ENERGY EFFICIENCY, CHP, AND ISO 50001: CHP AS PART OF THE ENERGY EFFICIENCY AGENDA

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1 ENERGY EFFICIENCY, CHP, AND ISO 50001: CHP AS PART OF THE ENERGY EFFICIENCY AGENDA Presented by: Maritje Hutapea Director for Energy Conservation Directorate General of New Renewable Energy and Energy Conservation Jakarta, 14 th November

2 Background Development of Cogeneration ISO Energy Management System 2

3 Background 3

4 Economic Growth GDP(Trllion IDR) 6.1% 2,177 3,943 Energy Growth Energy (Million BOE) 1,316 1, , % Population Growth Population (Million) % The chart is based on Draft National Energy Policy 4

5 Sector Potential of EC Target of Energy Conservation Sectoral (2025) Industry 10 30% 17% Commercial 10 30% 15% Transportation 15 35% 20% Houshold 15 30% 15% Others (ACM) 25% - Low energy efficiency implementation High primary energy intensity: 502 BOE/Billion IDR source: Draft National Energy Conservation Master Plan (RIKEN)

6 Global Warming and Climate Change has been a Hot Issue President Commitment on G-20 Pittsburgh and COP15 To reduce the GHG Emission in 2020 Own efforts 26% (767 mln Ton) 41% (26%+15%) Own efforts and international support Presidential Reg No. 61/2011 RAN-GRK Presidential Reg No. 71/2011 GHG Inventory and MRV Through the development of new renewable energy and implementing energy conservation by all sectors 6

7 21% Gas 27% Coal 4% NRE 48% Oil Gas 21% Coal 34% BAU NRE 3% Oil 42% President Regulation No. 5/2006 NRE 17% Gas 30% Oil 20% Coal 33% VISION 25/25 NRE 23% Gas 22% Oil 25% Coal 30% Energy Conservation Target in 2025: - Energy Elasticity < 1 - Reducing Energy Intensity 1% per Year 4200 Million BOE 3200 Million BOE 2785 Million BOE 1237 MillionBOE 4 % 27 % 21% 48% 2034 MBOE 3221 MBOE ,1% 34.6% 20,6% 41.7% % NRE 33% Coal 30% Gas 20% Oil ENERGY CONSERVATION (33.7%) 23 % NRE 30% Coal 22% Gas 25% Oil ENERGY DIVERSIFICATION 7

8 1. Energy Conservation to improve efficiency in energy utilization from up-stream up to down-stream (include CHP) i.e. industrial, transportation, household and commercial sector. 2. Energy Diversification to increase new renewable energy share in national energy mix (Supply Side), which consists of: New Energy Renewable Energy a. Liquefied Coal, a. Geothermal, b. Coal Bed Methane, b. Hydro, c. Gasified Coal, c. Bioenergy, d. Nuclear, d. Solar Energy, e. Hydrogen. f. Wind Energy, g. Ocean Energy. 8

9 DEVELOPMENT OF COGENERATION 9

10 Improving Energy Management Improving Power Quality Implementing Cogeneration Implementing Energy Efficient Technology, etc. 10

11 Definition: Cogeneration is thermal energy conversion system that produce electricity and heat simultaneously Other term: Combined Heat and Power (CHP) Source: BPPT 11

12 Potential Cogeneration (GWh) No. Industry Minimum Maximum 1 Steel 19,7 246,2 2 Textile 106, ,7 3 Palm Oil Processing 4,1 31,9 4 Pulp & Paper 693, ,1 5 Vertilizer 49,8 996,2 6 Ceramic 7,8 95,5 7 Cement 901, ,2 Total 1.782, ,8 Note: Data of cogeneration potential is processed by BPPT, based on the reference of Industrial Sector Energy Needs Planning in the Context of Accelerated Industrialization, Ministry of Industry,

13 No. Industry/Sector No. Plant/Company Capacity (MW) 1 Chemical: - Fertilizer - Petrochemical - Chement Pulp & Papper 7 516,4 3 Textile Food Petroleum Agriculture 4 40,7 7 Commercial 1 8 Total ,1 Source: Verina JW., Energy and Electricity Technology Research and Development Centre (EERDC), MEMR, Electricity Supply Industry in Trasition: Issues and Prospect for Asia, January

14 Energy Efficiency: Utilization of exhaust gases will increase the output of useful energy without additional primary energy input. Cost Saving: Cogeneration doesn t need additional primary energy. Reducing Green House Gas Emission: The more efficience use of energy, the less green house gas emission. 14

15 SNI ISO 50001: 2012 ENERGY MANAGEMENT SYSTEM 15

16 Voluntary International Standard Developed by ISO (International Organization for Standardization) and adopted by Indonesia National Standard Gives organizations the requirements for energy management systems (EnMS) 16

17 Policy Targets and objectives Use data and make decision Measure Review Continual improvement 17

18 Appoint Energy Manager Conduct Energy Audit Implement the Energy Audit Recommendation Report Energy Management Implementation Shall establish energy management team Energy management team led by energy manager Energy managers must have a certificate of competence Regularly conducted at least once in 3 (three) years. performed by the internal energy auditors and / or accredited institution. Auditors must have a certificate of competence No cost recommendation implemented <1 year Low cost recommendations implemented <2 years High and Medium cost recommendations implemented <5 years Annual report is submitted to MEMR c.q. DGNREEC, Governor, Regent/Mayor in accordance with the authority Report is submitted in January - March 31 of the next year First report is submitted in January

19 Lack of management s awareness on energy efficiency Lack of human resources in the implementation of energy management and energy efficiency audit Lack of information and understanding of the financial benefits and other qualitative benefits of energy efficiency measures 19

20 Year 2013 : Capacity Building for 40 (forty) energy manager candidates Capacity Building for 40 (forty) energy auditors candidates Energy Management System ISO training in cooperation with UNIDO 20

21 Energy Managers = 70 persons Energy Auditors = 20 persons *) Source: Data of HAKE, August

22 3 times "executive briefing" about ISO has been conducted, it was attended by 257 industry management. 3 times "2 days user training for ISO 50001" has been conducted, it was attended by 272 representatives of industry. 23 Candidates for National Expert Energy Management Systems ISO has completed a series of training (provided through 3 modules), which conducted on September September Pilot Company has obtained assistance from national expert candidates. 22

23 Year 2014 : Capacity Building for 60 (sixty) energy manager candidates Capacity Building for 40 (forty) energy auditor candidates Energy Management System ISO training in cooperation with UNIDO Development of Indonesian National Working Competency Standard (SKKNI) on Energy Management System Development of web based energy management reporting system Energy efficiency technical training for Small and Medium Enterprises 23

24 MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION Jalan Pegangsaan Timur No.1A, Cikini, Jakarta 10320; Telp/Fax : (+6221) / / 24

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