UPDATES ON RENEWABLE ENERGY DEVELOPMENT PROGRAM IN INDONESIA

Transcription

1 UPDATES ON RENEWABLE ENERGY DEVELOPMENT PROGRAM IN INDONESIA Presented at: EXPERT GROUP MEETING ON NEW RENEWABLE ENERGY TECHNOLOGY Honolulu, 30 March 3 April

2 Energy Law No. 30 Year 2007 Issued in 10 July 2007 with special attention on new renewable energy development and energy conservation; Provision and utilization of new renewable energy should be increased by government and local government following their authorities. Provision and utilization of new renewable energy can get incentives from government/local government for certain period until it reaches economical development stage. 2

3 NATIONAL ENERGY POLICY (PRESIDENTIAL DECREE NO. 5 YEAR 2006) Target in Less than 1 for energy elasticity 2. Optimized primary energy mix CURRENT ENERGI MIX (1 million BOE) National (Primary) Energy Mix Hydro Power, 3.11% Geothermal, 1.32% Natural Gas, 28.57% Oil 51.66% Coal, 15.34% National (Primary) Energy Mix of 2025 (BaU Scenario) Power Plant, 1.9% Mini/micro Hydro Power Plant, 0.1% Geothermal, 1.1% Gas, 20.6% Total RE: 44 million BOE National Energy Mix 2025 (Presidential Decree No. 5/2006) Oil, 20% Oil, 41.7% Total RE: 155 million BOE Coal 34.6% OPTIMIZING ENERGY MANAGEMENT Gas, 30% New & RE,17% Total RE: Coal, 33% 476 million 3 BOE BIOFUELS, 5% Geothermal, 5% Biomass, Nuclear, Hydro Solar Energy, Wind Power, 5% Coal Liquefaction 2%

4 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 grant from GEF through UNDP for 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. 4

5 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 2009 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. 5

6 IMPLEMENTATION OF RENEWABLE ENERGY 6

7 NEW and RENEWABLE ENERGY IMPLEMENTATION RESULTS Policies and regulations including incentives on fiscal and non fiscal have been issued to enhance and accelerate implementation of new renewable energy; From the statistic in , there have been significant increases in the implementation as the result of the government policy to utilize renewable energy for rural electrification program and biofuel; Initially, implementation of renewable energy is focused on providing the access on electricity for rural community; currently renewable energy has been also developed by privates commercially in the form of electricity and biofuel. 7

8 RENEWABLE ENERGY FOR ELECTRICITY 8

9 Biomass Development for Electricity Generation Power generation with biomass waste as fuel; currently being utilized in most palm oil mills for their own uses and exported to the PLN grid; Utilization of biomass waste as fuel blending in coal fire power plant; A private power plant in Kudus, West Java operates power plants using 80% coal and 20% rice husk as fuel; Biooil for diesel generator; PT PLN has developed the use of biooil (pure plant oils) for several diesel generators located near CPO production.

10 ON-GRID RENEWABLE ENERGY POWER GENERATION - IN OPERATION - No TYPE TOTAL UNIT CAPACITY (kw) 1 MICROHYDRO 13 4,293 2 SOLAR WIND BIOMASS 1 5,000 T o t a l 23 9,045 IN PROGRESS - No TYPE TOTAL UNIT CAPACITY (kw) 1 MICROHYDRO SOLAR WIND BIOMASS T o t a l 58 88,910 10

11 Implementation tion of renewable energy for rural electrification RE type Year Wind 80 kw (1 unit) 240 kw (3 unit) 735 kw (9 unit) 80 kw (1 unit) Solar Home System (SHS) kwp (2,390 units) kwp (31,488 units) kwp (40,598 units) kwp (40,000 units) Centralised photovoltaic 18 kwp (5 unit) kwp (5 unit) 150 kwp (9 units) Microhydro 155 kw (4 units) 702 kw (12 units) kw (7 units) 782 kw (7 units) Pycohydro 50 kw (25 units) 30 kw (15 units) 45 kw (18 units)

