DEVELOPMENT OF DRAFT- NATIONAL ENERGY POLICY SECRETARIATE GENERAL OF NATIONAL ENERGY BOARD

Transcription

1 DEVELOPMENT OF DRAFT- NATIONAL ENERGY POLICY SECRETARIATE GENERAL OF NATIONAL ENERGY BOARD Jakarta, 3 rd December

2 CONTENT OF EXPLANATION 1. JOBS OF THE NATIONAL ENERGY BOARD 2. MECHANISM FOR SPECIFICATION OF THE NATIONAL ENERGY POLICY 3. CURRENT STATUS OF KEN DRAFT 4. DIRECTION OF NATIONAL ENERGY POLICY (In the perspective of energy resistance for sustainable economy) 5. CONCLUSION 1

3 Jobs of National Energy Board (DEN) (Article 12 of Law 30 / 2007) 1. To Prepare and Formulate the National Energy Policy (KEN) 2. To Specify the National Energy General Plan (RUEN) 3. To Decide the Measures for Coping with Energy Crisis and Emergency 4. To Conduct Supervision of Energy Policy Implementation 2

4 MECHANISM FOR SPECIFICATION OF R-KEN INTO KEN FORMULATION OF RKEN DRAFT (By AUPK and AUP) KEN DRAFT DISCUSSED IN MEMBERS SESSION SPECIFICATION OF DRAFT OF KEN INTO R-KEN DISCUSSED IN THE PLENARY SESSION Y/N NO Y THE GOVERNMENT PRESENTS R-KEN DRAFT TO DPR FOR OBTAINING APPROVAL KEN DRAFT IS SPECIFIED INTO KEN BY THE GOVERNMENT 3

5 BACKGROUND People s low access to energy High Growth of energy requirement Low guarantee of energy supply Declining reserves of fossil energy Capacities of research & development, industry & infrastructures are still not optimal EBT utilization is still not optimal Buffer reserves are not available yet Kondisi Energi Price is still not economically appropriate Fossil energy still as export commodity Inefficient management, low efforts of environment conservation Condition and preservation of world geopolitics and global environment issue National Energy Policy National Energy Resistance

6 STRATEGIC INSTITUTIONS AND ASPECTS IN R-KEN FORMULATION Government: - Ministry - Regional Government Wantimpres National Innovation Committee BUMN/Other Institutions University Association/NGO International Energy Institutions/Representatives of Friendly Nations NATIONAL ENERGY POLICY RPJPN Economic Affairs Regional Autonomy Social Culture Transportation Infrastructure Industry Layout and Area Agriculture Forestry Research, Development & Technology Environment 5

7 STATUS of KEN DRAFT a. R-KEN formulation has been prepared by the Board Members (AUP and Members of Stakeholder Elements); b. The 1 st Plenary Session of the National Energy Board was organized on 7 th March 2012, directed by the President of RI as Chairman of DEN and attended by DEN Members (7 Ministers, 6 Stakeholder Elements, and Coordinating Ministers as invited persons), with the results of: Direction of President on R-KEN Responses of Coordinating Ministers on R-KEN Explanation of Ministers as Members of DEN on R-KEN c. As the follow-up of the 1 st Plenary Session, R-KEN has been improved by observing the President s direction and the ministers responses; d. R-KEN was agreed by all DEN members (AUP and AUPK) in the 8 th Members Session on 28 th May 2012, and further the 2 nd Plenary Session will be organized to ratify R-KEN to be presented to DPR-RI; e. Further, R-KEN will be discussed by Panja of Committee VII DPR-RI and for obtaining the approval of DPR-RI; f. R-KEN is specified by the Government to become KEN after approval of DPR-RI.

8 KEN DRAFT DIRECTION OF NATIONAL ENERGY POLICY 7

9 KEN DRAFT: OBJECTIVE OF NATIONAL ENERGY POLICY Objective of national energy policy: to materialize energy resistance and independence in order to support sustainable national development, by: a. Change of paradigm in energy management; b. Independence in energy management; c. Securing energy availability domestically; d. Optimization of energy resources management; e. Efficiency of energy utilization; f. Increasing energy access; g. Developing the capacity and independence in energy technology and industry; h. Creating employment opportunity; i. Preserving environment functions.

10 ASSUMPTION OF ECONOMY AND POPULATION Populasi Population Uraian Description Indonesia Juta Pertumbuhan Average Growth Rata-rata % 1,5 1,0 0,9 0,8 0,7 0,7 0,3 World Population (Shelf Scenario) GDP (Gross Domestic Income) Populasi Dunia [Skenario Shell] Juta GDP [Pendapatan Domestik Bruto] Nominal GDP Satuan Unit Tahun Projection Proyeksi Year GDP Nominal miliar USD Per Per Kapita Capita USD Pertumbuhan Average Growth Rata-rata % 6,6 13,4 12,6 12,0 9,8 6,7 4,5 Population based on projection of UI s demographic institution Economic growth aligned with MP3EI Note: Academic Manuscript prepared in

11 KEN DRAFT: TARGETS OF REQUIREMENT SUPPLY OF ENERGY and ELECTRICITY until 2050 TARGET UNIT Supply of Primary Energy MTOE Consumption of Primary Energy per Capita Supply of Power Plant Capacity Consumption of electricity per capita TOE 0,9 1,1 1,4 3,2 GW KWh Energy Elasticity < 1 (in 2025) Electricity Ratio close to 100% (in 2020)

