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MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Rida MulyanaRida MulyanaDirector General of New Renewable Energy and Energy Conservation

Energy and Mineral Resources for People’s Welfare

Tokyo, March 27th 2013

I. ENERGY POLICY 3

II. NATIONAL PRIMARY ENERGY MIX TARGET 4

III EFFORTS TO INCREASE NRE UTILIZATION 6III. EFFORTS TO INCREASE NRE UTILIZATION 6

IV. NRE DEVELOPMENT AND UTILIZATION STRATEGY 8

V. STRATEGIC ISSUES IN RELATION WITH JAPAN 9


1. ENERGY CONSERVATION: to increase energy efficiency onsupply and demand side e g industrial sector transportationsupply and demand side, e.g industrial sector, transportation,household and commercial.

2 ENERGY DIVERSIFICATION: to increase the share of new2. ENERGY DIVERSIFICATION: to increase the share of newrenewable energy use in the primary energy mix. e.g:

RENEWABLE ENERGYNEW ENERGYa. Geothermal,b. Hidro,c. Bioenergy,

NEW ENERGYa. Liqiufied Coalb. Coal Bed Methanec. Gasified Coal c. Bioenergy,

d. Solar,e. Wind, f Ocean wave and current

c. Gasified Coald. Nucleare. Hidrogenf Others methane


f. Ocean wave and current.f. Others methane

CURRENT CONDITION2011

2025 TARGETPRESIDENTIAL REGULATION NO. 5/2006

OilCoal

23.91%Coal33%

Natural Gas 30%46.77%Natural Gas

24.29%Oil20%

Natural Gas 30%

NRE; 17%NRE; 17%

NRE5.03%

ENERGY ELASTICITY= 1,65 ENERGY ELASTICITY LESS THAN 1 IN 2025

Biofuel5%

Geothermal 5%

Nuclear, Hydro, Solar, Wind,

and Other NRE 5%

LiquifiedCoal 2%


ENERGY ELASTICITY 1,65NON FOSSIL ENERGY SHARE≈ 5%

ENERGY ELASTICITY LESS THAN 1 IN 2025OPTIMIZING NEW RENEWABLE ENERGY SOURCES

NO NEW RENEWABLE ENERGY RESOURCES INSTALLED CAPACITY (IC)RATIO OF

IC/RESOURCES (%)

1 2 3 4 5 = 4/3

1 Hydro 75,000 MW 6,848.46 MW 9.13%

2 Geothermal 29,164 MW 1,341 MW 4.6 %

3 Biomass 49,810 MW 1,644.1 MW 3.3%

4 Solar 4.80 kWh/m2/day 27.23 MW -

5 Wind 3 – 6 m/s 1 4 MW -5 Wind 3 6 m/s 1.4 MW

6 Ocean 49 GW ***) 0.01 MW ****) 0%

7 Uranium 3,000 MW *) 30 MW **) 0%

*) Only in Kalan – West Borneo**) A t f h

***) Source: National Energy Council****) BPPT’ P t t**) As a center of research, non-energy ****) BPPT’s Prototype

NO FOSSIL ENERGY RESOURCESPROVEN RESERVES

(PR)

RATIO OF PR/RESOURCES

(%)

PRODUCTION(PROD)

RATIO OF PR/PROD(YEAR)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Oil (billion barel) 7,408.24 3,741.33 0.505 0.314 12

2 Gas (TSCF) 150.70 103.35 0.685 2.98 35

3 Coal (billion ton) 161.3 28.17 17 0.317 89

4 Coal Bed Methane (TSCF) 453.3 - - - -


( )

5 Shale Gas (TSCF) 574 - - - -

1. IMPROVING POLICY AND REGULATIONSome sub-sectors of renewable energy still has not been set. Therefore, the Government continuesto improve the regulation of development and utilization of renewable energy, including thepreparation of draft government regulations of new renewable energy;

