Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES
TOWARDS SUSTAINABLE ENERGY SUPPLY: INDONESIA’S ENERGY VISION 25/25 by : Director General Of New and Renewable Energy and Energy Conservation
Presented at RENEWABLE ENERGY CONFERENCE: GREEN SUPPLY FOR GROWING DEMAND Jakarta, 24th October 2011
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
OUTLINE I. II.
III.
IV.
Current Energy Condition Shifting Paradigm Renewable Energy Policy • Policy and Strategy • Policy Instrument • Regulatory Framework Clean Energy Initiative
2
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
I. CURRENT ENERGY CONDITION 2.1 People access to energy is still limited :
National Energy Mix 2010 1.066 millon BOE Geothermal 1.5%
Coal 26.38%
Hydro 3.29%
Oil 46.93%
Gas 21.9%
a.
Electrification ratio in 2010 is 67,2% (32,8% of household is not yet have access to electricity);
b.
Development of the infrastructure (rural area and outer island commonly is not yet have access to energy);
2.2 Energy consumption growth is 7% per year, not yet balance with the energy suppy; 2.3 The depence to fossil energy is high, besides the energy reserve is limited; 2.4 Fossil subsidy is increasing; 2.5 Renewable energy utilization and energy conservation implementation is not yet optimized;
Energy Elasticity = 1,60 Non Fossil Energy Share < 5%
2.6 Link with environmental issue: a. Climate change mitigation; b. Clean energy initiative: national commitment to reduce emission by 26% in 2020; 2.7 Funding for energy development is limited 4
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
ENERGY RESERVES AND PRODUCTION NO
NON FOSSIL ENERGY
RESOURCES (SD)
INSTALLED CAPACITY (KT)
RATIO KT/SD (%)
1
2
3
4
5 = 4/3
1
Hydro
75,670 MW
5,705.29 MW
7.54
2
Geothermal
29,038 MW
1,189 MW
4.10
3
Mini/Micro Hydro
1,013.5 MW
462.0 MW
46.0
4
Biomass
49,810 MW
1,618.40 MW
3.25
5
Solar Energy
4.80 kWh/m2/day
13.5 MW
-
6
Wind Energy
3 – 6 m/s
1.87 MW
-
7
Uranium
3.000 MW (e.q. 24,112 ton) for 11 years *)
30 MW (Thermal)
1.00
*) only in Kalan – West Kalimantan
RESERVES (CAD)
RATIO SD/CAD (%)
PRODUCTION (PROD)
RASIO CAD/PROD (YEAR)*)
NO
FOSSIL ENERGY
RESOURCES (SD)
1
2
3
4
5 = 4/3
6
7 = 4/6
1
Oil (billion barrel)
56.6
7.99 **)
14
0.346
23
2
Gas (TSCF)
334.5
159.64
51
2.9
55
3
Coal (billion ton)
104.8
20.98
18
0.254
83
4
Coal Bed Methane/CBM (TSCF)
453
-
-
-
-
*) with assumption there is no new found **) Cepu Block is included
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
GROWTH OF SHARE AND FOSSIL SUBSIDY 2000 â&#x20AC;&#x201C; 2009 A. Growth of Total Share (inmillion BOE)
727
772
800
859
873
896
897
956
1014
1065
4,07%
18,48 % Natural Gas
The last 10 years average growth: 1. Oil : 2. Coal : 3. Natural Gas : 4. Total :
0,52 13,70 1,81 4,33
NRE
34,47 % Coal
%/year %/year %/year %/year
42,99 % Oil
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
B. Growth of Fossil Subsidy (in trillion Rupiah) 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
1. Electricity Subsidy
3,93
4,30
4,10
3,36
3,31
10,65
33,90
37,48
78,58
53,72
2. Fossil Electricity Subsidy *)
3.30
3.55
3.49
2.92
2.86
9.20
29.75
32.63
68.16
46.14
3. Fuel Subsidy
55.64
63.26
31.75
30.04
59.18
103.35
64.21
83.79
139.03
45.04
4. LPG Subsidy
0
0
0
0
0
0
0
0.15
3.84
7.78
58.94
66.81
35.24
32.96
62.04
112.55
93.96
116.57
211.03
98.96
Total Fossil Subsidy
*) Proportionate to the role of fossils in the composition of primary energy for electricity supply
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
TRANSFORMATION PARADIGM OF NATIONAL ENERGY MANAGEMENT ENERGY SUPPLY SIDE MANAGEMENT SUPPLY
Supplied by Fossil Energy, at any cost (Subsidize)
ENERGY DEMAND SIDE MANAGEMENT
DEMAND
Inefficient Sectoral Energy Demand: Household Transport Industry Commercial
DEMAND
Efficient Sectoral Energy Demand: Household Transport Industry Commercial
(DISVERSIFICATION
Fossil Energy as balancing factor
Current condition:
Future Condition:
1. 2.
