DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA By: Dr. Dadan Kusdiana Director for Bioenergy Forum on Biomass Industry in Indonesia: Challenge and Opportunities Jakarta, 5th September 2013
I. ENERGY CONDITION II. NATIONAL ENERGY POLICIES III. POTENTIAL OF BIOENERGY DEVELOPMENT IV. BIOENERGY TARGET AND INCENTIVES V. BIOENERGY TARGET IMPLEMENTATION VI. STEP FORWARD VII. CONCLUDING REMARKS
Energy Mix 2011 Average growth rate of energy consumption is 7% per year Oil 47% Gas 24% NRE 5% Coal 24% High dependence on fossil energy while the reserves are more limited Less of energy infrastructure development, particularly in rural / remote areas and outer islands Utilization of renewable energy and implementation of energy conservation is not optimal Public access to modern energy is still limited; electrification ratio (2011) is 72.95% Share of Non Fossil Energy 5% Linkage to environmental issues about mitigation of climate change.
II. INDONESIA S ENERGY POLICY (LAW NO. 30/2007 CONCERNING ENERGY) ENERGY CONSERVATION: to improve efficiency in energy utilization in sectors of Industrial, transportation, household and commercial (Demand Side). Huge implementation opportunity due to Indonesia is a wasteful energy consumer, measured from its energy intensity. Conservation cost is cheaper than cost of increasing supply. Implementing conservation is faster than increasing supply. ENERGY DIVERSIFICATION: to increase new and renewable energy (NRE) utilization (Supply Side). Huge potential. Implementable faster than fossil energy. No need of massive investment.
NATIONAL PROJECTOIN ON PRIMARY ENERGY MIX Energi Total MILLION SBM 2010 2015 2020 2025 2030 2040 2050 1,178.19 1,593.15 2,148.90 2,815.80 3,556.80 5,483.40 7,261.80 Biomass Biofuel 37.05 74.10 111.15 222.30 296.40 518.70 703.95 Biomass MSW (electricity) - 7.41 22.23 66.69 148.20 296.40 407.55 Geothermal 22.23 66.69 111.15 222.30 296.40 481.65 629.85 Hydro 7.41 14.82 37.05 81.51 111.15 148.20 177.84 Ocean - - 3.71 7.41 10.37 22.23 37.05 Solar - 3.71 14.82 29.64 44.46 103.74 133.38 Other RNE - 1.48 7.41 11.12 14.82 29.64 37.05 Oil 585.39 615.03 629.85 666.90 689.13 926.25 1,200.42 Gas 237.12 311.22 407.55 555.75 666.90 889.20 1,037.40 Coal 288.99 496.47 792.87 866.97 1,104.09 1,645.02 2,156.31 NE (nuclear and other) - - 14.82 88.92 177.84 444.60 741.00 Subtotal Biomass 37.05 81.51 133.38 288.99 444.60 815.10 1,111.50 Subtotal RE Non Biomass 29.64 88.92 177.84 355.68 474.24 785.46 1,015.17 Subtotal RE 66.69 170.43 311.22 644.67 918.84 1,600.56 2,126.67 Total NRE 66.69 170.43 326.04 733.59 1,096.68 2,045.16 2,867.67 Source: Draft of National Energy Policy, DEN 2012
Law No. 30 Year 2007 on Energy Presidential Regulation No. 5 Year 2006 on National Energy Policy Priority supply and use of renewable energy, including bioenergy. Biofuel is targeted by 5% in 2025 in the national energy mix. Presidential Instruction No. 1 Year 2006 on Provision and Utilization, of Biofuel as Other Fuel Instructions to the Minister, Governor and Mayor to take action in order to accelerate the provision and utilization of biofuel; Ministry of Energy And Mineral Resources Regulation No. 32 Year 2008 on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel Ministry of Energy and Mineral Resources Regulation No. 4 Year 2012 and No. 19 Year 2013 Mandatory of biofuel utilization roadmap (biodiesel, bioethanol, and biooil) in transportation, industry, commercial, and electricity generation sectors Electricity Price (Feed-in Tariff ) for Bioenergy Based Power Plant (Biomass, Biogas, and Municipal Solid Waste)
BIOENERGY CONVERSION INSTALLATION Bio-Refinery Distribution 1. Biodiesel 2. Bioethanol 3. Biooil Bio-Gassification Anaerob Digestion Distribution Biogas Bio-Briquettes Distribution Bio-Briquettes/Pellet Bio-Cook Stove Integrated Generator Electricity i. Provision of bioenergyas the final energy consists of liquid, gas, solid, and electricity forms. ii. Bioenergy in a liquid form, namely biofuel consists of biodiesel, ethanol, and pure vegetable oil, can be used as a substitute for oil fuel. iii. Bioenergy in a gas form, namely biogas, can be used as fuel for stoves and power plants. iv. Bioenergy in a solid form can be produced as briquettes or pellets. v. Bioenergy can also be converted into electricity (by using biofuels, biogas, and gasification).