2. CREATING MARKETthrough the supply and utilization of biofuel, obligating National Electric Company (PT PLN) to buy

l t i it th li ti f I d i N ti l St d d (SNI) telectricity, the application of Indonesian National Standard (SNI), etc;3. SUBSIDY

Subsidy for biofuel has been running since 2009. Subsidies are provided on the difference in fuelprices with biofuel prices distributed through Pertamina;prices with biofuel prices, distributed through Pertamina;

4. FEED-IN TARIFFDeclared through the Minister of Energy and Mineral Resources Regulation, that regulate the sellingprice of electricity from renewable energy purchased by National Electric Company. There should bep y gy p y p yno negotiations;

5. PROVIDING INCENTIVES AND FACILITIESReduction of taxes and customs duties, licensing procedures more simple;


For power plants up to 10 MW will be sold to PLN, no need to go through a tender process

6. THE FUNDING AND OTHER SUPPORTINGProviding fund to improve energy acess in remote and isolated area

7. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCESEducation and training in the field of renewable energySocialization;Improving NRE networks, supporting the establishment of organization/association (IKABI, METI);

8. INCREASING RESEARCH IN THE FIELD OF NEW RENEWABLE ENERGYIncrease research cooperation;Increase kind of research;

9 INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION9. INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATIONCooperation for capacity buildingCooperation for technology transferLessons learned for the implementation of new renewable energy policies and programsp gy p p gIncrease new renewable energy market (biofuel), and technology for NRE component (small-scale turbine)abroad.


1. Improvement of the national electricity supply through the development ofGeothermal and Hydro Power Plant;

2. Improvement of the electricity access in remote areas, small islands and borderareas with Micro Hydro and Solar Power Plant;

3 De elopment of Bioenerg Po er Plant incl ding agric lt ral aste and3. Development of Bioenergy Power Plant including agricultural waste andmunicipal solid waste to provide electricity as well as to improve theenvironmental;

4. Development of wind power and ocean energy plant pilot project in order toprepare the stage of commercialization;

5. Utilization of Biofuel (solid, gas and liquid) for substitution of fuel oil;6. Development of new energy (CBM and shale gas) commercially and use of the

conventional energy bussiness regulation and practice;


conventional energy bussiness regulation and practice;

1. To improve and increase the investment through the newrenewable energy partnership;

2 T d l ti t h l t f2. To develop cooperation on technology transfer on newrenewable energy technologies and energy conservationpartnership;partnership;

3. To continue the implementation of the carbon offsetmechanism;mechanism;


Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540

MINISTRY OF ENERGY AND MINERAL RESOURCESDIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Energy and Mineral Resources for People’s Welfarewww.ebtke.esdm.go.ide-mail: [email protected]

GEOTHERMAL FEED-IN TARIFF

1. CURRENT CONDITIONHydro Power Plant installed capacity: 5,711 MWGeothermal Power Plant installed capacity: 1,341 MW NO AREA

PRICE (cent US$/kWh)

HIGH VOLTAGEMEDIUMVOLTAGE

GEOTHERMAL FEED-IN TARIFF(MEMR Regulation No. 22/2012)

2. DEVELOPMENT PROGRAMImproving coordination with permitting authorithy;Harmonizing regulation in the field of geothermal andhydropower;

1 Sumatera 10 11,52 Jawa, Madura and Bali 11 12,53 South Sulawesi, West Sulawesi

and Southeast Sulawesi12 13,5

4 North Sulawesi, Central Sulawesi, 13 14,5Providing technical guidance, socialization and workshops inorder to improve the quality of human resourcesAccelerating the Phase II of 10,000 MW ProgramIncreasing investment in geothermal energy sub-sector with:

4 North Sulawesi, Central Sulawesi,and Gorontalo

13 14,5

5 West Nusa Tenggara and EastNusa Tenggara

15 16,5

6 Maluku and Papua 17 18,5

Increasing investment in geothermal energy sub-sector with:• Selling price of electricity (Feed-in Tariff);• Auction of Geothermal Working Areas (GWA) under the

authority of the Central Government (Mount Lawu andR L k )

