EMR for People s Welfare

Transcription

1 MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION by: Tisnaldi Director of Geothermal Presented at: INDONESIA EBTKE CONEX (CONFERENCE AND EXHIBITION) 2013: New And Renewable Energy And Energy Conservation Road To Energy Security And People Wellfare Jakarta, August 22 nd, 2013

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3 Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi Energi Kementerian Energi dan Sumber Daya Mineral GEOTHERMAL DEVELOPMENT INSTAL LED CAPACI TY (MW) DEVELOPMENT (MW) ADDED CAPACITY (MW) TOTAL INSTALLED CAPACITY (MW) Note: - Capacity Factor of Geothermal Power Plant = 90%

4 TRANSFORMATION ON ENERGY MANAGEMENT PARADIGM CURRENT: ENERGY SUPPLY SIDE MANAGEMENT FUTURE: ENERGY DEMAND SIDE MANAGEMENT SUPPLY DEMAND DEMAND SUPPLY Fossil Energy with any any cost (Even subsidized) Renewable Energy acts as an alterna<ve Inefficient Sectoral Energy Consump<on: Household Transport Industry Commercial Efficient Sectoral Energy Demand: Household Transport Industry Commercial (CONSERVATION) Maximize the supply and u<liza<on of New Renewable Energy, with Avoided Fossil Energy Costs (DIVERSIFICATION) Fossil Energy Act as balancing factor n Energy consumption is not efficient n Energy needs is fulfilled by fossil energy with any cost, and even subsidized n Renewable Energy acts as an alternative only n Unutilized Renewable Energy sources are wasted God's gift n Efficient energy consumption n Maximize the supply and utilization of renewable energy, at least with avoided fossil energy costs and even can be subsidized n Fossil energy acts as balancing factor n Unutilized fossil energy sources is legacy for next generation or export commodity

5 CHANGES IN GEOTHERMAL BUSSINESS STRUCTURE (in accordance with Law No. 27/2003 on Geothermal) Before the enactment of Law No. 27/2003, all Geothermal Working Area s (GWA) are managed and developed by the state oil company (PERTAMINA). Currently, GWA s are open widely for business entities through tender process. PREVIOUS BUSSINESS STRUCTURE CURRENT BUSSINESS STRUCTURE Geothermal Working Area Joint Operation Contract OR Exploration/Exploitation Right Granted Through Tender Process Geothermal Working Area PERTAMINA Third Party Third Party Energy Sales Contract (Steam or Electricity) Energy Sales Contract (Electricity) PT. PLN (Persero) PT. PLN (Persero)

6 Pricing Electricity price from geothermal energy still considers has not reached its economical value; High upfront risk in exploration stage Reflected in higher energy cost lowering competitiveness to the least-cost-options; Large amount of initial investment Big owner-investment needed, limiting the playing field; Land-use Issues Geological Agency has been identified that more than 70% of geothermal areas are partially or completely overlapping with forestry areas (conservation forest, protected forest and production forest).

7 National Legislation Program 2013 (Prolegnas) has been included the amendment of Laws No. 27/2003 on Geothermal; Second revision on Government Regulation Number 59/2007 on Geothermal Business Activities will be enacted in the near future; The principal substance for revision MEMR Regulation No.11/2008 is focused on evaluation method of the GWA tender process in accordance with the draft of second revision on Government Regulation Number 59/2007; Improvement on geothermal price structure through the revision of MEMR Regulation No. 22/

8 The revision on Government Regulation Number 59/2007: Tender process consist of two phase; The tender winner will be based upon the best score towards combination of work program and exploration commitment; The tender winner should deposit a fund at amount of USD $ 10 million as an exploration commitment; If the winning bidder does not conduct exploration activities after 6 (six) months from the issuance of the IUP, the exploration commitment become the property of the State; Provision about ongoing GWA tender mechanism prior to the issuance of this rule, will follow the existing regulation. 7

9 MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : bahan_ebtke@yahoo.com