Transcript FINANCING MECHANISM TO RENEWABLE ENERGY IN INDONESIA

RENEWABLE ENERGY POLICY IN
INDONESIA
Andi Novianto
Presented at APEC EGNRET Meeting
Honolulu, March 29-April 3, 2009
Energy Mix Situation:
Hydro Power
3,7%
Geothermal
Other Renewable
3,0%
Energy
0,2%
Coal
21,5%
Oil
52,5%
Natural Gas
19,0%
2
Industry is The Largest Consumption of Energy:
Household
12,8%
Commercial
4,0%
Others
4,7%
Transportation
30,5%
Industry
47,9%
3
PETROLEUM FUELS CONSUMPTION :
Commercial
1,7%
Electricity
11,3%
Household
15,0%
Industry
21,9%
Transportation
50,0%
4
TARGET ENERGY MIX 2025 :
Other Renewable
Energy
GeothermalCoal Liquefaction
5%
2%
Natural Gas
5%
Biofuel
30%
5%
Oil
20%
Coal
33%
5
NATIONAL ENERGY PLANNING to 2025:
- Population Increase:
- Increase in Economic
Growth:
- Increase in Living Standard
- Energy Demand Increase
- Electricity Demand
Increase
Environmental Issue:
- Global Warming
- Air Pollution
- Acid Rain
- Health
TYPE OF ENERGY SELECTION
Environment
INFRASTRUCTUR
ENERGY RESOURCES
COAL
GEOPOLITIC
ECONOMY
NEW AND RENEWABLE ENERGY
Fosil Energy
OIL
SOCIAL-CULTURE
Gas
BASED ON NATURAL RESOURCES
Nuclear
Hiydro,
Microhydro
Solar, wind,
biofuel,
geothermal,
hidrogen, FC
BASED ON TECHNOLOGY
6
ENERGY POLICY FRAMEWORK:
SUPPLY
GUARANTEE
PRODUCTION/
CONSERVATION
Economic
Activity
National
Security
SHIFTING PARADIGM
ENERGY ROLE
SUPPLY POLICY
ENERGY PRICE
DIRECT
SUBSIDY
DIVERSIFICATION
DEMAND POLICY
ENERGY SECURITY
PRODUCTION/
EXPLORATION
PEOPLE’S
AWARENESS
CONSERVATION
(EFFICIENCY)
7
RENEWABLE ENERGY POTENCY:
NON FOSSIL
ENERGY
RESOURCES
UTILITY CAPACITY
Hydro Power
75,670 MW
4,200 MW
Geothermal
27,000 MW
1,042 MW
Mycro Hydro
450 MW
210 MW
49,810 MW
445 MW
Solar Energy
4,80 kWh/m2/day
12 MW
Wind Energy
3-6 m/second
2 MW
Biomass
New and Renewable Energy Development
TARGET:

Short & Medium Term :
- Small scale for fulfilling basic energy need for rural area
- Intensification use of hydro, geothermal, solar
and win energy for electricity generation
- Development of Biofuel

Long Term :
- Development of new energy (fuel cells, hydrogen)
- Development of Nuclear Energy
- Development of Unconventional energy sources
(tar/oil sand, biogenic gas, etc)