12 RENEWABLE ENERGY FOR FUEL (BIOFUEL) 12

13 Milestone Biofuel Program Parameter s/d Policy and regulation Biofuel development has been a part of Green Energy Policy 1. 5% target on National Energy Mix in National Standard on Biodiesel dan Bioethanol 3. Revised diesel and gasoline specifications that allows biofuel blending 4. Issuance of Business Regulation on Biofuel 1. Law No. 30 on Energy was issued 2. Blue Print and Road Map of Biofuel Developent 3. Custom exemption for bioethanol 4. Investment tax incentive for biofuel industries 5. Government subsidy for biofuel plantation 1. Biofuel was included as an priority national economic program 2. Comprehensive policy and regulation on biofuel as other biofuel including pricing and mandatory Sustainable policy on biofuel as one of renewable energy resources that provides at least 5% in national energy mix Production Pilot project 1 ton/day Commercial scale of biodiesel plant was in operation (capacity 120 thousand ton per year) and 10,000 ton per annum for bioethanl National capacity for biodiesel reached 1.5 million ton and bioethanol 12,000 ton, National capacity on biodiesel was 2.5 million ton, 192,000 ton for bioethanol, 62 unit PPO processor sand 300 jatropha pressers 5% from energy mix, equivalent with 22.3 milion KL Commercializatio n Retailed as an additive gasoline station B5 and E5 have been in 50 gasoline stations in Jakarta, Surabaya and Malang; Running test for biofuel in PLN electricity generator B5 and E5 were available in 279 gasoline stations in Jakarta, Surabaya, Malang and Denpasar; 96 MW of genset 279 gasoline stations in di Jakarta, Surabaya, Malang dan Denpasar 24 Biopremium gas stations in Jakarta (August) Available in all gasoline stations and direct use 13

14 Biofuel Incentives Mandatory biofuel utilization Tax exemption on VAT Investment tax incentives Direct subsidy on retail price for transportation sector 14

15 MINIMUM MANDATORY ON BIODIESEL UTILISATION (PERMEN ESDM NO. 32 TAHUN 2008) Sector September 2008 up to December 2008 January 2009 January 2010 January 2015** January 2020** January 2025** Household Currently not decided Note Transportation PSO 1 % (existing) 1 % 2,5 % 5 % 10 % 20 % Transportation Non PSO - 1 % 3 % 7 % 10 % 20 % Industry and Commercial 2,5 % 2,5 % 5 % 10 % 15 % 20 % Power generation 0,1 % 0,25 % 1 % 10 % 15 % 20 % * To total national demand * To total national demand * To total national demand ** Specification to be adjusted following the global (WWFC) and national needs 15

16 MINIMUM MANDATORY ON BIOETHANOL UTILISATION (PERMEN ESDM NO. 32 TAHUN 2008) Sector September 2008 up to December 2008 January 2009 January 2010 January 2015** January 2020** January 2025** Household Currently not decided Transportation PSO 3 % (existing) Note 1 % 3 % 5 % 10 % 15 % To total national demand Transportation Non PSO 5 % (existing) 5 % 7 % 10 % 12 % 15 % To total national demand Industry and Commercial Power generation - 5 % 7 % 10 % 12 % 15 % To total national demand To total national demand ** Specification to be adjusted following the global (WWFC) and national needs 16

17 MINIMUM MANDATORY UTILISATION FOR PURE PLANT OIL (PERMEN ESDM NO. 32 TAHUN 2008) Sector September 2008 up to December 2008 January 2009 Janua ry 2010 Januar y 2015** Januar y 2020** Janua ry 2025** Note Sector House hold Currently not decided Industry and Transportatio n (Low and medium speed engine) Indust ry % 3 % 5 % 10 % Marine % 3 % 5 % 10 % Power generation - 0,25 % 1 % 5 % 7 % 10 % To national demand

18 Future sustainable biofuel development Development of non-edible feedstock and dedicated feedstock for biofuel; Development of second generation of biofuel that will create sustainable and low cost biofuel industry; Indonesia is conducting R&D on algae for biodiesel dan biooil; Cooperation on R&D on cellulosic based or woodybiomass bioethanol. 18

19 JATROPHA CURCAS Considered as a potential biofuel feedstock that can be utilized for fuel in transportation, electricity generation and household; Extensive researches by government, universities, private and society are being in place in Indonesia; To establish a Global Jatropha networking for research and development; Approaches for development: Developed by farmers and used directly as biokerosine; Privates for large capacities for biodiesel production but still involving local farmer 19

20 Calophyllum inophyllum L. A Potential Plant for Biofuel High survival potency Easy silviculture Does not compete with crops High multipurpose (wood, gum, leaf, flower, seed) As windbreaker and soil conservation tree

21 PROJECT IDEA 1. Survey on Electricity Production Cost in Small/Distributed Power Generation to Promote Renewable Energy-Based Electricity Generation Leading economics: Indonesia Co-sponsor: 2. Study on Small Grid Power Generation from Renewable Energy Leading economic: USA Co-sponsor: Indonesia.. 3. Study on Sustainable Aspect of Biofuel Production Leading economics: USA Co-sponsor: Indonesia, 4. Study on renewable energy impact on gender issues Leading economic: Indonesia. Co-sponsor:.. 21

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