DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION · DIRECTORATE OF NEW, RENEWABLE...
Transcript of DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION · DIRECTORATE OF NEW, RENEWABLE...
Energy and Mineral Resources for the People’s Welfare
By:
Dr. Dadan Kusdiana Director for Bioenergy
DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA
Forum on Biomass Industry in Indonesia: Challenge and Opportunities
Jakarta, 5th September 2013
Energy and Mineral Resources for the People’s Welfare
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 and Mineral Resources for the People’s Welfare
Energy Mix 2011
Share of Non Fossil Energy ≈ 5%
Average growth rate of energy consumption is 7% per year
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%
Linkage to environmental issues about mitigation of climate change.
NRE 5%
Coal 24%
Gas 24%
Oil 47%
Energy and Mineral Resources for the People’s Welfare
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.
II. INDONESIA’S ENERGY POLICY (LAW NO. 30/2007 CONCERNING ENERGY)
Energy and Mineral Resources for the People’s Welfare
NATIONAL PROJECTOIN ON PRIMARY ENERGY MIX
MILLION SBM
Energi Total 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
Energy and Mineral Resources for the People’s Welfare
Law No. 30 Year 2007 on Energy
Presidential Regulation No. 5 Year 2006 on National Energy Policy
Presidential Instruction No. 1 Year 2006 on Provision and Utilization, of Biofuel as Other Fuel
Ministry of Energy And Mineral Resources Regulation No. 32 Year 2008
on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel
Priority supply and use of renewable energy, including
bioenergy.
Biofuel is targeted by 5% in 2025 in the national energy
mix.
Mandatory of biofuel utilization roadmap (biodiesel, bioethanol,
and biooil) in transportation, industry, commercial, and
electricity generation sectors
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. 4 Year 2012 and No. 19 Year 2013
Electricity Price (Feed-in Tariff ) for Bioenergy Based Power
Plant (Biomass, Biogas, and Municipal Solid Waste)
Energy and Mineral Resources for the People’s Welfare
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).
Bio-Refinery Distribution
Distribution
Distribution
Integrated
Generator
BIOENERGY CONVERSION INSTALLATION
• Bio-Gassification
• Anaerob Digestion
1. Biodiesel
2. Bioethanol
3. Biooil
Biogas
Bio-Briquettes/Pellet
Electricity
Bio-Briquettes
Bio-Cook Stove
Energy and Mineral Resources for the People’s Welfare
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.
Energy and Mineral Resources for the People’s Welfare
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).
Energy and Mineral Resources for the People’s Welfare
1. BIOFUEL
Biodiesel: 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.
Bioethanol: 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.
Energy and Mineral Resources for the People’s Welfare
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
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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
DEVELOPMENT OF BIOMASS ELECTRICITY
2010 – 2015
Note:
- CF = 70%
Energy and Mineral Resources for the People’s Welfare
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%
Energy and Mineral Resources for the People’s Welfare
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)
PURE PLANT OIL (Minimum)
Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025
Industry and
Transportation (low
and medium speed
engine)
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%
Energy and Mineral Resources for the People’s Welfare
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
Energy and Mineral Resources for the People’s Welfare
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
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives ...(4/4)
Energy and Mineral Resources for the People’s Welfare
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
Energy and Mineral Resources for the People’s Welfare
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
Energy and Mineral Resources for the People’s Welfare
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:
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.
1. Feedstock
Energy and Mineral Resources for the People’s Welfare
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.
2. Technology and process
VI. STEP FORWARD: Effort to Support Bioenergy Development ...(3/4)
Energy and Mineral Resources for the People’s Welfare
VI. STEP FORWARD: Effort to Support Bioenergy Development ...(4/4)
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.
3. End user
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.
4. Incentives and Mandatory
Energy and Mineral Resources for the People’s Welfare
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.
Energy and Mineral Resources for the People’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