1. 2.
3. 4.
Maximize the supply and utilization of New Renewable Energy, with Avoided Fossil Energy Costs
(CONSERVATION)
Renewable Energy as an alternative
Energy needs has not been efficient Energy needs are met with fossil energy at a cost of whatever and even subsidized Renewable energy as an alternative only Renewable energy sources that are not utilized is wasted God's gift
SUPPLY
3. 4.
Minimize the energy requirements Maximize the provision and utilization of renewable energy, at least with the price of fossil energy avoided cost, if necessary, subsidized Fossil energy is used as a counterweight Fossil energy sources are not utilized as a legacy for their children and grandchildren / exported
8
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
BAU** NRE; 4,4%
Coal; 30,7%
POLICY DIRECTION NRE 3%
PERPRES 5/2006 NRE 17%
Gas 21%
Oil 42%
Oil; 43,9% Gas; 21,0%
Gas 30%
Coal 34%
Oil 20%
Coal 33%
NRE 25%
Gas 23%
Oil 30%
Coal 22%
4300 Million BOE
3,1% 3200 Million BOE
2852 Million BOE
34.6%
17%
25 % NRE
33% 22 %
Coal
NRE
Coal
4,4 % 30,7 %
Gas
21 %
Oil
43,9%
2010*
30% 41.7% 20%
2015
2020
Souce: *Estimation 2010, DEN 2010-2025, **BAU EBTKE
2025
23 %
Gas 30 %
Oil
ENERGY DIVERSIFICATION
20,6% 1066 MillionBOE
ENERGY CONSERVATION (33,85%)
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
MAIN POLICIES 1. Energy Conservation to improve efficiency in energy utilization from up-stream up to down-stream (Demand Side) i.e industrial, transportation, household and commercial sector 2. Energy Diversification to increase new renewable energy share in national energy mix (Supply Side). i.e Renewable Energy New Energy a. Geothermal, a. Liquefied Coal, b. Bioenergy, b. Coal Bed Methane, c. Hydro, c. Gasified Coal, d. Solar, d. Nuclear, e. Wind, e. Hydrogen, f. Ocean. f. Other Methane. 8
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
NRE-EC DEVELOPMENT STRATEGY STRATEGY IN THE ENERGY (SUPPLY SIDE) : • • •
Applying the mandatory provision of NRE. Increasing the use of NRE. Use of cleaner fuels (fuel switching) in providing energy.
STRATEGY IN THE SIDE OF ENERGY UTILIZATION (DEMAND SIDE) : • • • • •
Applying the energy utilization efficiency commitment. Use of cleaner fuels (fuel switching) in energy utilization. Applying the principles of energy saving. Use of clean and efficient energy technologies. Develop the attitude of life-saving energy.
