Existing Sustainable (Renewable) Energy System in Indonesia

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1 Existing Sustainable (Renewable) Energy System in Indonesia Hermawan and Sudarto P. Hadi * Diponegoro University, Semarang, Indonesia Abstract: Renewable energy systems can provide clean, reliable, secure and competitive energy products and services to help meet the rapidly increasing global energy demand. This paper outlines The National Energy Policy, The National Energy Policy on Renewable Energy, and the existing sustainable (renewable) energy system in Indonesia have been presented. It has been shown that Indonesia has a lot the potential renewable energy but the share of this energy to the total energy mix is very low. Keywords: Renewable Energy, Policy, Existing, Indonesia 1. INTRODUCTION 1. National energy policy [1] The National Energy Policy is issued with the main objective to create the sustainable energy development. The government of Indonesia has formulated the general energy policy since It was motivated by the reverse oil shock that started in the early 1980 s. The first energy policy was established under presidential decree in 1982 and the policy be periodically revised. The last revise was in 2003, which the so called National Energy Policy with vision to guarantee the sustainable energy supply to support national interest. The main missions of the policy are guaranteeing energy supply to meet national interests; increasing the added values of energy sources; managing sustainable sources of energy in an ethical and sustainable manner; focusing of attention to conservation of environmental functions; providing affordable energy for low income people and less developed area; and developing domestic capacities. The main policy measures of National Energy Policy in the supply side are energy intensification abd energy conservation (production optimization). In the demand side the policy consist of energy diversification and energy efficiency. The other policies are : - increasing energy price gradually toward economic price - protecting the environment : promote sustainable development and internalize externality. Energy Intensification The principle of energy intensification is to intensify exploration activities through continuing surveys and exploration for energy, either from domestic or foreign sources, with the aim of increasing energy reserves, in particular oil and natural gas and coal. The search for energy sources will be focused in areas that had not been surveyed, while those areas with some indications will need efforts to up rate their reserve status to more certainly. Energy Diversification Energy diversification is directed towards diversifying the utilization of energy, be it renewable or non-renewable, in the framework of economic optimization of energy supply and in order to decrease the rate of depletion of hydrocarbon resources so that the maximum net benefit is obtained while sustainable development is implemented. Energy Conservation The principle of conservation will be applied in all stages of utilization, beginning with energy use at its source up to its end-use to ensure the fulfillment of the future generation s needs. The conservation effort will be applied on both the upstream and the downstream sides. Upstream energy conservation will be implemented through increasing the efficiency of energy source extraction, while downstream conservation will be implemented through increasing efficiency of energy end-use in all sectors. In supporting those policies, the following actions are undertaken : - Developing energy infrastructure to increase public acces to commercial energy - Providing subsidy to the poor members of society - Partnership between Government and private sector - Community development - Promoting research and development as well as training and education - Empowering coordination function 2. National energy policy on renewable energy [1, 2] The utilization of renewable energy resources becomes more strategic when recognizing the limited nature of conventional energy and the global concern on environmental conservation. In line with its energy policy that calls for the reduction of the country s dependency on oil by diversifying its energy supplies, several policies, laws and regulations were enacted by the Indonesian Government in support of renewable energy as summarized in Table 1. Corresponding author: pr1undip@telkom.net 1