12 Oil 49,7 KEN DRAFT: TARGETS OF ENERGY MIX until Gas 20,1 Coal 24,5 NRE 5,7 % Oil Gas Coal EBT 40 Oil 25 Gas 20 NRE 25 Coal 30 (%) 2030 Oil 19,4 Gas 18,8 NRE 30,9 Coal Oil 20 Gas 15 NRE Coal 25 Note: RE: hydro, geothermal, biomas, waste, biofuel, solar, sea, and wind NE: nuclear, hydrogen, CBM, coal liquefaction, and coal gasification

13 KEN DRAFT: DIRECTION OF NATIONAL ENERGY POLICY 1. Energy Availability 2. Priority of Energy Development 3. Utilization of National Energy Resources 4. National Energy Reserves 5. Conservation and diversification 6. Environment and Safety 7. Price, Subsidy and Incentive 8. Energy Infrastructure and Industry 9. Energy Research and Development 10. Institution and Financing

14 KEN DRAFT (IN PERSPECTIVE OF ENERGY RESISTANCE FOR SUSTAINABLE ECONOMY) a. Related to Energy Availability: To change the paradigm of energy management To increase exploration of energy resources, potential and/or proven reserves To increase energy production and energy domestic and foreign sources To reduce until ceasing the export of fossil energy gradually To materialize balance between the addition speed of fossil energy reserves and the production speed To prioritize local energy resources To minimize the use of natural oil To maximize the use of renewable energy To optimize utilization of natural gas and new energy Development of energy intensive industry in areas rich of energy resources. To prepare buffer reserves and strategic energy reserves for securing long-term energy resistance b. Related to Accessibility (Access): To prioritize energy supply to people who have hade no access to energy Development and confirmation of energy infrastructures (responsibility of Government and/or Regional Government) Development and confirmation of energy infrastructures by: increasing the capacity of domestic industry in the supply of energy infrastructures; minimizing disparity of electric energy supply outside Java by regionalization of electric energy supply; developing support infrastructures of coal industry, covering transportation, stockpiling and blending conducting acceleration in supplying the oil and gas production support infrastructures (fuel refinery, transportation and distribution of energy, transmission system) acceleration of new and renewable industry support infrastructures. Development of energy infrastructures shall consider the geographical condition of Indonesia (by strengthening the infrastructures of exploration, production, transportation, distribution and transmission in areas of islands) Strengthening energy industry development in the frame of accelerating the achievement of targets of energy supply and utilization, national economy strengthening and absorption of employment opportunity

15 KEN DRAFT (IN PERSPECTIVE OF ENERGY RESISTANCE FOR SUSTAINABLE ECONOMY) c. Related to Acceptability (Public Acceptance) : The management of national energy is harmonized with the direction of sustainable national development, natural resources preservation, energy resources conservation, and environment pollution control. The management activity shall consider factors of health, work safety, and social impacts while maintaining the environment functions. The activity of energy management applies reduction of wastes production while considering its social, environment and economic aspects. Any undertaking of nuclear installation shall observe safety and risk of accident. d. Related to Affordability (ability to pay): The price of energy is fixed based on the value of justified economy, which reflects the cost of energy production, environment cost, conservation cost and the profit studied based on the people s buying power The calculation of renewable energy price with the assumption for competing with energy price from natural oil energy sources To materialize the coal market regulated by regulating domestic coal price by the Government until an efficient market has been established The government materializes the regulated electric power market The government regulates the renewable energy market, including the minimum quota of electric power, liquid fuel and gas originated from new and renewable energies The subsidy is provided by the Government and Regional Government. In case the application of justified economy and people s affordability is unable to perform, the Government and Regional Government shall provide the subsidy. In case the price of renewable energy is more expensive than the price of energy from non-subsidized oil fuel, the Government shall provide the subsidy. Reduction of BBM and electricity subsidy is conducted gradually until people has reached the affordability.

16 CONCLUSION 1. The national energy policy is intended to materialize energy resistance and energy independence to support the national sustainable development; 2. A sustainable economic growth could only be materialized by the support of energy resistance and energy independence; 3. The target of economic growth (as specified in MP3EI) could only be reached if supported by adequate energy supply capacity, by considering energy elasticity; 4. The target of energy elasticity in 2025 reaches 1, it means that the achievement of a certain economic growth must be supported by preparing energy with the energy growth equal to economic growth; 5. The targets of energy requirement and electricity supply in the future are projected by assuming that in 2025 Indonesia will become a new advanced country, therefore the targets of energy requirement and the supply of power plant capacity in 2025 are projected as follows: a. The consumption of primary energy per capita increases 3x in 2025 (from 0,4 MTOE/annum today to 1,4 MTOE/annum in 2025); b. Electricity consumption per capita increases 5x in 2025 (from 591 Kwh/per capita today to 2500 KWh/annum in 2025); c. Primary energy supply increases 2,5x in 2025 (from 162 MTO today to 400 MTOE in 2025) d. The supply of power plants increases over 3x in 2025 (from 35 GW today to 115 GW in 2025) 6. If the targets of energy and electricity supply and utilization specified by KEN Draft can be achieved, in 2025 Indonesia will become a new advanced country (equal to OECD countries in 2005). 7. The detailed implementation of the targets specified in KEN Draft is formulated in the National Energy General Plan prepared by the Government.

17 SECRETARIATE GENERAL OF NATIONAL ENERGY BOARD 4 th fl. Badiklat ESDM Building, Jl. Jenderal Gatot Subroto Kav 49 Jakarta Selatan Tel. (+6221) Fax. (+6221) THANK YOU