ROAD MAP OF GEOTHERMAL DEVELOPMENT 2006 - 2025 (As In Presidential Regulation NO. 5/2006 about National Energy Policy)

Ranau Lake);• Development of 4 sites of geothermal project (exploration

drilling) ;• Promotion, dissemination of information and cooperation


in geothermal side;

NO RENEWABLE ENERGY STRATEGIC ISSUE1 GEOTHERMAL- 6 STRATEGIC

ISSUES1. Accelerating geothermal development2. Processing the revise of Laws No. 27 Year 2003 about Geothermal3 The second change of Government Regulation No 59/2007 jo Government Regulation 70/2010 ISSUES 3. The second change of Government Regulation No. 59/2007 jo. Government Regulation 70/2010

about Geothermal Working Activity4. Revise MEMR Regulation No. 11/2009 about Implementation Guidelines for Geothermal

Operations5. Total production of geothermal steam6 The n mber of non ta re en es of the Geothermal6. The number of non-tax revenues of the Geothermal

2 BIOENERGY - 6 STRATEGIC ISSUES

1. Feed in Tariff (FIT) in utilization of Municipal Solid Waste for power plant2. Increased utilization of Biofuels to be mixed with PSO fuel 3. Increased utilization of Biofuels to be mixed with non PSO fuel 4. Increased ability to supply bioenergy for domestic needs5. Increase bioenergy power plant installed (on-grid)6. Enhancing the role of NREEC in regional development through the development of Self

Sufficient Village Program (Desa Mandiri Energi)-based biofuel3 VARIOUS NEW AND RENEWABLE

ENERGY 6 STRATEGIC ISSUES1. Increased national electrification ratio through the utilization of various new and renewable

energy;ENERGY - 6 STRATEGIC ISSUES gy;2. Development of Self Sufficient Village Program through the utilization of solar and hydro energy;3. Encourage private sector participation in the utilization of wind, hydro and solar energy;4. Harmonization of inter-sectoral policies related to renewable energy development5. Sustainability of NRE power plant6. Increase power plant capacity of NRE


p p p y

1. CURRENT CONDITIONMicro Hydro Power Plant installed capacity: 230 MW HYDRO POWER, SOLAR AND WIND POWER FEED IN TARIFF

(MEMR REGULATION NO 4 YEAR 2012)

Solar Power Plant installed capacity: 27.23 MW2. DEVELOPMENT PROGRAM

Encouraging investment in Micro Hydro and Solar PowerPl t th h ti (K i) i t d th

WILAYAHPrice for

High Voltage (Rp/kWh)

Price for Medium Voltage

(Rp/kWh)

Jawa and Bali 656 1,004Plant through cooperative (Koperasi), private and otherbusiness enterprises in electricity supply basedrenewable energy, through the establishment of feed-intariff (for on-grid system ) for Micro Hydro and Solar

Sumatera and Sulawesi 787 1,205

Kalimantan, West andEast Nusa Tenggara

853 1,305

Maluku and Papua 984 1,506( g y ) yPower Plant appropriate economic priceEncouraging capability of domestic manufacturer;Improving capacity building and technical assistance;

FiT is still in subject to revisedMini and Micro Hydro will be increase from Rp. 656/kWh to Rp. 975 – 1,050/kWh

Providing governmnet fund (APBN) Solar will be increase from Rp. 1,880 – 3,135/kWh


1. CURRENT CONDITIONBioenergi power plant (on-grid) installed capacity: 71MW

BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE FEED-IN TARIFF(MEMR REGULATION NO. 04 YEAR 2012)