2 Table 1 Energy Policies, Laws and Regulation in Indonesia Policy/Law/Regulation Purpose Features Law No. 6/1994 issued June Launching of the Green Addresses the concern for environmental 2002 Energy Program that intends to issues of the national energy realize the RE supply and development and utilization. It prescribes utilization to help secure the sustainability of the long-term national development the optimal utilization of RE as well as the efficient use of energy and clean energy technologies as the major scope of activities. Ministerial Decree, Kep. Obligating the key players in Requires the utility PLN to purchase Men. No.1122/ K/30/ the electricity sector to utilize electricity generated from renewable MEM/2002, or the PSK small hydropower as part of energy resources at a price level of 0.8 of TERSEBAR their portfolio HPP (energy production cost) at medium voltage connection, or 0.6 of HPP at low voltage connection. Government Regulation No. Increasing the role of local Optimizes utilization of local renewable 3/2005 government, cooperatives, energy sources. private companies, community Gives license to local government, organizations and individual on electricity supply. cooperatives, private companies, community organizations, and individual on electricity supply UU No. 22/1999 or the Institutionalization of the Provides policy in areas that have not Local Autonomy Law shifting of governance been introduced to electricity market authority to local government competition, where the Head of District mandating greater autonomy and responsibility to local government to manage its local electricity supply system (Bupati) or the Governor can issue permit to the local independent power producer. In turn, the local government also bears the responsibility to provide funds for development of electricity supply as social infrastructure for the poor, for underdeveloped areas, as well as for rural and remote areas. 3. The national energy policy target [3] The Current National (Primary) Energy Mix, the National (Primary) Energy of 2025 without Optimization and the target of National Energy Mix of 2025 are shown in Fig.1, Fig.2, ang Fig.3. Hydro Power, 3.11% Geothermal, 1.32% Gas, 28.57% Oil, 51.66% Coal, 15.34% Fig.1 The Current National (Primary) Energy Mix 2

3 Hydro Power, 1.9% Geothermal, 1.1% Mini/micro hydro, 0.1% Gas, 20.6% Oil, 41.7% Coal, 34.6% Fig. 2 The National (Primary) Energy Mix of 2025 without Optimization Gas, 30% Oil, 20% Renewable Energy, 17% Biofuel, 5% Geothermal,5% Biomass, Nuclear, Hydro Power, Solar Energy, Wind Power, 5% Coal, 33% 2% Coal Liquefaction Fig. 3 The Target of National (Primary) Energy Mix of Existing sustainable energy system in Indonesia [1, 3, 4] The potential of Indonesia s renewable energy is shown in Table 1 [7]. Surveys have identified 217 geothermal prospects, 70 of them may provide energy of about 27 GW. So far, the installed geothermal plant is only 800 MW. The Government has enacted the Geothermal Law No. 27 Year 2003 to promote the development of geothermal. The potential of hydropower (large, mini and micro) is theoretically about 75 GW, spread-out in more than 1,300 locations. The utilization of large-scale hydro power is 4.3 GW (just about 5.6 percent of the country s potential), while utilization of mini-micro-hydro is about 84 MW (out of 500 MW potentials). The Ministry of Energy & Mineral Resources has established a Mini-Micro Hydro Clearing House to provide information and networking on mini-micro power development. Table 2 Indonesia s Potential of Renewable Energy Type Potential Installed Capacity Hydro Power GW 4,200 MW Geothermal 27 GW 807 MW Mini/micro-hydro 500 MW 84 MW Biomass GW 445 MW Solar Energy 4.8 kwh/m2-day 8 MW Wind Energy 3-6 m/sec 0.6 MW 4.1 Wind energy Commercial wind energy is one of the most economical sources of new electricity available today. Wind turbines can be set up quickly and cheaply compared with building new coal-fired generating stations or hydroelectric facilities. Modern wind generating equipment is efficient, highly reliable, and becoming cheaper to purchase. The environmental impact of large wind turbines is negligible compared with an open pit coal mine or a reservoir, and during their operation produce no air pollution. Because of these factors, wind energy is recognized as the world s fastest-growing new energy source. The potential of wind energy in Indonesia is relatively low with the average of wind speed around 3-6 m/second. However, in certain areas, especially in the Eastern Regions of Indonesia, wind velocity is more than 5 m/second. Around 0,6 MW has been installed and operated for lighting, water pumping and battery charging. 4.2 Solar energy To utilize such potential of solar energy, two technologies have been applied, namely thermal solar energy and photovoltaic solar 3

