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MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA ENERGY AS THE STRATEGIC RESOURCES TO FULFILL NATION’S GROWTH AND PROSPERITY, AND THE ROLE AND PROSPECT OF GEOTHERMAL By: Minister of Energy and Mineral Resources Indonesia International Geothermal Convention and Exhibition (IIGCE) 2014 “Enhancing Geothermal Development to Meet Energy Demand Through Policy Breakthrough” Jakarta , 4 June 2014 Energy and Mineral Resources for Peolple’s Prosperity I. INDONESIAN ARCHIPELAGO 3 II. BACKGROUND 4 III. GEOTHERMAL POTENTIAL RESOURCES 5 IV. POLICY AND LEGAL FRAMEWORK 7 V. CHALLENGES IN GEOTHERMAL DEVELOPMENT 10 VI. INVESTMENT OPPORTUNITIES 11 VII. CONCLUSION 12 Energy and Mineral Resources for Peolple’s Prosperity I. INDONESIAN ARCHIPELAGO Republic of Indonesia Republik Indonesia Flag National emblem Motto: "Bhinneka Tunggal Ika" (Old Javanese) "Unity in Diversity" National ideology: Pancasila Anthem: Indonesia Raya Area - Land - Water (%) Population - 2011 census Capital and largest city Official languages Jakarta 6°10.5′S 106°49.7′E Indonesian Density GDP (nominal) - Total - Per capita Source : Wikipedia (2013) Energy and Mineral Resources for Peolple’s Prosperity 1,904,569 km2 (15th) 735,358 sq mi 4.85 237,424,363 (4th) 124.66/km2 (84th) 322.87/sq mi $946.391 billion (16th) $3,816(105th) II. BACKGROUND CURRENT ENERGY CONDITION 2025 CURRENT CONDITION Gov. Reg. NO. 5/2006 Gas 20,1 % Oil Gas 30 % Coal 24,5 % Oil 20 % 49,7 % NRA 5,7% NRE 17 % INDONESIA AS NET OIL IMPORTER TOTAL PRIME ENERGY: 1176 JUTA BOE Note: NRE = New and Renewable Energy NEP = National Energy Policy NEB = National Energy Board Energy and Mineral Resources for Peolple’s Prosperity Coal 33 % III. GEOTHERMAL POTENTIAL RESOURCES (1/2) PLTP LAHENDONG: 80 MW PLTP SIBAYAK: 12 MW PLTP ULUBELU: 110MW PLTP GUNUNG SALAK: 377 MW PLTP WAYANG WINDU: 227 MW PLTP KAMOJANG: 200 MW PLTP DARAJAT: 270 MW PLTP DIENG: 60 MW PLTP ULUMBU: 5 MW No Island Number of Total Installed 12.837 9.757 1.872 145 3.153 1.071 75 28.910 122 1134 7,5 Location 1 2 3 4 5 6 7 Sumatera Java Bali-Nusa Tenggara Kalimantan Sulawesi Maluku Papua Total 93 71 33 12 70 30 3 312 Source: Geological Agency, MEMR (2013) Note: 80 1.343,5 Energy and Mineral Resources for Peolple’s Prosperity Preliminary Survey Ready to be developed Detail Survey Installed III. GEOTHERMAL POTENTIAL RESOURCES (2/2) Total : 58 GWA ACEH 2 WKP Jaboi: 70 MW Seulawah Agam: 130 MW NORTH SUMATERA 5 WKP Sibayak – Sinabung: 130 MW Sibual – Buali: 750 MW Sipaholon Ria-ria: 75 MW Sorik Marapi: 200 MW Simbolon Samosir : 155 MW NORTH SULAWESI 2 WKP Kotamobagu: 410 MW Lahendong-Tompaso: 358 MW GORONTALO 1 WKP Suwawa: 110 MW JAMBI 1 WKP Sungai Penuh: 70 MW SOUTH SUMATERA & LAMPUNG 1 WKP Danau Ranau: 210 MW WEST SUMATERA 4 WKP Bukit Kili: 83 MW Gn Talang: 35 MW Liki Pinangawan: 400 MW Bonjol: 200 MW NORTH MALUKU 2 WKP Jailolo: 75 MW Songa Wayaua: 140 MW SOUTH SUMATERA 2 WKP Lumut Balai: 250 MW Rantau Dedap: 106 MW BANTEN 2 WKP Kaldera Danau Banten: 115 MW G. Endut: 80 MW BENGKULU 2 WKP Tmbg Sawah-Hululais: 873 MW Kepahiyang : 180 MW LAMPUNG 4 WKP Gn.Rajabasa: 91 MW Suoh Sekincau: 230 MW Waypanas – Ulubelu: 556 MW Way Ratai :105 MW Lisence – Issued : 38 GWAs Tender on Progress : 2 GWAs Tender Preparation : 13 GWAs Tender – Failed : 5 GWAs WEST JAVA 10 WKP Ciater - Tgkban Perahu: 60 MW Cibeureum–Parabakti: 485 MW Cibuni: 140 MW Cisolok Cisukarame: 45 MW Gn. Tampomas: 50 MW Gn. Tgkuban Perahu: 100 MW Kamojang-Darajat: 1465 MW Karaha Cakrabuana: 725 MW Pangalengan: 1106 MW G. Ciremai: 