1 MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION SOLAR PV FEED IN TARIFF IN INDONESIA : REGULATION AND FRAMEWORK CONDITIONS Directorat of Various New Energy and Renewable Energy Berlin, March 4 th, 2014
2 I. INDONESIA ENERGY CONDITION 3 II. ENERGY POLICY 5 III. NATIONAL PRIMARY ENERGY MIX TARGET 6 IV. EFFORTS TO INCREASE NRE UTILIZATION 7 V. POLICY OF SOLAR PV 8 VI. DEVELOPMENT OF SOLAR PV 9 VII. CURRENT STATUS ON ELECTRICITY TARIFF OF SOLAR PV 10 VIII.OBSTACLES AND CHALLENGES 14 IX. CONCLUSION 15
3 Natural Gas 24,29% NRE 5,03% Crude Oil 46,77% Coal 23,91% Share of Non Fossil Energy 5% 1. National energy mix on 2012: 1237 Million BOE. 2. The average of growth rate of energy consumption is 7% per year; 3. High dependence on fossil energy (94,97%, but its reserves are more limited); 4. RE utilization and energy conservation implementation is not optimized yet; 5. Public access to energy (modern) is still limited: a. Electrification ratio of year 2012 is % (23.53 % of households not yet electrified); b. Less of development of energy infrastructure particularly in rural / remote areas and outer islands. 6. Linkage to environmental issues: a. Mitigation of climate change; b. National commitment to reducing emissions 26% by Funding for energy development is limited. 3
4 Aceh 89,75% Sumbar 78,84% Sumut 88,71% Riau 85,45% Kepri 83,56% Sumsel 77,55% Kalbar 75,62% Kalteng 63,51% Sulbar 70,13% Kaltim 74,40% Gorontalo 65,37% Sulteng 69,97% Sulut 80,24% Malut 76,75% Category : > 60 % % % Papua Barat 62,97% Jambi 72,39% Babel 97,96% Bengkulu 85,13% Lampung 74,70% Banten 87,04% Jakarta 100% Kalsel 79,96% Bali 77,31% Sulsel 80,47% Sultra 61,99% Maluku 72,85% Papua 35,17% Jabar 79,05% Jateng 83,95% DIY 79,59% Jatim 77,91% NTB 62,04% NTT 57,58% REALISASI RENCANA Sep-13 Des Rasio Elektrifikasi 63.00% 64.34% 65.10% 65.79% 67.15% 72.95% 76.56% 80.16% 79.30% 81.40% Target RPJM 67.20% 70.40% 73.60% 76.80% 80.00% ESDM Energy untuk and Kesejahteraan Mineral Resources Rakyat for People s Welfare
5 1. ENERGY CONSERVATION : to increase energy efficiency on supply and demand side, e.g industrial sector, transportation, household and commercial. 2. ENERGY DIVERSIFICATION : to increase the share of new renewable energy use in the primary energy mix. e.g: NEW ENERGY a. Liquefied Coal b. Coal Bed Methane c. Gasified Coal d. Nuclear e. Hydrogen RENEWABLE ENERGY a. Geothermal, b. Hydro, c. Bio energy, d. Solar, e. Wind, f. Others methane f. Ocean wave and current.
