THE IMPACT OF THE NEW LAW OF REPUBLIC OF INDONESIA NUMBER 20 OF 2002 TO THE ENERGY PLANNING IN INDONESIA

Transcription

1 THE IMPACT OF THE NEW LAW OF REPUBLIC OF INDONESIA NUMBER 20 OF 2002 TO THE ENERGY PLANNING IN INDONESIA By : Susy M. Simarangkir Jln. Daksinapati Barat I/3, Rawamangun, Jakarta 13220, Indonesia sms_sierra@hotmail.com

2 OBJECTIVES 1. Information of energy potential in Indonesia 2. Information of the law of RI no. 20/2002, concerning electricity : - Main Issues - Impacts to the Energy Planning

3 INDONESIA at a Glance General Information : 5 major islands and about 30 smaller groups (17,508 islands) 1.9 million sq. km land area & 7.9 million sq. km sea area (crossroad between the Pacific and the Indian ocean, and two continents, Asia and Australia) Consist of mountains (400 volcanoes), rivers, lakes, 6000 floras and thousands faunas Population : ± 210 millions (65% are in Java and 35% are in other islands) GDP growth ( ) : 3-5% Energy consumption : 3 BOE/capita Source : BI, 2004; BPS, 2003; UN,2002 Photo :

4 Energy Potential in Indonesia CONVENTIONAL Energy Type Proven Potential Total Production Capacity/a Life Time (a) Crude Oil 4, bbl 4, bbl 9, bbl bbl 10 Natural Gas 95 TSCF 75 TSCF 170 TSCF 2.9 TSCF 32 Coal ton ton ton 10 8 ton 65 Main Source Location : Crude Oil Central Sumatera, West Java & Kalimantan Natural Gas Natuna, Kalimantan, Sumatera, &Java Coal Sumatera, & Kalimantan Source : DJLPE, 2002; UI, 2002 Photo : State Ministry of Environment

5 Production of Conventional Energies Crude Oil & Condensate ( ) Natural Gas ( ) 600 3,500,000, ,000,000,000 Million Barrel MSCF 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000, ,000, Production Export Import Production Export Million Tons Coal ( ) Export Ratio : Crude Oil & Condensate = 44-48% Natural Gas = 56-60% Coal = 75-77% Subsidy of Petroleum Product Production Export April 2004 : Oil import > Oil export (± 90,000 bbl/d) Source : UI, 2002; Kompas, 2004

6 Energy Potential in Indonesia NON CONVENTIONAL Energy Type Potential Specific Power Installed Capacity (MW) Percentage (%) Hydro BOE GW Geothermal BOE GW Mini/ Microhydro MW Biomass GW Solar Energy (PV) Wind Energy 4.8 kwh/m 2 / day 3-6 m/s 1203 TW 9287 MW Biogas MW Source : DJLPE, 2002; KUBE, 1998 Photo : State Ministry of Environment Other type : peat, ocean, hydrogen, MHD, nuclear, etc.

7 Electricity Supply Capacity of Electricity Production : State-owned Electricity Company (PLN) : 22,732 MW Independent Power Producers (IPP) : 1,589 MW (Captive Power) : 15,215 MW Power Plant uses : - Fossil Fuel : % * Coal : % * LNG : % * Oil : % * Others : 1.83 % -Renewable Energy : % * Hydro : % * Geothermal : 3.13 % * Others : 0.5 % Percentage of Power Plant s Capacity Location : - In Java : % - Outside Java : % Source : Energy Magazine, 02/2004 Photo : State Ministry of Environment 45% of population : no access to electricity

8 Deficit PLN Electricity & RE Area (2000) Power shortage (Total : 1,300 MVA): > x > Total Potential (in island) : - Geothermal (GW): > x > Microhydro (MW): > x > Biomass (GW): > x > Biogas (MW): > x > Wind (m/s( m/s): 2 > x > 4 2 > x > 5 2 > x > 6 - Solar (kwh/m2): 2.5 > x > > x > > x > 6 Source : UI, 2002; BPPT, 2002

9 Electrical Generation Cost Type of PLN Power Plant Cost (cent US$/kWh) Type of other non fossil-fuels Cost (cent US$/kWh) Hydro 0.4 Solar electricity (PV) 15 Geothermal 3.28 Solar thermal 6 Gas 4.05 Wind energy 4 Gas-Steam 2.56 Biomass 5.2 Steam 1.37 Diesel 2.9 Can non fossil fuels compete with fossil fuel? Source : UI, 2002; PLN 2000 Photo : UNEPTIE, 2003

10 Electricity Issues Satisfy Electrical Need : -Distributed in fair manner, efficient, and competitive -Further improve state capacity in electricity supply Improve the Sustainable & Environment-Oriented Development LAW OF THE RI NUMBER 20/2002, CONCERNING ELECTRICITY

11 Law No. 20/2002 : Main Issues Article 4 : Primary Energy for Power Plant Prioritized to the local energy sources & renewable energy Article 5 : Decentralized of the Electricity Master Plant Regional Government (the Regent/Mayor, the Governor) shall prepare a Regional Electricity General Master Plan Article 15 : Competition Region - electricity selling cost = economic cost - competition of primary energies - the Electricity Market Supervisory Agency has been established (1 year after law signed on ) - Starting from Power Plant and then customers (not for transmission and distribution line) Photo : GTZ-MHPP, 2004

12 Law No. 20/2002 : Main Issues Article 8-31 : New Structure Electricity Organization in the Competition Region - Electricity Market Supervisory Agency - Electricity Generation Ventures - Electricity Transmission Venture (X) - Electricity Distribution Venture (X) - Electricity Sales Agent - Electricity Sales Enterprises - Electricity Market Operator - Electricity System Operator

13 Law No. 20/2002 Impacts to Energy Planning 1. Bargaining Power in Regional Government 2. Liberalized Market (In the end of 2007, it has to be established the competition region) : - eliminate petroleum subsidy - reduce additional cost (tax, non tax, etc.) of the renewable energy - cost transparency - market will control the energy price level 3. Incentive for RE - appropriate RE technology - externality cost (???) 4. R&D - further exploration of fossil fuels - collaboration research to provide information and proper technology - infrastructure

14 Law No. 20/2002 Open Questions Sustainable Energy System : a. Identification of local capacity: Energy resources, electricity demand pattern (present vs future), electricity Grid Network, socio-economic culture, politic, community b. Identification of proper energy conservation and renewable energy program. c. Community commitment d. Realistic energy planning (SMART)

15 Conclusion 1. UU no. 20/2002 : liberalized of the electricity system 2. UU no. 20/2002 : decentralized of the electricity system 3. UU no 20/2002 : need the specific target and tariff 4. UU no. 20/2002 : need the specific financial mechanism 5. UU no. 20/2002 : integration to the other energy law 6. UU no. 20/2002 : (-)( ) electrification in rural/remote area 7. URGENTLY need : UMBRELLA law for energy sector 8. URGENTLY need : SMART Energy Planning

16 Thank You