Post on 30-May-2018
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MINISTRY OF ENERGY AND MINERAL RESOURCES
DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY, AND ENERGY CONSERVATION
POLICY ON SOLAR AND
BIOENERGY DEVELOPMENT IN INDONESIA
Jakarta, March 20, 2018
Andriah Feby Misna
Director of Bioenergy
Presented at The German – Indonesian Conference on “Decentralized Energy Supply Solutions
Utilizing PV Hybrid and Bioenergy Technology in Indonesia”
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Current Energy Condition
0102
03
0405
06
07
EBT
MW
RP RP RP
Fosil
EBT
%Potensi
EBT= %
EBT
Efisien
Inefisiensi
The capacity of NRE-based power plant needs to be increased Indonesia is committed
to work towards Paris Agreement
Energy utilization is not yet efficient
Abundant Renewable Energy potential is not yet optimally utilizedIndonesia’s energy is still
dominated by fossil energy
Energy price is required to be pushed down to make it
affordable
Energy distribution should be optimized to increase
electrification ratio and ensure energy equality
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National Electrification Ratio
> 70
50 - 70
< 50
INFORMASI
ACEH
96.94SUMUT
97.86
RIAU
92.38
JAMBI
91.65
BABEL
99.00
KEPRI
77.02
BENGKULU
94.35
LAMPUNG
90.11
SUMBAR
87.69
SUMSEL
86.36
BANTEN
99.00
JABAR
99.87 DIY
89.80
DKI JAKARTA
98.08JATENG
94.83
BALI
94.84
JATIM
90.85
KALBAR
88.10
NTB
80.39
NTT
58.99
PAPUA
48.91
PABAR
90.15
MALUKU
87.66
MALUT
99.53
SULTRA
77.51
SULSEL
95.24
KALSEL
90.70
KALTENG
76.23
KALTARA
86.44
KALTIM
99.29
SULBAR
85.07
GORONTALO
89.28
SULTENG
83.77
SULUT
92.72
NATIONAL
95.35%
67,15
72,9576,56
80,5184,35
88,3091,16 92,75
95,1597,35
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Realisasi:93,08
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Renewable Energy Potential
Current Installed Capacity
: 60.491 MW
Potential :
75 GW (19,3 GW)
Realization
PLTA 5,124 GW
PLTMH 0,206 GW
(1,19%)
441,7 GW 9,07 GW (2% of total potential)
Hydro Solar Geothermal
Wind Bioenerg
y
Potential : 207,8 GWp
Realization
PLTS 0,090 GWp
(0,02%)
Potential
Resources: 11,0 GW
Reserve : 17,5 GW
Realization
PLTP 1,808 GW
(0,40%)
Potential : 60,6 GW
Realization
PLTB :1,1 MW
(0,0002%)
Sea
Potential
PLT Bio : 32,6 GW
BBN : 200 Ribu Bph
Realization
PLT Bio : 1,840 GW (0,4%)
Potential : 17,9 GW
Fossil Energy Proven Reserve Production Estimation
Oil 3,6 bilion barrel 288 million barrel 12 years
Gas 98 TSCF 3,0 TSCF 33 years
Coal 32,4 billion ton 393 million ton 82 years
Shale Gas 574 TSCF - -
Note:*) assumption if no new reserves invented
Fossil Energy Potential
9.071 MW:NRE Power Plant Capacity 15% of the total of installed capacity
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Policies and Regulations on NRE Development
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Energy Policies
Energy is an instrument to materialize social justice: energy should be available, equitable, and affordable;
01
Energy subsidy should be minimized;
02
Energy should improve people welfare (affordable) and increase industries' competitiveness;
03
Renewable Energy Utilization is a must;
04
Licensing cut off and simplification to encourage Renewable Energy investment.
05
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STRATEGY TO ACCELERATE RENEWABLE ENERGY DEVELOPMENT
1. Prioritize the development of geothermal energy, hydro, bioenergy, solar and wind;
2. Provide fiscal and non-fiscal insentives;
3. Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Bordered Areas, and Small Island with Population through the Implementation of Small Scale Power Generation;
4. Assignment to State-Owned Companies and Public Service Agencies
5. Facilitate private sector with PT PLN (Persero) to accelerate PPA;
6. Implement the Solar Powered Efficient Lamp (LTSHE) program as a pre-electrification program
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RENEWABLE ENERGY ROLES
• To increase energy supply;Renewable energy is targeted to achieve 23% by 2025, or equal to
45 GW.
• To accelerate the provision of modern energy access;Electrification ratio should increase up to 99% by 2019.