1. Bioenergy can be utilised for various of needs (fuel, heat and electricity) and can be produced in many ways (liquid, gas and solid forms). Therefore, bioenergy are relatively easy to continuously adjusted to the needs; 2. Type of fuel: biodiesel (substitution for diesel oil), bioethanol (substitution for gasoline), biooil (substitution for diesel oil), agricultural waste, biogas, briquettes. 3. Bioenergy technology is to be continuously developed in order not only to increase an efficiency/productivity, but also to produce other types of bioenergy products, such as pellets, DME, biomethanol, refuse derived fuel (RDF), biobuthanol, biooil, green jet oil, green diesel, etc.
1. Indonesia as an agricultural country is blessed by various types of crops, where crops due to climate and soil condition, can grow faster. Moreover, farming has become a major activity. 2. When other renewable energy production are really depended on nature condition, bioenergy production are mostly can be managed by human being; 3. Bioenergy can be developed in all regions. 4. Short life cycle supply of bioenergy resources (3 months for sweet sorghum, 4 years for palm, and 3 months for cows). 5. Bioenergy can be directly utilized in energy conversion systems/existing equipments (biomass on power plant, biofuel in vehicles). 6. Bioenergy utilization has directly impacts to community (pro-growth, pro-job, pro-poor).
1. BIOFUEL Biodiesel: Bioethanol: CPO production rate is about 28 million tons per year - where it is only a small part of it is used for biodiesel. Many other biodiesel sources: Jatropha, Nyamplung, Kemiri Sunan, etc. are potential to be developed. Mollasses production rate is 1,5 million tons; cassava production rate is 22 million tons. Many other bioethanol sources: sorghum, corn, etc. are potential to be developed. 2. BIOGAS Biogas can be produced from organic materials, such as animal dung, and organic wastes. Currently, it is estimated that population of ruminants is about 17 million of big ruminants and 28 million of small ruminants in Indonesia. 3. BIOMASS Indonesia has a wide range of biomass type of wastes in large amount produced from agricultural industry and municipal. Biomass potential for electricity in Sumatera region is estimated about 12,961 MW, while in Kalimantan region is about 4,493 MW.