NO. ENERGY CAPACITY ELECTRICITY BUYING PRICE NOTESMiedium Voltage

1 Biomass until 10 MW Rp 975 / kWh X FBioenergi power plant (off-grid) installed capacity :612 MW

2. DEVELOPMENT PROGRAM

1. Biomass until 10 MW Rp. 975,- / kWh X F

2. Biogas until 10 MW Rp. 975,- / kWh X F Non MSW

3. Municipal Solid Waste (MSW) until 10 MW Rp. 1050,- / kWh Zero waste

4. Municipal Solid Waste until 10 MW Rp. 850,- / kWh Landfill

The selling price of electricity (feed in tariff) based oneconomic price;Export management to secure the supply of biomasspower plant feedstock;

Low Voltage

1 Biomass s.d 10 MW Rp. 1.325,- / kWh X F

2 Biogas s.d 10 MW Rp. 1.325,- / kWh X F Non MSW

3 Municipal Solid Waste (MSW) s.d 10 MW Rp. 1.398,- / kWh Zero waste

power plant feedstock;Duty exemption of renewable energy equipment andease of the procedure ;In cooperation with local governments and

4 Municipal Solid Waste s.d 10 MW Rp. 1.198,- / kWh Landfill

Incentive Factor (F):Jawa, Bali, Sumatera : F = 1Kalimantan, Sulawesi, West and East Nusa Tenggara : F = 1,2Maluku and Papua : F = 1,3In cooperation with local governments and

stakeholders to increase understanding related to theutilization of waste into electricity as well as a meansto drive product domestic.

Palm Shell

Municipal Soild Waste Power

Plant14,5 MW (19%)

Bioenergy Power Plant Installed Capacity


Power Plant61 MW (86%)

1. CURRENT CONDITIONWind Power Plant installed capacity : 1.4 MW.Ocean Current/waves still in pilot project, some small-scale pilot (10 kW) are built,e.g at Baron Beach, NTTe.g at Baron Beach, NTT

2. DEVELOPMENT PROGRAMConducting feasibility study and pilot project for wind and ocean currents/wavespower plant in the potencial area e g East Nusa Tenggarapower plant in the potencial area, e.g East Nusa Tenggara.Increasing foreign partnership in terms of capacity building, technology transfer inthe development of Wind and Ocean Currents/Waves Power PlantEncouraging domestic industrial competitiveness to manufacture components ofwind and ocean currents/waves power plantDeveloping policies Feed-in Tariff for electricity from wind power plant


Developing policies Feed in Tariff for electricity from wind power plant

1. CURRENT CONDITIONFuel mixture with biofuels in the transportation sectorby 7.5% and 2% to the industrial sector;

NATIONAL BIOFUEL PRODUCTION2009 – 2013

Installed capacity for biodiesel is 4.2 million kL andproduction about 2 million kL;Construction of household biogas digester for cookingas much as 8,446 units;

2. DEVELOPMENT PROGRAMFormulating biofuels market index price based oneconomic priceeconomic price;Accelerating biofuels distribution infrastructure;Reducing cost of biogas investment through specificfunding scheme (Goverment fund (DAK) soft loansfunding scheme (Goverment fund (DAK), soft loans,social assistance);Providing incentives (eg, tax reduction, greencompany award)


p y )

PRODUCTION COSTThe production cost is relatively higher than the conventional energy, so it’s difficult to compete with the conventionalenergy

INVESTMENTINVESTMENTThe investment cost is quite high. However, investment in new renewable energy industry is quite in demand bydomestic investorsInvesting for upstream and downstream is not widely carried out in the country, so most of the components are stillg p y y, pimported;

TECHNOLOGYSome of technologies have been able to developed domestically, such as small to medium-scale power planttechnologies and biogas technology (non electric);technologies and biogas technology (non-electric);Renewable energy technologies are still provided by the foreign;

RAW MATERIAL AVAILABILITYThe potential of new renewable energy in Indonesia is very large. However, it still required integrated management inp gy y g , q g gthe supplying and processing raw materials, especially for bioenergy feedstock;

HUMAN RESOURCEQuantity and quality of human resources in the field of renewable energy is still quite limited;P l ’ t f bl i till l ti l l i t f l f l f t bl i


People’s acceptance for new renewable energy is still relatively low, since most of people feel more comfortable usingconventional energy

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