• To contribute in reducing greenhouse gas emission reduction program;Indonesia is committed to reduce its GHG emission by 29% in 2030
against a BAU baseline scenario. Energy sector is targeted to contribute in reducing emission up to 314 M tons of CO2.
• As a green economy driver.
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Commercial
Non-
commercial
Legal Basis
MEMR Reg 50 of 2017 on Utilization of
Renewable Energy Sources for the Provision
of Electric Power;
MEMR Reg 38 of 2016 on Acceleration of
Electrification in Undeveloped Rural Area,
Remote Areas, Border Areas, and Small
Island with Population through the
Implementation of Small Scale Power
Supply
Legal Basis
Presidential Reg. 47 of 2017 on LTSHE
MEMR Reg. 33 of 2017 on Procedures for
the Provision of LTSHE for Communities
Without Access to Electricity
MEMR Reg. 3 of 2017 on Operational
Guidance of DAK Physical Assignment of
Small Scale Energy
MEMR Reg. 12 of 2018 on the
Implementation of Physical Activity of New
Renewable Energy Utilization
Increasing Infrastructure RE Capacity – Power Plant
• On-grid and off-grid
communal systems:
Solar PV, Mini/
Microhydro, Wind,
Marine, Bioenergy PP
• Source of Funds:
Private Sector (Investor)
• Development of energy
infrastructure for rural
communities, outer
islands and border
areas
• Off-grid system: Solar
PV, Mini/Micohydro,
Wind, Marine,
Bioenergy PP, Solar PV
Street Lighting, LTSHE
• Source of Funds: APBN/
Special Allocation Fund
(DAK)
Improvement of
Infrastructure
Capacity of RE -
Power Plant
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Based on regulation LAW
Electricity power purchase mechanism
direct selection
Renewable Resources
Source of energy generated from sustainable energy resources if managed properly, among others: solar PV, wind, hydropower, biomass, biogas, municipal solid waste, geothermal, and ocean energy.
Type of Power GenerationPLTS FotovoltaikPLTBPLTAPLTBm
PLTBgPLTSaPLTPPLTA Laut
PLTP and PLTSa
PLTA, PLTS, PLTB, PLTBm, PLTBg dan PLTA Laut
Electricity Price
PLTS PLTB PLTBm PLTBG PLTA Laut
If regional BPP > the average of national BPP
The electricity purchase price is
maximum 85% of regional BPP
The electricity purchase price is based on agreement between parties (B2B)
PLTSa PLTP PLTA
If Local BPP > Average of National BPP
The electricity purchase price is maximum 100% of
regional BPP
the electricity purchase price will be based on agreement between
partiesNasional (Include Sumatera, Java and Bali)
MEMR Regulation No 50 year of 2017
If regional BPP < the average of national BPP If regional BPP < the average of national BPP
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70 NRE PPA in 2017
Never been happened years before
Hydro 754MW[62%]
Biogas9,8MW[1%]
Biomass32,5MW[3%]
Solar45MW[4%]
Geothermal86MW[7%]
Minihydro286,8MW[23%]
70Contracts
1.214,16 MW
2contractshave COD
Signing of 70 contractsRE Power Generation FY 2017
2 2 46 11 9January
13,5 MW
May
11 MWAugust
257,6 MW
September
291,4 MWNovember
640,6 MWMinihydro : 10 MWBiomass : 3,5MW
Minihydro : 9 MWBiogas : 2 MW
Minihydro : 175,8 MWBiomass : 29 MWBiogas : 7,8 MWSolar : 45 MW
Minihydro : 52,4 MWHydro : 239 MW
Minihydro : 39,6 MWHydro : 515 MWGeothermal : 86 MW
The Progress of NRE-based Power PlantContracts (2014-2017)
2014 2015 2016 2017
70Contracts
1.25
1MW
23Contracts 14
Contracts 14Contracts
1.82
9MW
116M
W
1.21
4,2M
W
16contracts
underconstruction
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The Development of Off-Grid Renewable Energy
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Progress of 2500 Villages Electrification Program
381.000 houses2.099 villages
47,6 million houses34.958 villages
256.000 houses2.519 villages
SumateraElectrified: 54 villagesNon electrified: 9 villages
SulawesiElectrified: 8 villagesNon electrified: 7 villages
Nusa TenggaraElectrified: 5 villagesNon Electrified: 18 villages
KalimantanElectrified : 15 villagesNon Electrified : 14 villages
Maluku Papua
Electrified : 12 villagesNon Electrified : 2.377 villages
PLN consumer
Non-PLN consumer
Non electrified
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MEMR Regulation No. 38/2016Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Bordered Areas, and Small Island with Population through the Implementation of Small Scale Power Supply
Renewable Energy To Provide ElectricityElectrification acceleration program in rural areas by prioritizing New and Renewable Energy based power plant
ELECTRIFICATION PROGRAM WITH TOTAL CAPACITY UP TO 50 MW IS INTENDED FOR :
Undeveloped Villages Remote Areas Villages in Bordered Areas Inhabited Small Islands
“There are 2.500 Villages without Electricity”The GOI target to electrify 2.510 villages by 2019
BUSINESS AREA DETERMINATION PROCEDURE TARIFF
The Minister of EMR is authorized to determine the business area that has been proposed by Governors.