9
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
POLICY INSTRUMENTS Fiscal • • •
Fiscal incentive for NRE development (Article 20 paragraph 5 Law No. 30/2007) Pricing for new renewable energy (Feed-in Tariff/FIT) Renewable Portfolio Standard (RPS)
Institutional • • •
National Energy Council Ministry of Energy and Mineral Resources (National Level) Governor, District Mayors (Local Level)
Funds • National budget (APBN, APBD, Private Budget) and International budget from partners • Clean Development Mechanism (CDM)
10
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
POLICY AND REGULATION RELATED TO RENEWABLE ENERGY
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Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
BIOFUEL MANDATORY PROGRAM (based on Ministerial Decree No. 32/2008) BIOETHANOL (Minimum) Sector
2010
2015
2020
2025
Transportation, PSO
3%
5%
10%
15%
Transportation, Non PSO
7%
10%
12%
15%
Industry
7%
10%
12%
15%
BIODIESEL (Minimum) Sector
2010
2015
2020
2025
Transportation, PSO
2.5%
5%
10%
20%
Transportation, Non PSO
3%
7%
10%
20%
Industry
5%
10%
15%
20%
Electricity
1%
10%
15%
20%
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
MEMR REGULATION NUMBER 31 YEAR 2009
Regulation of electricity price from renewable energy resources and incentive factor based on plant’s location Article 1 paragraph (1) PT PLN (Persero) shall be obliged to purchase electricity from small and middle scale renewable power plant up to 10 MW or the excess electricity from State Electricity Enterprises, Regional Electricity Enterprises, private enterprises, cooperatives and nongovernmental organization in order to enhance local electricity supply systems.
Article 2 paragraph(1) The price of electricity purchase as referred in paragraph (1) is stipulated : a. IDR 656/kWh x F, if interconnected to Medium Voltage ; b. IDR 1,004/kWh x F, if interconnected to Low Voltage . Article 2 paragraph (2) F is an incentive factor which based on the location of the electricity purchase by PT PLN, as referred in article 2 which values at: • Java and Bali region :F = 1 • Sumatera and Sulawesi region : F = 1,2 • Kalimantan, NTB dan NTT region : F = 1,3 • Maluku dan Papua region : F = 1,5
REGION Java and Bali Sumatera, Sulawesi Kalimantan, NTB, NTT Maluku, Papua
Price at MV (IDR/kWh) 656 787 853 984
Price at LV (IDR/kWh) 1,004 1,205 1,305 1,506
Article 3 paragraph (2) The electricity purchasing price as referred in Article 2 is used in the power purchase agreement from excess electricity without any negotiation and without approval from the Minister of Energy and Mineral Resources, or Governor’s or Major’s/Regent’s, based on their authorization.
Article 4 paragraph (2) The electricity purchase as referred in paragraph (1) is based on PT PLN (Persero)’s Self Estimated Price and shall be obligated to receive the Minister of Energy and Mineral Resources’ approval 13
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
A NEW BIOMASSA BASED FEED IN TARIFF No.
FEEDSTOCK
CAPACITY
TARIFF
NOTE
1.
Biomassa
s.d 10 MW
Rp. 975,- / kWh X F
2.
Biogas
s.d 10 MW
Rp. 975,- / kWh X F
Non MSW
3.
Municipal City Waste
s.d 10 MW
Rp. 1050,- / kWh
Zero waste *)
4.
Municipal City Waste
s.d 10 MW
Rp. 850,- / kWh
Landfill *)
F factor as an incentive for specific areas: Region Jawa, Bali, Sumatera
:F = 1
Region Kalimantan, Sulawesi , NTB dan NTT
: F = 1,2
Region Maluku dan Papua
: F = 1,3
Feed in Tariff will be formalised by Ministerial Decree Note : *)