150 MW BALI 1 WKP Tabanan: 276 MW CENTRAL SULAWESI 2 WKP Marana: 35 MW Bora Pulu : 152 MW WEST NUSA CENTRAL JAVA 5 WKP TENGGARA 2 WKP Baturaden: 175 MW Hu'u Daha: 65 MW Dataran Tinggi Dieng: 780 MW Sembalun : 100 MW Guci: 79 MW Gn. Ungaran: 100 MW EAST JAVA 3 WKP Umbul Telomoyo : 72 MW Blawan – Ijen: 270 MW Gn. Iyang Argopuro: 295 MW Telaga Ngebel: 120 MW CENTRAL JAVA & EAST JAVA 1 WKP Gunung Lawu : 195 MW Energy and Mineral Resources for Peolple’s Prosperity MALUKU 1 WKP Tulehu: 100 MW EAST NUSA TENGGARA 5 WKP Atadei: 40 MW Sokoria: 30 MW Ulumbu: 199 MW Mataloko: 63 MW Oka Ile Ange : 40 MW 6 IV. POLICY AND LEGAL FRAMEWORK (1/3) GEOTHERMAL BUSINESS PROCESS Determination of GWA Tender Process IUP Issuance Government/ Local Gov./ Business Entities Geothermal Potential Preliminary Survey Business Entities Exploration Feasibility Study Geothermal Business Permit (IUP) Note: - GWA : Geothermal Working Area (concession) Energy and Mineral Resources for Peolple’s Prosperity Exploitation Utilization Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi Energi Kementerian Energi dan Sumber Daya Mineral IV. POLICY AND LEGAL FRAMEWORK (2/3) Law No. 27/2003 On Geothermal. Government Regulation No. 59/2007 on Geothermal Bussiness Activities. Presidential Regulation No. 04/2010 on Assignment to PT. PLN (Persero) to Accelerate The Development of Power Plant from Renewable Energy, Coal and Gas Ministry Regulation of Minister of Energy And Mineral Resources 1) MR No. 11/2008 on the Procedure for GWA Determination 2) MR No. 02/2009 on Guidelines for Geothermal Preliminary Survey Assignment (as amendment of MR. 05/2007) 3) MR No. 11/2009 on Guidelines for Implementation of Geothermal Business , jo. MR No. 18/2012 4) MR No. 21/2013 on Revision of MR No. 15/2010 on The List of Power Plant Acceleration Projects Using Renewable Energy, Coal, and Gas and Related Transmission Energy and Mineral Resources for Peolple’s Prosperity IV. POLICY AND LEGAL FRAMEWORK (3/3) 1. Improving and harmonizing regulations in Geothermal Business; 2. Developing a comprehensive pricing structure; 3. Provide fiscal incentives for geothermal development; 4. Joint agreement between Ministry of Energy and Mineral Resorces and Ministry of Forest; 5. Acceleration program in electricity generation, geothermal power is expected to contributed 4,965 MW; 6. Government guarantees on the feasibility of PT. PLN. Energy and Mineral Resources for Peolple’s Prosperity V. CHALLENGES IN GEOTHERMAL DEVELOPMENT Land-use Issues Most identified reservoirs lie underneath forestry areas. It is estimated that up to 70 percent of the potential geothermal resources are located within forestry areas (conservation forest, protected forest and production forest). Solution: Improving and harmonizing regulations regarding geothermal (Amend Law No. 27/2003 on Geothermal). Pricing Electricity price from geothermal energy still considers has not reached its economic value; Solution: Restructure the tariff model based on region and commercial on date (New MR for new geothermal energy tariff). Energy and Mineral Resources for Peolple’s Prosperity VI. INVESTMENT OPPORTUNITIES Recent Updates: Determined of 9 new WKPs with potential of 1.030 MW: Graho Nyabu: 200 MW Gn. Talang – Bukit Kili: 65 MW Gn. Arjuno Welirang: 185 MW Gn. Pandan: 60 MW Gn. Wilis: 50 MW Songgoriti: 35 MW Gn. Gede Pangrango: 85 MW Gn. Hamiding: 265 MW Talaga Ranu: 85 MW 9 WKPs are going to be tendered in the near future; 12 Preliminary Survey Assignment on new prospect area. Energy and Mineral Resources for Peolple’s