Geothermal Energy Development in Indonesia

Herman Darnel IbrahimDr [ITB Indonesia] M Sc [UMIST Manchester] Ir [ITB]Dr. [ITB, Indonesia], M.Sc. [UMIST, Manchester], Ir. [ITB]

Member of National Energy Council of Indonesia Vice Chairman of Expert Board of Indonesian Renewable Energy Society

Board Member of IGA and Chairman of IGA Western Pacific Regional Branch

Presented at World Geothermal Energy Summit 2011Arc Media Global, Manila, 8 December 2011

Manila, 08.12.11 Indonesian Geothermal Development 2

Part1:IndonesiaEnergyandRenewableEnergy Development at PresentEnergyDevelopmentatPresent

Arc Media Global, Manila, 08.12.11 Indonesian Geothermal Development 3

IndonesianDemographyandEnergyUtilization

Features Total[2009]

% ofWorld

WorldRank[2009] World Rank

LandArea 1.9 Millionsq km

1.3 16sqkm

Population 230Million.

3.41 4RepublicIndonesia

GDP $540Billon

0.95 18p

Electricity 150TWh

0.9 15

E 150 1 5 13Energy 150MTOE

1.5 13

Manila, 08.12.11 Indonesian Geothermal Development 4

EnergyResources,ProductionandUtilization

Oil Gas Situation2009 Coal RE*InMillionTonOilEquivalent[MTOE]

7961 8285 Resources 51571 6061125 3954 Reserve 10384 NA628 2824 Proven Reserve 2651 NA48 7 75 8 Production 125 9 13 9 br

ahim

48.7 75.8 Production 125.9 13.937.0[24 0]

0[43 2]

Import[Export]**

0.03[97 5]

0

®HDarnelIb

[24.0] [43.2] [Export]** [97.5]59 26.2 Consumption 26.7 13.9 Co

pyright

•IncludingBiomassinMTOEperYear**CrudeandRefinedOilS f D t I d i E d E St ti ti 2009 MEMR

Manila, 08.12.11 Indonesian Geothermal Development 5SourceofData:IndonesiaEnergyandEconomyStatistic2009,MEMR

RenewableEnergySupplyandCarbonEmissionEnergy Unit Indonesia* World**PrimaryEnergyConsumption MTOE 159.9 10583RenewableEnergy[RE] MTOE 7.7 547RenewableEnergyShare % 4.8 5.1FossilEnergy MTOE 152.2 9308FossilEnergyShare % 95.2 88.1OilEnergy MTOE 79.1 3846OilEnergyShare % 49.5 36.3El t Sh i Fi l E % 12 1 19 2Electr.ShareinFinalEnergy % 12.1 19.2CO2Emission MillionTon 456 27347CO 2 per TOE Primary Energy Ton 2 85 2 58

Source:HandbookofEnergyandEconomicStatisticsinJapan2009,TheEDMCJapan

CO2perTOEPrimaryEnergy Ton 2.85 2.58CO2Emissionpercapita Tonpercapita 1.9 4.20

Manila, 08.12.11 Indonesian Geothermal Development 6

f gy p p*2010,**2006

CharacteristicofIndonesianRenewableEnergy

No Description Geo‐thermal Hydro Solar Wind Ocean BiomassWaste

BiomassBiofuel

1200 240 175M1 Potential 28GWe 75GWe 1200GWe 9GWe 240

GWe 50GWe 175Mkiloliter

2 SupplyCapability 25GWe 45GWe 120GWe 9GWe 12GWe 30GWe 95MTOE

S l I t it I t it C ti

3AvailabilityandBaseLoadCapability

Continuous[BaseLoad]

Seasonal[SemiBaseLoad]

Intermittent[LowDensity]

Intermittent[Low

Density]

Intermittent[Low

Density]

Continuous[BaseLoad]

Affectedby

Weather

4 CapacityScale MediumtoBig

SmalltoBig

SmalltoMedium

SmalltoMedium Small Medium NA

5 Technology Ready Ready Ready Ready RnD Ready Ready5 Readiness Ready Ready Ready Ready RnD Ready Ready

6 InvestmentCost MediumHigh

LowMedium High Medium

High High Medium NA

7 ProductionCost 50 80 30 120 200 500 50 140 NA 50 120 NA

Among all renewable energy sources only geothermal and

7 USDperMWh* 50‐80 30‐120 200‐500 50‐140 NA 50‐120 NA

*Source: REN21 Renewables 2010 Global Status Report

11.10.18 by HDI WREC 20110 Indonesian Energy Scenario and RE Perspective to

2050

7

Among all renewable energy sources only geothermal andbiomass has the base load capability.

REEnergyDevelopmentIssues

Electrificationratioandenergyconsumptionisstilll l l h frelativelylow:Choiceofprioritytogroworgogreen.

