Incentives Tax facility for renewable energy in the form of Income Tax, VAT, Import Duty and Tax Holiday, Tax Exemption etc. 9
10 HISTORICAL DEVELOPMENT OF SOLAR ENERGY IN INDONESIA The Indonesian history of solar energy utilization with the photovoltaic technology has been introduced and developed since the end of 1970 s, especially to meet the electricity demand in rural or remote area
11 PV PROGRAM Consist of : 1. Rural PV: increasing rural community accessibility to electricity; targeting electricity demand in remote area, small island, by Solar Home System and Centralized PV System (off grid) 2. Urban PV: targeting middle and high class household, real estate, office and commercial buildings, hotel and resort, industry and others for own used (off grid and on grid) 3. On grid PV: offering opportunity to Independent Power Producer to develop Solar Power Plant and sell the electricity to PLN.
12 RURAL PV OBJECTIVES AND SCHEMES Objectives: 1. To increase community accessibility to electricity, and it is directed to accelerate the rural electrification ratio in order to achieve the ratio of 95% in 2025, 2. As a prime mover in rural community economic development in a sustainable path. Schemes: 1. Communal PV system (Solar Home System) for a scattered household location, 2. Centralized PV system, targeted to a more dense location.
13 URBAN PV OBJECTIVES AND OPTIONS Objectives: 1. To help the user/consumer to provide electricity on their own and to decrease the dependency of electricity supply from PLN, especially during the peak load 2. To introduce the utilization of renewable alternative energy, which is clean and environmental-friendly Options: 1. Off-grid: disconnected from PLN grid 2. On-grid: connected to the PLN grid
14 INDEPENDENT POWER PRODUCER OBJECTIVES AND OPTIONS Objectives: 1. To provide opportunity to the private company for producing electricity and selling to PLN (The Electricity State Owned Company), 2. To accelarate the development of renewable energy, reducing the utilization of fossil energy. Options: 1. On-grid : connected to local grid (isolated small island) 2. On-grid : connected to the national grid (inter islands)
15 SOLAR PV DEVELOPMENT Schemes YEAR Solar Home System (SHS) 2,390 units (119.5 kwp) 32,555 units (1,555 kwp) 40,598 units (2,029 kwp) 37,270 units (1,864 kwp) 77,433 units (3,871 kwp) Centralized PV System 6 units (21.8 kwp) 5 units (102 kwp) 12 units (240 kwp) Implemented by MEMR
16 CONCLUSIONS The potential of solar energy in Indonesia is abundant although until now the potential has not been widely utilized. Indonesian government has designated the development of solar energy to fulfill energy needs for areas in the eastern part of Indonesia. The potential of Indonesia s solar energy areas in the eastern part of Indonesia have not yet been mapped, therefore, there are a lot of opportunities for Investors to develop study of the areas suitable for development of solar energy. The study can help Indonesian Government in formulating the policy and implementing the programs as well as attracting investors in the future green energy projects.
17 DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta Phone/Fax :
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