4 energy. Photovoltaic (PV) systems have emerged to be the cost effective and a suitable approach for rural electrification in the rural areas of the developing countries. Many PV systems have been installed in different parts of Indonesia during the last decade. Road Map of solar energy development is shown in Fig.4. Fig. 4 Road map of solar energy development 4.3 Hydro Power The oldest machines for capturing the energy of moving water were waterwheels. In the days before electricity, it was common to use water wheels to provide the power for mills that ground grain or cut lumber. To start the mill, the miller simply opened a gate to let the water fl ow over the top of the wheel. The water wheel was connected to a massive millstone or metal saw blade through a system of gears. Water for the wheel usually came from a small dam and reservoir, called the millpond. Hydroelectric facilities often depend on a dam to raise the level of the water in the reservoir. Water from this reservoir is allowed to fall through huge pipes to a building that houses water-driven turbines. Pressure from the falling water spins the turbines at high speed. The turbines are connected to huge generators that make electricity as they turn. This electricity is carried to cities and towns that may be located hundreds or even thousands of kilometers a way. Utilization of hydropower on a large-scale for power plants until the year 2002 reached 4,208 MW or only around 5.6 % of the existing potential. However, hydropower potential in Java has been optimally developed, namely around 2,389 MW or 53% of the total existing potential. Whereas the potential of mini hydro and micro hydro is around 500 MW; 84 MW of which has been utilized to support rural electrification. To provide information related on mini-micro hydro development as well as networking among all stakeholders, Ministry of Energy and Mineral Resources has established the Mini-Micro Hydro Clearing House. 4.4 Geothermal People have known since ancient times that the Earth s interior is very hot. The temperature of the Earth s core is estimated to be between 3000 and 5000o C (scientists are still not sure what the exact temperature is). This heat is generated by the slow breakdown of radioactive elements, and by the immense gravitational pressures acting on the rocks and minerals of the Earth s interior. Temperatures in excess of 500o C can be found in the Earth s crust just a few thousand metres below the surface, but geothermal heat right at the surface of the land is barely detectable. Geological surveys throughout the Indonesian region have identified 217 geothermal locations. Exploration indicated that 170 of geothermal resources is high temperature providing the country with a potential of geothermal energy about 27,189 MW. The current installed capacity of Geothermal is about 807 MW. Road Map of Geothermal energy development is shown Fig.5. Fig. 5 Road map of geothermal energy development 4.5 Biomass Bioenergy is energy stored in materials made with the help of living things. An everyday example of bioenergy is wood heat. Wood is produced by growing trees, and contains highly flammable substances. Wood heat is probably humanity s oldest energy source. Indonesia has a large potential of biomass energy. Biomass energy has been utilized for a long time and is one of the oldest forms of energy with a rather important role, especially in the rural areas. It is estimated that ± 35% of the total national energy consumption comes from biomass. Energy yielded has been used for various purposes, among other things for household needs (cooking and home industry), rice mill, dryer for agricultural products and timber industry, power plant in agro and wood industries. Biomass, particularly in form of fuel wood and agriculture waste with its potential is estimated equivalent to 49,81 GW. This potential concentrates particularly in sugar, palm oil and wood industries. From total potential only around 445 MW has been installed and operated in waste and sugar industries. 4

5 5. CONCLUSION The National Energy Policy, The National Energy Policy on Renewable Energy, and the existing sustainable (renewable) energy system in Indonesia have been presented. It has been shown that Indonesia has a lot the potential renewable energy but the share of this energy to the total energy mix is very low. Some efforts should be taken to increase the use of renewable energy such as researching in this energy 6. REFERENCES [1] Director General for Electricity and Energy Utilization Ministry of Energy and Mineral Resources, Republic of Indonesia, Indonesian Government Policy on Renewable Energy, Proceeding of The World Renewable Energy Regional Congress & Exhibition (WRERCE) 2005, Jakarta. [2] Machfudh and Andhika Prastawa, IMIDAP: The Integrated Microhydro Development and Application Project, Proceeding of the World Renewable Energy Regional Congress & Exhibition (WRERCE) 2005, Jakarta. [3] Director General for Electricity and Energy Utilization Ministry of Energy and Mineral Resources, Republic of Indonesia, Blueprint Pengelolaan Energi Nasional [4] Hanan Nugroho, Financing Renewable Energy Utilization in Indonesia: Notes, Proceeding of the World Renewable Energy Regional Congress & Exhibition (WRERCE) 2005, Jakarta. 5