1. Act no. 18 Tahun 2008 on waste management to prioritize Zero Waste Technology.
2. For MSW, minimum Tipping Fee of Rp. 100.000,- / ton
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
MEMR REGULATION NUMBER 02 YEAR 2011 Regulation of electricity price from geothermal and the benchmark price
PT PLN (Persero) shall be obliged to purchase electricity from geothermal energy; The ceiling price for electricity produced from geothermal energy is determined at 9.70 cents/kWh; If the electricity price from auction exceeds 9.70 cent/kWh, there must be a renegotiation process based on PT PLN’s Self Estimated Price and the result must be approved by Ministry of Energy and Mineral Resources for Power Purchase Agreement
SUBSIDY Directorate General of New Renewable Energy and Energy Conservation SAVING ON ELECTRICITY Ministry of Energy and Mineral Resources
FROM GEOTHERMAL POWER GENERATION
US$
MALUT
NTT Grid
JAMALI Grid
26.9
SUMBAGUT SUMBAGSEL-BARAT-RIAU
26.9
TM
25.7
BPP (production cost) per kWh Local PLN Grid System
23.9 19.1
TT 20.9
Geothermal (PLTP) Price Tender Result per kWh
18.9
13.8
Currnet average of PLNâ&#x20AC;&#x2122;s BPP
9.7
8,7
Ceiling Price
8,7
8,7
8.09
9.4
8.1 6.9 6.3
6.3
6.3
Muaralaboh (220 MW)
Rajabasa (220 MW)
Suoh Sekincau (110 MW)
PLTP Jaboi (10 MW)
Sorik Merapi (240 MW)
Sokoria (30 MW)
Atadei (10 MW)
Ungaran (110 MW)
Cisolok Cisukarame (40 MW)
6.6
Tampomas (45 MW)
Tangkuban Perahu (120 MW)
5,9 5.9 Current average TDL
8,7
9.5
9.5
7.0
6.9
Jailolo (10 MW)
Subsidy
12.9 Avoided Electricity Subsidy
21
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
MINISTRY OF FINANCE REGULATION NUMBER 21/PMK.011/2010 Regulation of tax and customs facility for renewable energy resources utilization activities
FINANCIAL INSTRUMENTS SUPPORT
Income Tax
• Reduced net income for 30% of total investment • accelerated depreciation • Imposition of Income Tax on dividend p aid to Foreign Taxable at 10% • compensation for losses in certain circumstances
Value Added Tax
Exemptions of VAT for Taxable Goods, machinery and equipment for RE utilization (not included spare parts)
Import Duty
Exemptions for Import Duty of Goods and Machinery for development and capital investment Capital Goods Imports for construction and development of electricity industry
Tax Borne by Government
Regulated in State Annual Budget Law and its implementing regulations
17
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
CLEAN ENERGY INITIATIVE: Reducing Emissions from Fossil Fuel Burning (REFF-Burn) A. Pre-Fossil Combustion to avoid using more fossil energy : 1. Efficient Energy Technologies (High Efficiency Light, Efficient Appliances, etc) 2. Renewable Energy Technologies (Geothermal, Hydro, Solar, Wind, etc) 3. Fossil Pre-Treatment (Coal Upgrading) B. During Fossil Combustion to reduce greenhouse gases emitted from fossil fuel burning: 1. Efficient Technologies (Co-generation) 2. Low Carbon Electricity Generation (High Efficiency Low Emission, IGCC, etc) 3. Clean Fuel Technology (Fuel Switching) C. Post Fossil Combustion to capture and store the greenhouse gases from fossil fuel burning : 1. Carbon Capture and Storage Technologies (CCS & Algae) 2. Utilization of CO2 7
Directorate General of New Renewable Energy and Energy Conservation Ministry of Energy and Mineral Resources
Thank You
Go Green Indonesia ! Green energy, Future energy KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL REPUBLIK INDONESIA
DIREKTORAT JENDERAL ENERGI BARU, TERBARUKAN, DAN KONSERVASI ENERGI Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Phone/Fax : 021-5250575 www.ebtke.esdm.go.id
www.energiterb aru ka n.ne t
www.konservasi ene rgi.n et