In the year 2025 :
At least 15% of the energy mix should be based on renewable
energy (Presidential Decree 5/2006)
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RENEWABLE ENERGY
DEVELOPMENT
1.
Electricity generation
◦
◦
2.
Fuel
◦
◦
3.
Generated from new renewable energy sources such as
microhydro, solar, wind, biomass;
Priority for diesel fuel substitution for electricity
generation in rural area and for rural electrification
Currently, it is generated from biomass;
Priority for petroleum-based fuel substitution in
transportation sector and kerosene substitution in
household sector
Thermal/mechanical energy uses
◦
◦
◦
Can be generated from mostly renewable energy sources;
Current applications are for agricultural food processing,
water pumping;
Technologies are suitable for rural implementation.
10
RENEWABLE ENERGY PROGRAM (1)
1. Program on Rural Electrification : to provide access on electrification
for rural communities; since 2005 the government has been decided not
to utilize diesel genset and only to implement locally available renewable
energy (if the extension of grid is impossible).
2. Program on Interconnention of Renewable Energy Power
Generation : as an innitiative for investor to develop small/medium scale
power generation from renewable energy to sell of electricity to PLN
(state electricity company) with standardized price following government
regulation.
3. Integrated Microhydro Development Program (IMIDAP) : a hibah from
GEF through UNDP for 2007-2012 to acclerate microhydro
implementation by removing existing barriers.
4. Micro Hydro Power Program (MHPP) : technical cooperation with
Germany through GTZ to develop capacities on technology and
sustainability of microhydro implementation.
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Renewable Energy Program (2)
5. Program on Urban Solar : launched in 2003 to support solar
photovoltaic implementation in urban society. The results are not
significant yet
6. Program on Biogas : launched in January 2008 in cooperation
with Dutch government; consists of technical assistance and
financing mechanism development system.
7. Program on Energy Self-Sufficient Village : launched in 2007
to improve energy security on village level by diversifying rural
energy mix; developing locally available renewable energy sources
in the form of fuel (biofuel) and electricity for household and also
productive end uses.
8. Program on regulation preparation : as mandated by
Energy Law.
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☼ Self-sufficient Energy Village (SSEV) Program
 SSEV is a village having capability to produce a
part/whole their energy demand for consumptive and
productive use.
 CRITERIA
− Utilization of locally available energy (renewable energy)
− Creation of productive activities
− Job creation
 PROGRAM:
–
–
–
–
Utilization of locally available energy resources
Development of productive activities
Development of applicable technologies
Development of institution and people participatory
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ELECTRICITY OBJECTIVES:

INCREASE ELECTRIFICATION IN
HOUSEHOLD SECTORS (RURAL URBAN) AND INDUSTRY IN EFFICIENT
AND ENVIRONMENTAL WAYS TO
SUPPORT ECONOMIC GROWTH AND
PEOPLES’ WELFARE.
ELECTRIFICATION RATIO
NAD
72,65%
Category :
> 60 %
Sumut
85.76%
41 - 60 %
Kalteng
49.87%
Riau + Kepri
63.15%
Sumsel
50.75%
Sumbar
68.75%
Kaltim
66%
Sulteng
51%
Sulsel
60.81%
Kalsel
67.38%
Lampung
49.23%
Banten
58.44%
Electrificatio
n Ratio
Jabar
63.40%
Sulut
61.84%
Malut
54.15%
Jakarta
100%
Bengkulu
50.64%
Gorontalo
43.31%
Kalbar
53.74
%
Babel
69.27%
Jambi
47.03%
20 - 40 %
Jateng
63.77%
Jatim
63.67%
Jogya
74.37%
1980
1985
1990
8%
16%
28%
Sultra
43.88%
Bali
78.37%
NTB
30.48%
NTT
26.35%
Maluku
58.06%
Papua + Irjabar
35.35%
Year
Rasio
Elektrifikasi
: 63.9%
1995
2000
2005
2006 2007 2008
43%
53%
62%
63% 64 % 64.5
15
ELECTRICITY SOURCES:
GEOTHERMAL; 7%
NATURAL GAS; 12%
FUEL; 22%
HYDRO, 8%
COAL; 51%
ELECTRICITY UTILIZATION SHARE:
ELECTRICITY SYSTEM :




Power
Generator
Transmission
Grid

Users
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SALES TARGET BY PLN-2008 (TWh) :
6%
41%
36%
17%
Household
Commercial
Industry
Public
ELECTRICITY BY REGION :
20%
80%
JAWA-MADURA-BALI
OUTSIDE Jawa-Madura-Bali
GOVERNMENT SUBSIDY :
160
140
Rp. Trillion
120
100
80
60
40
20
0
2005
2006
2007
Electricity
Fuel/LPG
2008
SUPPORT POLICY TO RENEWABLE ENERGI:
Non Fiscal Incentives through Regulation.
 Support Small-Medium Scale Power
Connection Program at Medium and Low
Grid.
 Non Uniform Tariff, based on Region,
Peoples’ Capability, and Sources.