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives...(1/4) 1. BIOENERGY ROADMAP 2015-2025 Type Unit 2015 2020 2025 Biofuel Million kl 2,69 5,80 13,51 Biodiesel Million kl 2,35 4,73 9,52 Bioethanol Million kl 0,20 0,80 3,45 Biooil Million kl 0,13 0,27 0,54 BioAvtur* Million kl 0 0,14 0,16 Biogas Million m3 7,762 28,821 107,012 Biomass MWe 875 2.670 8.149 Note: * Starting with 2%-bioavtur concentration in 2016; developed by DGNREEC MEMR based on Draft of National Energy Policy, Nationel Energy Council
DEVELOPMENT OF BIOMASS ELECTRICITY 2010 2015 No Development 2010 2011 2012 2013 2014 2015 I Plan based on National Energy Policy: - Installed Capacity (MW) 20 50 100 200 690 II Development 1. Added Capacity (MW) 20 21 159 172 415 2. Installed Capacity Cumulative (MW) 500 520 541 700 872 1.287 III Ratio of II/I (%) 2600 1082 700 436 187 Note: - CF = 70%
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives...(1/4) 1. BIOFUEL USAGE MANDATORY ROADMAP (As stated on Draft Revision of the Ministry of Energy and Mineral Resources Regulation No. 25 Year 2013) BIODIESEL (Minimum) Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025 Transportation, PSO 10% 10% 10% 20% 20% 25% Transportation, Non PSO 3% 10% 10% 20% 20% 25% Industry and commercial 5% 10% 10% 20% 20% 25% Electricity Generation 7,5% 20% 25% 30% 30% 30% BIOETHANOL (Minimum) Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025 Transportation, PSO 0,5% 1% 2% 5% 20% Transportation, Non PSO 1% 1% 2% 5% 10% 20% Industry 1% 2% 5% 10% 20%
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives...(2/4) 2. BIOFUEL USAGE MANDATORY ROADMAP (As stated on Draft Revision of the Ministry of Energy and Mineral Resources Regulation No. 25 Year 2013) Industry and Transportation (low and medium speed engine) PURE PLANT OIL (Minimum) Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025 Industry 1% 5% 10% 20% 20% 20% MarineTransportation 5% 10% 20% 20% 20% Air Transportation 2% 3% 5% Electricity Generation 1% 6% 15% 20% 20% 20%
IV. TARGET AND INCENTIVES : Bioenergy Roadmap and Incentives...(3/4) 3. FEED-IN TARIFF FOR BIOENERGY BASED POWER PLANT (As stated on the Ministry of Energy and Mineral Resources Regulation No. 4 Year 2012 and No. 19 Year 2013) No. Energy Capacity Electricity Tariff Note Medium Voltage 1. Biomass until 10 MW Rp. 975,- / kwh X F 2. Biogas until 10 MW Rp. 975,- / kwh X F Non Municipal Solid Waste 3. Municipal Solid Waste (MSW) until 10 MW Rp. 1.450,- / kwh Zero waste *) 4. Municipal Solid Waste (MSW) until 10 MW Rp. 1.250,- / kwh Sanitary Landfill *) Low Voltage 1 Biomass until 10 MW Rp. 1.325,- / kwh X F 2 Biogas until 10 MW Rp. 1.325,- / kwh X F Non Municipal Solid Waste 3 Municipal Solid Waste (MSW) until 10 MW Rp. 1.798,- / kwh Zero waste *) 4 Municipal Solid Waste (MSW) until 10 MW Rp. 1.598,- / kwh Sanitary Landfill *) F is an incentive factor based on the region where the power plant is installed, as follows: Jawa, Bali, and Sumatera region : F = 1 Kalimantan, Sulawesi, NTB and NTT region : F = 1,2 Maluku and Papua region : F = 1,3
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives...(4/4) 4. BIOFUEL USAGE MANDATORY ROADMAP a. Priority for local Potential NRE (no bidding) b. The Obligation of NRE electricity puchasing by PT. PLN (Persero) c. Feed-in-Tariff for NRE electricity d. Income Tax Incentive for RE Invesment e. Incentive on permit of biomass facility
V. TARGET IMPLEMENTATION: Bioenergy Based Power Plant...(2/3) 1. Implementation of bioenergy based power plant (from biogas, biomass, and municipal solid waste) has increased significantly since the enactment of the new feed-in-tariff; 2. Current installed on-grid capacity of bioenergy based power plant in 2012 was 75.5 MW (in 2012, an increase capacity was 16.5 MW). No Company COD Contract Location Connection region Biomass Type Conracted Capacity (MW) 1 PT Riau Prima Energy 2001 Excess power Riau PLN Wilayah Riau palm waste 5 2 PT Listrindo Kencana 2006 IPP Bangka PLN Wilayah Bangka Palm waste 5 3 PT Growth Sumatra 2006 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 6 4 PT Indah Kiat Pulp & Paper 2006 Excess power Riau PLN Wilayah Riau palm waste 2 7 PT Belitung Energy 2010 IPP Belitung PLN Wilayah Babel Palm waste 7 8 PT Growth Sumatra 2010 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 9 9 PT Pelita Agung 2010 Excess power Riau PLN Wilayah Riau Palm waste 5 10 Permata Hijau Sawit 2010 Excess power Riau PLN Wilayah Riau Palm waste 2 11 PT Navigat Organic 2011 IPP Bali PLN Dist Bali MSW 2 12 PT Navigat Organic 2011 IPP Bekasi PLN Dist Jabar MSW 6 13 PT Growth Asia 2011 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10 14 PT Growth Asia 2012 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10 15 PT Navigat Organic 2012 IPP Bekasi PLN Dist Jabar MSW 6.5 TOTAL ON-GRID CAPACITY 75.5
