POLICY ON SOLAR AND BIOENERGY...

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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


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


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


Policies and Regulations on NRE Development


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


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


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


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


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


The Development of Off-Grid Renewable Energy


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


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


Potential for Bioenergy Development in Indonesia

15


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


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


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


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


Closing


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.


THANK YOUMINISTRY OF ENERGY AND MINERAL RESOURCES

Jl. Medan Merdeka Selatan No. 18, Jakarta

DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION

Jl. Pegangsaan Timur No.1 Menteng, Jakarta

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