Subsidyofoilandelectricity:BarrierforREandLowC b d l t [ titi ]Carbondevelopment[competitiveness]

REprojectpreparationandreadiness:ResourcesInventory Survey [+Exploration] and Feasibility StudiesInventory,Survey[+Exploration]andFeasibilityStudies

Conflictinginlanduse:About80%ofgeothermalareinthearea of Forest Conservation and National ParkareaofForestConservationandNationalPark

Projectfunding:SmallPlayer[local]forSmalltoMediumScaleProjects,CreditWorthinessSca e ojects, C ed t o t ess

Manila, 08.12.11 8Indonesian Geothermal Development

DevelopmentProgressandOnGoingProjects

Energy NationalPotential

InstalledCapacity

YearlyProduction

OnGoingProjectPotential

[MWe]Capacity[MW]

Production[GWh]

Project[GW]

Geothermal 29,000 1,194 11,000 4,000Hydro 75,000 3,500 10,000 2,100MiniHydro 5,000 600 3,000 480SolarEnergy 1,200,000 12 18 70OceanEnergy 240,000 0 0 10Biomass[waste] 50,000 300 2,000 100WindEnergy 9,000 1 1 30Total 1,607,000 5,607 26,019 6,790Biomass[biofuel] 175Mkl NA 600000kl NoInfo

Manila, 08.12.11 Indonesian Geothermal Development 9

NationalEnergyCouncilandEnergyPolicyandPlanningg

Minister Energy Exec. Chairman

President As Chairman

Vice President Vice Chairman

Dewan Energi Nasional [DEN]National Energy Council Member:

Minister Transport

Minister Agriculture

Minister Industry

MinisterEnvir’ment

Minister Research

Minister Dev. Plan

Minister Finance

7 Ministers + 8 Stakeholder Rep.[SHR]

Academic SHR:TumiranRinaldy

Industry SHR:H. Darnel IbrahimEddie Widiono

Consumer SHR: H AgustiawanAgusman E

Environment SHR:Mukhtasor

Technology SHR:Widjajonoy g j j

National E

National E Pl

Energy Laws d

National L T

Energy Policy I l iEnergy

Policy [KEN]Energy Plan [RUEN]

and Regulation

Long Term Plan [RPJP]

Implementation Supervision

Central Govt.Departments

Energy SOEs [BUMN]

Private Energy Industries

Regional Government

Industry Large Users

Society Consumers

Energy Supply Security Economy [Competitiveness] Environmental Preservation

Manila, 08.12.11 Indonesian Geothermal Development 11

RenewableEnergyInstitutional

Ministry Ministry Ministry Ministry

NationalEnergyCouncilMinistryTransport

Ministry

MinistryEnvir’ment

Ministry DG DG

MinistryEnergy

Ministry Finance

Parliament

Ministry

Industry Research

Ministry

Electricity

DG

Oil&Gas

DG Coal&

ParliamentEnergy

Commissiony

Agriculturey

Dev. Plan

Implementing Agencies

New & RE Mineral

Provincial District “Supporting”AgenciesImplementingAgencies ProvincialEnergyAgency

DistrictEnergyAgency

g g

National Council of

Cli t ChRegulatingandLicensingAgencies

State OwnEnergy

PrivateEnergy

Energy Users and

Climate Change

12

EnergyCompanies

EnergyCompanies

and Societies

IndonesiaEnergyPolicy

EnergyPolicy[Current] InitiativesandProgramsDiversification • Geothermal,SolarEnergy,• MaximizeRenewableShare• MinimizeOilShareU C l d G t b i t

Biofuel,Biomass,Gasification,MiniHydroR Oil S b id• UseCoalandGastobringcost

down• RemoveOilSubsidy• CoalPP,GasforHouses

Conservation • CCGT PlantConservation• MaximizeRenewableShare• More Efficient Conversion

• CCGTPlant• LossReduction• Labeling, Energy AuditMoreEfficientConversion

• DemandandSupplySideEff’cy.Labeling,EnergyAudit

• MassTransportPricing • Removeoilsubsidy.g• MarketPricePrimaryEnergy• UniformElectricityPrice

b d l d l

y• Competitiononoildistributionb d f l

13

• SubsidyElectricityandOil • SubsidizeBiofuel

RenewableEnergyTargetandCommitment

Indonesia will voluntarily reduce its carbon emission of 26% by2020 [P id h G20 M i i B ]2020 [President speech at G20 Meeting in Boston].

Ministry of Energy set the target of new and renewable energyshare of 25% of the energy mix by 2025 [Vision 25 25]share of 25% of the energy mix by 2025 [Vision 25‐25].

Government is working to develop a regulation of Feed in Tariff forRE: Biomass Solar Energy and Minihydro [Mandate Price]RE: Biomass, Solar Energy and Minihydro. [Mandate Price]

National Energy Council recommends to set RE target in NationalEnergy Plan and to oblige producer to produce RE [MandateEnergy Plan and to oblige producer to produce RE [MandateQuota]

RE regulations is being reviewed by government to makeg g y gnecessary improvement and to remove the barriers [oil andelectricity subsidies].