VI. STEP FORWARD: Current Issues on Bioenergy Development (1/4) 1. Development of integrated Bioenergy production facility with dedicated feedstock; 2. Regulating of Biomass/waste export/trading puposes; 3. Expansion of transmission network/national grid; 4. Biomass utilization in existing power plants (Co-firing); 5. Permit of non biofuel bioenergy facility; 6. Pricing policy for bioenergy; 7. Allocating special fund for implementation of biomass power plant by local government as energy access program
VI. STEP FORWARD: Effort to Support Bioenergy Development...(2/4) The Government cq. Ministry of Energy and Mineral Resources has a high commitment to continuously develop bioenergy and increase its utilization in order to strengthen the national energy security, by: 1. Feedstock a. Encouraging an upstream side development to secure the supply of bioenergy raw materials, eg. creating a dedicated land for bioenergy feedstock. b. In a coordination with the Ministry of Agriculture, creating some regulations and policy in an upstream side to ensure the availability of raw materials and land use and increase research and development for bioenergy crops. c. Creating some regulations and policy in biomass export to secure the feedstock of Biomass Power Plants. d. Enacting a sustainability development concept for bioenergy production. Currently Indonesia has developed Indonesia Sustainable Palm Oil (ISPO) and actively participate in international forum on sustainable bioenergy: Global Bioenergy Partnership (GBEP), and ISO for Sustainable Bioenergy.
VI. STEP FORWARD: Effort to Support Bioenergy Development...(3/4) 2. Technology and process a. Updating the standar specification for bioenergy production process. b. Adopting of second generation technology to reduce a competition level with food security. c. Reducing or exempted custom tax for renewable energy technologies. d. Integrating system to optimize utilization of bioenergy by-products and waste. e. Initiate a technical study for bio-avtur specification standard followed with provision of the specification standard to starting bioavtur program. f. Initiate a technical study for biomass cofiring on power plant.
VI. STEP FORWARD: Effort to Support Bioenergy Development...(4/4) 3. End user a. Updating the standar specification for bioenergy to guarantee the quality and safety of bioenergy products to end users. b. Updating the pricing regulation of bioenergy product to increase the utilization of bioenergy (especially for biofuel to cover blending and transportation costs). c. In a coordination with Ministry of Industry, enacting some regulations and policy to obligate automotive engines manufactured/distributed in Indonesia to use biofuel and to produce Flex Fuel Vehicle (FFV) that can take advantage of biofuels up to more than 50%. d. Encouraging a utilization of biofuel in the transportation for non-pso, industry, and electricity generation sectors. e. Increase capacity building and knowledge access for bioenergy to create people s awareness. 4. Incentives and Mandatory a. Enacting and updating the feed-in-tariff (regulated purchasing price) for bioenergy based power plant to increase the investment. b. Giving some incentives that consider macroeconomic aspects since bioenergy industry is still an infant industry.
VII. CLOSING: Concluding Remarks 1. As part of the national energy policy, bioenergy development and its utilisation will be continuously implemented in order to strengthen the national energy security as well as to improve the people s welfare. 2. Bioenergy development and utilization is one of essential keys to reduce the dependence on fossil fuel; 3. Among stakeholders, it is important to hand-in-hand in bioenergy development to achieve the goal on bioenergy development, giving benefits on economic, social and environment for Indonesia s welfare.
www.ebtke.esdm.go.id Directorate General of New, Renewable Energy and Energy Conservation Jl. Pegangsaan Timur No. 1, Cikini, Jakarta, Phone/Fax: +62-21 31924585