Prosperity VII. CONCLUSION Indonesia holds tremendous geothermal power potential; Installed capacity of geothermal power plant is only1,343.5 MW; Optimum utilization will significantly reduce dependence on fossil fuel and improve national energy security; Restructuring Geothermal Business to allow private participation in geothermal development; Whilst some supporting policies are in place, acceleration of geothermal development in Indonesia needs international support in terms of finance, technology, human resources as well as technical assistance. Energy and Mineral Resources for Peolple’s Prosperity MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540 e-mail: [email protected] www.ebtke.esdm.go.id Energy and Mineral Resources for Peolple’s Prosperity Direktorat Jenderal Energi Baru, Terbarukan dan Konservasi Energi Kementerian Energi dan Sumber Daya Mineral GEOTHERMAL DEVELOPMENT POLICY AND STRATEGIES ROADMAP OF GEOTHERMAL DEVELOPMENT UNTIL 2025 Road Map of Geothermal Development until 2025 can be described in the following table : Development Plan Installed (MW) Addition power plant capacity (MW) 1.343,5 Total Development Capacity (MW) 1.343,5 Development Plans (MW) 2012 115,0 2013 2,5 2014 62,0 2015 35,0 2016 279,0 2017 2018 2019 553,5 1.223,5 1.420,0 2020 890,0 2021 264,0 2022 339,0 2023 690,0 2024 30,0 2025 75,0 1.341,0 1.343,5 1.405,5 1.440,5 1.719,5 2.273,0 3.486,5 4.926,5 5.816,5 6.080,5 6.419,5 7.109,5 7.139,5 7.214,5 The development plans can be achieved with the following note: 1. To harmonized regulation across sectors (MEMR, Forestry, Finance, Local Government, etc.); 2. Simplification of licensing in the geothermal sector; 3. Optimizing the geothermal potential at large fields managed especially PGE’s GWA; 4. The price of electricity from geothermal energy, fit to the economic development of the field; 5. The policies of national banking that support geothermal development; Energy and Mineral Resources for Peolple’s Prosperity PERFORMANCE ACHIEVEMENTS OF GEOTHERMAL ENERGY SECTOR DEVELOPMENT YEARS 2009 – 2014 Prominent development / leading program for geothermal sector for the last 6 years are : 1. 58 Geothermal Working Areas (GWA) has been stated consist of : 19 existing GWA; dan 39 GWA after Indonesian Law No 27 Years 2003. 2. Geothermal power plant Installed capacity reached 1,343,5 MW in 2014; 3. Total steam production from 2009 to 2014 reached 419,868,437 Tons; 4. Total electricity production from 2009 to 2014 reached 56,452,771 MWh; 5. Realization of Investment from 2009 to 2013 reached IDR. 21.16 Trillion; 6. Realization of Revenues of Government Shares Realisasi from 2009 to 2013 reached IDR 4.734,76 Billion, consist of: Component of Tax amount IDR 1,499.57 billion ; State revenue (non-tax revenue) amount IDR 2,045.78 billion. Energy and Mineral Resources for Peolple’s Prosperity PERFORMANCE ACHIEVEMENTS OF GEOTHERMAL ENERGY SECTOR DEVELOPMENT YEARS 2009 – 2014 Tahun No. Indikator Kinerja Satuan 2009 2010 2011 2012 2013 2014* 5 3 5 8 6 6 1.189 1.189 1.226 1.336 1.343,5 1.405,5 68.059,9 69.391,2 68.723,4 68.769,7 69.295,6 75.628,4 1. GWA Determination Amount GWA 2. Geothermal Power Plant Installed Capacity MW 3. Steam Production Thousands Ton 4. Electricity Production GWh 9.184 9.259 9.253,8 9.355,9 9.332,3 10.067,6 5. Realization of Investment IDR Billion 2.437 2.327 2.457 2.077 4.514 7.348 6. Revenues of Government Shares IDR Billion 821,15 803,36 898,46 1.140,00 1.071,79 579,65 Note : Currency 1 USD = IDR 12.000 *) Target Energy and Mineral Resources for Peolple’s Prosperity