Manila, 08.12.11 Indonesian Geothermal Development 14

RegulationPushingRenewableEnergy

EnergyLaw: PrioritizeRenewableEnergyandE i ll F i dl EEnvironmentallyFriendlyEnergy

MinisterDecree:ImportTaxExemptforREmachineryequipment Corporate Tax and VAT Incentive in RE Businessequipment,CorporateTaxandVATIncentiveinREBusiness.

MinisterDecree:Purchasingofgeothermalelectricityupto9.7centperkWh.p

MinisterDecree:ObligedUtility[PLN]topurchaseelectricityfromREsmallscalepowerplantupto10Megawatt.

PresidentDecree:Subsidizingbiodieselenergyfordomesticuse[allocatedRp2000perliter].

DG NREEC Decree: Audit Energy Obligation for energy user of DGNREECDecree:AuditEnergyObligationforenergyuserofmorethan6000TOEor69780MWh.

Manila, 08.12.11 15Indonesian Geothermal Development

Part 2: Geothermal Development in I d iIndonesia

First Geothermal Plant Was in 1978

The first survey by geothermalexperts is started in 1964,followed by more specificfollowed by more specificsurveys in 1968. Six explorationwells were drilled in Kamojangj gWest Java from 23 September to27 November 1972. The well No

Commemorative Geothermal Well No 6 Kamojang6 is then used for experimentalproduction well and the firstmonoblock of 250 kW was

Commemorative Geothermal Well No 6 Kamojang

monoblock of 250 kW wasinaugurated 27 Nov 1978. Thefirst commercial power plantp pKamojang 1 of 30 MW is thenbuilt, and was inaugurated in 29January 1983. Kamojang Geothermal Power Plant

17

Indonesian Geothermal Resource is Over 29000 MWe

Indonesia has an enormouspotential of geothermal Thepotential of geothermal. Thepotential are mainly located inSumatera, Java, Sulawesi, NusaTenggara and Maluku. The totalpotential identified in 276 areas is

th 29 038 MW Thmore than 29,038 MWe. ThePotential is classified as ProvenReserve: 2 288 MW Probable

Geothermal Potential in Indonesia Archipelago

Reserve: 2,288 MW, ProbableReserve: 1,050 MW, PossibleReserve: 12,529 MW. ThePotential classified as HypotheticResources: 4,391 MW and asS l ti R 8 780 MWSpeculative Reserve: 8,780 MW. Kamojang the First Geothermal Field, West Java

18

Manila, 08.12.11 Indonesian Geothermal Development 19

Geothermal Energy Resources 2009 [2011]

No. Location,Island

Resources [MWe] Reserve [MWe]Speculative Hypothetic Possible Probable ProvenSpeculative Hypothetic Possible Probable Proven

1. Sumatera 4,973 2,121 5,845 15 380

2. Java 1,960 1,771 3,265 885 1,8152. Java , , , ,

3. Bali and NT 410 359 973 - 15

4. Sulawesi 875 32 959 150 78

5. Maluku 370 37 327 - -

6. Kalimantan 45 - - - -

7. Papua 50 - - - -

Total 257 8,683 4,320 11,369 1,050 2,288Locations [276] 13,003 [13171] 14,707 [15867]

Total Indonesia 27,710 [29038]

Source: Directorate General of Mineral Coal and Geothermal Indonesia 200920

Location of Geothermal Energy Resources 2011

Source:BadanGeologi,MEMR2010

1 Sumatera 86 13 516 12

No. Island NumberofLocations

InstalledCapacity[MW]

Potential[MW]

ReadytoDevelopInitialSurveyLegend:

1 Sumatera 86 13,516 122 Java 71 10,092 1,1173 Bali 5 2964 NusaTenggara 22 1,4715 Kalimantan 8 1156 Sulawesi 55 2,519 60

InstalledDetailSurvey,

7 Maluku 26 9548 Papua 3 75

1,18929,038Total 276 21

PartiesInvolvedintheConcessionAward

MinisterofEnergyandMineralResourcesDecide:PriceandCompensationofData+PreFS

GuidanceandSupervision

GuidanceandSupervision

Tender

GovernorofProvince

pPriceofSteamandElectricity

pp

DecideConcession

CommitteePaying

Data+Pre FSPaying

Data+Pre FS

Bupati,MayorofDistrictDecide

Personnel

Tender

Data+PreFSCompensation

Except*

Data+PreFSCompensation

Except*

ConcessionA

PreFSbyGovernment

AppointmentLicensing• Exploration

Area[WKP] Tender

*PreFSbyPrivate

ppofWinner

p• FS• Exploitation

y[FirstRightRefusal]

22

Manila, 08.12.11 Indonesian Geothermal Development 23