The Minister of EMR appoints business entities that have already had IUPTL
The Governors propose business area
The Governors offer business area to business entities
The Governors issue IUPTL
INVESTMENTBased on Governor proposal, MEMR conducts
Auction for Business Area Developers.
AssignmentHead of Local Government can assign BUMD if there is no interested investor
SubsidiesThe GoI calculates the amount of the subsidy to be proposed to the DPR to be validated
Non Subsidies with Agreement Tariff (refer to BPP PLN)Tariff will be set by MEMR or Governor
Non Subsidies with National tariffElectricity tariff will correspond with PLN tariff
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Potential for Bioenergy Development in Indonesia
15
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The Advantages of Bioenergy
16
Uses waste as fuel
The feedstocks come
from crops (waste), animal or human waste
Can be developed from
small to large scale
Overcome
environmental
issuesMinimize organic waste
Can be utilized both
for electricity and fuel
Available throughout
the archipelagoCan be used as
based load
Indonesia has the
largest palm oil
plantation in the world
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Off Grid - Bioenergy Power Plant
Area & Biomass SourceOff-Grid (MW)
Capacity
SumateraPalm Oil Industry
POMESugar Cane IndustryPaper Industry
3359
66955
KalimantanPalm Oil Industry 91
Jawa-BaliPalm Oil IndustrySugar Cane IndustryMunicipal Waste
2142
-
SulawesiPalm Oil IndustrySugar Cane Industry
1111
PapuaPalm Oil Industry 4
TOTAL NATIONAL 1.626
On Grid Installed Capacity Up to 2017 reached 195.6 MW
• OFF GRID CAPACITY FOR BIOENERGY POWER PLANT IS MUCH HIGHER THANON GRID
• USUALLY USED AS CAPTIVE POWER FOR AGRICULTURE OR FORESTRY - BASED INDUSTRIES USING THEIR OWN WASTE AS FEEDSTOCK
• LOCATED IN RURAL AREA
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Solar PV – Diesel Hybrid Program
• In 2015, DGNEEC has been built 22 units of Hybrid PLTS in outer and border area in Indonesia, total capacity is 3,220 kWp
• Purpose:
a. To reduce the use of fuel in the diesel
b. To reduce greenhouse gas emissions
c. To reduce the cost of production of the power plant
Solar PV-Diesel Hybrid 100 kWp in Boven Digoel, PapuaSolar PV-Diesel Hybrid 350 kWp in Sabang, Aceh
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5Installed in 5 provincesin eastern part of Indonesia
Installed in 15 province
Electrifying 80.000 houses
Electrifying all Remote and Border Areas in Indonesia
Energy Efficient Solar Lamp (LTSHE)
“LTSHE is suitable for rural homes that are geographically
and the distribution of the population is scattered and
difficult to reach by PLN network
Current condition:
There are 2.519 villages with no
electrification, or 256.114 houses
TARGET:
Electrifying rural areas which have no
access to PLN grid, within 2 years (2017-
2019) by distributing LTSHE
2017 2018
”
EnergiBerkeadilan#Electrifying
175.782 houses
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Challenges and Opportunities
1. The development of RE-based power plant will be faster iflong-term green fund is available;
2. Foreign technical cooperation needs to be intensified fortransfer of technology and human resources development;
3. The opportunity for biofuel utilization is great, especiallybioethanol;
4. ESCO implementation is widely opened to increase;
5. Saving energy habit should be promoted.