6 CURRENT CONDITION TARGET PRESIDENTIAL REGULATION NO. 5/2006 Oil 46.77% Coal 23.91% Natural Gas 24.29% Oil 20% Coal 33% Natural Gas 30% NRE; 17% NRE 5.03% ENERGY ELASTICITY= 1,65 NON FOSSIL ENERGY SHARE 5% Biofuel 5% Geothermal 5% Nuclear, Hydro, Solar, Wind, and Other NRE 5% Liquified Coal 2% ENERGY ELASTICITY LESS THAN 1 IN 2025 OPTIMIZING NEW RENEWABLE ENERGY SOURCES
7 1. IMPROVING POLICY AND REGULATION Some sub-sectors of RE still has not been set. Therefore, the Government continues to improve the regulation of development and utilization of NRE, including the preparation of draft government regulations of NRE. 2. CREATING MARKET through the supply and utilization of variuos NRE, obligating National Electric Company (PT PLN) to buy electricity. 3. FEED-IN TARIFF and CEILING PRICE Declared through the MEMR Regulation, that regulate the FiT and ceiling price of electricity from RE purchased by National Electric Company. 4. THE FUNDING AND OTHER SUPPORTING Providing fund to improve energy acess in remote and isolated area 5. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES Education and training in the field of RE Improving NRE networks, supporting the establishment of organization/association 6. INCREASING RESEARCH IN THE FIELD OF NRE Increase research cooperation; Increase kind of research 7. INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION Cooperation for capacity building and technology transfer Lessons learned for the implementation of NRE policies and programs
8 1) Increasing the share of RE use 2) Application of electricity tariff (ceiling price) for the purchase price of electricity from solar PV by PLN 3) Providing incentives for solar PV local production 4) Mandatory use of local production for solar PV development by government funding 5) Encourage the development of solar PV local industry 6) Solar PV development is priority for regional and remote area SOLAR PV PP1 MW IN BANGLI PROVINSI BALI
9 1. CURRENT CONDITION Solar PV PP installed capacity: MW By Government Funding, in year 2012 : 123 units Solar PV PP (4.8 MWp), in year 2013 : 121 units Solar PV PP (5.27 MWp) 2. DEVELOPMENT PROGRAM By Government Funding, in year 2014 : 154 units Solar PV PP For Independent Power Producer (IPP) : The GoI have already released the ministerial regulation on solar PV PP Tariff (MEMR Regulation No 17 Year 2013)
10 1) As an incentive to encourage development of solar PV, the GoI has already released regulation (MEMR Regulation Number 17 Year 2013 concerning on Purchasing Electricity From Solar PV Power Plant) 2) The tariff levels are based on ceiling price of 25 cent/kwh (using modules with local content < 40%, i.e. considered as imported modules) and 30 cent/kwh (using modules with local content 40%) 3) The application for the ceiling price will be done through bidding process using online system based on certain quota per annum 4) The quotas have already determined by Director General of NRE&EC 5) The total of quotas in is 140 MW, in 80 Locations 6) Currently 5 Locations (12 MWp) have appointed investors through bidding process, and 6 Locations on Bidding Process 7) Website:
12 NATIONAL ENERGY MIX MEMR REGULATION NR 17/2013 (PRICE, QUOTA, BIDDING) DECREE OF DG NRE&EC (QUOTA, TENDER, AUCTION WINNER) PT. PLN (ELECTRICITY PURCHASING) BIDDING PROCESS OF QUOTA CONSTRUCTION OF SOLAR PV PP APPOINTMENT OF IPP PPA
13 1. To make escrow account (20% of invesment total). 2. To finish financial close in 3 month after Power Purchase Agreement (PPA) 3. To start construction in 3 months after financial close 4. To reach Commercial Operation Date (COD) in 18 months after PPA. If no reached COD in 18 months, so that can be extended until 12 months, but will be charged by decreasing price : Tardiness until 3 months will be charged decreasing price of 3% Tardiness > 3 months - 6 months will be charged decreasing price of 5% Tardiness > 6 months will be charged decreasing price of 8% 5. No allowed to transfer ownership to another business entities.
14 1. Solar PV initial investment is still high, therefore cannot compete with conventional power generation (fossil fueled power generation); 2. The incentive mechanism is needed to develop industry which is oriented for solar energy utilization; 3. Solar PV system efficiency is relatively low; 4. Photovoltaic technology is not yet implemented in industrial scale; 5. Various technical specifications of PV in the market needs standardization. 6. Lack of education/socialization of solar PV application to the community; 7. Lack of local government and community in understanding solar PV technology and it s management.
15 1) The potential of solar energy in Indonesia is abundant although until now the potential has not been widely utilized. 2) Indonesia government invite investors wishing to participate in developing solar PV in Indonesia. 3) The development of solar PV program in Indonesia is still in its early stage. 4) To encourage development and utilization of solar PV, the Government of Indonesia have already released MEMR regulation about ceiling price. 5) Indonesia government has determined the development of solar PV to fulfill energy needs for rural/remote/isolated areas. 6) For urban areas, Indonesia government will do assessment on PV roof-top systems.
16 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 : Energy and Mineral Resources for People s Welfare
The Indonesian electricity system - a brief overview Takeaways The Indonesian electricity sector is heading towards a crisis, unless significant investments are made. Indonesia s electricity generation
THE FIRST DECADE: 2004 2014 10 YEARS OF RENEWABLE ENERGY PROGRESS 01 2006 2009 2010 2 Table of Contents 1 Introduction... 5 7 2 Ten Years of Progress.... 8 14 3 Ten Years of Impact... 15 21 4 Renewables
New Zealand Energy Strategy 2011 2021 Developing our energy potential and the New Zealand Energy Efficiency and Conservation Strategy 2011 2016 Contents New Zealand Energy Strategy 2011 2021 Foreword 1
EUROPEAN COMMISSION Brussels, 25.2.2015 COM(2015) 80 final ENERGY UNION PACKAGE COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE
Sustainable Energy for All: The Business Opportunity A comprehensive analysis of priority actions across 19 industry sectors Contents Foreword Introduction Sustainable Energy for All: Its Value to Global
GOVERNOR GARY R. HERBERT March 2, 2011 ENERGY INITIATIVES & IMPERATIVES Utah s 10-Year Strategic Energy Plan TABLE OF CONTENTS Executive Summary........................................... 2 I. Introduction...........................................
WORLD ENERGY OUTLOOK 2 0 1 1 ENERGY FOR ALL Financing access for the poor Special early excerpt of the World Energy Outlook 2011 First presented at the Energy For All Conference in Oslo, Norway in October
Sustainable Growth: Taking a Deep Dive into Water Water could be a constraint on growth The world s freshwater resources are unevenly distributed around the planet: over 60% of the Earth s freshwater supply
WRI Amanda Sauer Piet Klop HSBC Sumeet Agrawal OVER HEATING Financial Risks from Water Constraints on Power Generation in Asia India, Malaysia, Philippines, Thailand, Vietnam Each World Resources Institute
REPORT UK OCTOBER 2011 Climate change Sustainability Conservation Positive Energy: how renewable electricity can transform the UK by 2030 ABOUT WWF-UK WWF is at the heart of global efforts to address the
Chapter 1 Solar Energy 1.1 Summary KEy messages Solar energy is a vast and largely untapped resource. Australia has the highest average solar radiation per square metre of any continent in the world. Solar
ALL ISLAND GRID STUDY WORK STREAM 4 ANALYSIS OF IMPACTS AND BENEFITS January 2008 Executive Summary The All Island Grid Study is the first comprehensive assessment of the ability of the electrical power
POLICY HANDBOOK VOICE OF FUTURE GENERATIONS HOW TO ACHIEVE 100 % RENEWABLE ENERGY IMPRINT Authors: Toby D. Couture, Founder & Director, E3 Analytics Anna Leidreiter, Policy Officer Climate Energy, World
Possibilities for electricity exchange between Norway and Germany Author: Marie Lindberg Contributors: Tina Bangsund Olsen Marte Bakken Einar Wilhelmsen Layout: Hans Andreas Starheim Cover: The old machine
EEA Technical report No 21/2014 Energy support measures and their impact on innovation in the renewable energy sector in Europe ISSN 1725-2237 EEA Technical report No 21/2014 Energy support measures and
Table of Contents Executive Summary......................................................................1 Introduction............................................................................5 A. Why
The New Brunswick Oil and Natural Gas Blueprint The New Brunswick Oil and Natural Gas Blueprint Province of New Brunswick PO 6000, Fredericton NB E3B 5H1 www.gnb.ca ISBN 978-1-4605-0069-9 (print edition)
Managing interactions between carbon pricing and existing energy policies Guidance for Policymakers Christina Hood OECD/IEA 2012 The views expressed in this IEA Insights paper do not necessarily reflect
Renewable Energy Technology Roadmap 20% by 2020 Introduction Introduction In March 2007, the Heads of States and Governments of the 27 EU Member States adopted a binding target of 20 % renewable energy
Green Paper on Energy Policy in Ireland May 2014 Contents Foreword A Message from Minister Pat Rabbitte, T.D. 4 I. Setting the Context 5 Overview of Green Paper process 5 Introduction Energy policy developments
Global Green New Deal An Update for the G20 Pittsburgh Summit September 2009 Pittsburgh 20 Summit About UNEP The United Nations Environment Programme (UNEP) is the overall coordinating environmental organization
Get Into Energy Career Pathways for Skilled Utility Technicians Overview Energy jobs offer promising opportunities to both experienced and new workers. The industry as a whole is projected to experience
Sustainable Energy for All A Framework for Action The Secretary-General s High-level Group on Sustainable Energy for All January 2012 1 The Secretary-General s High-level Group on Sustainable Energy for
Developing Renewable Energy Projects Larger Than 10 MWs at Federal Facilities A Practical Guide to Getting Large-Scale Renewable Energy Projects Financed with Private Capital Cover photos, clockwise from
Industries Energy, Utilities & Mining Sector On the sunny side of the street* Opportunities and challenges in the Turkish renewable energy market August 2009 Contents 01 Introduction 03 Executive Summary