CLIMATE AND ENERGY POLICIES IN INDONESIA AND RELEVANCE OF THE RAC SECTOR

Transcription

1 CLIMATE AND ENERGY POLICIES IN INDONESIA AND RELEVANCE OF THE RAC SECTOR HARRIS Directorate of Energy Conservation Directorate General of New Renewable Energy and Energy Conservation Presented at: Stakeholder Workshop for Green Chiller Project Jakarta, 12 May 2015

2 CONTENTS

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4 ENERGY DEMAND CONTINUE TO INCREASE Economic Growth GDP(Trllion IDR) 6.1% 2,177 3,943 Energy Growth Energy (Million BOE) 1,316 1, , % Population Growth Population (Million) % The chart is based on Draft National Energy Policy

5 ENERGY SUPPLY IS DOMINATED BY FOSSIL ENERGY 18% National Primary Energy Million BOE 1% 1% 3% 31% 46% No Primary Energy Total (Million BOE) 1 Coal Oil Natural Gas Hydro 43 Coal Oil Gas Hydro Geothermal Biofuel Non Fosil Energy Share < 5% 5 Geothermal 15 6 Biofuel 5 TOTAL 1328 Note: - Based on Handbook of Energy & Economic Statistics of Indonesia Exclude biomass and non-energy used

6 NO NEW RENEWABLE ENERGY RESOURCES INSTALLED CAPACITY (IC) *) Preliminary figures up to December 2013 excluding biomass and the use of non-energy RATIO OF IC/RESOURCES (%) = 4/3 1 Hydro 75,000 MW 7,572 MW 10.1 % 2 Geothermal 28,910 MW 1,403.5 MW 4.9 % 3 Biomass 32,654 MW 1,717.9 MW 5.4 % 4 Solar 4.80 kwh/m 2 /day MW - 5 Wind 3 6 m/s 1.87 MW - 6 Ocean 49 GW ***) 0.01 MW ****) - 7 Uranium 3,000 MW *) 30 MW **) - *) Only in Kalan, West Borneo **) As a center of research, non-energy ***) Source: National Energy Council ****) BPPT s Prototype NO The Potential of NRE Resources and EC Implementation POTENTIAL OF NRE RESOURCES POTENTIAL OF ENERGY CONSERVATION SECTOR ENERGY CONSUMPTION PER SECTOR 2012 (MBOE) *) POTENTIAL OF ENERGY CONSERVATION TARGET OF SECTORAL ENERGY CONSERVATION (2025) 1 Industry 305 (39,7%) 10 30% 17% 2 Transportation 311 (40,4%) 15 35% 20% 3 Household 92 (12%) 15 30% 15% 4 Commercial 34 (4,4%) 10 30% 15% 5 Others (Agriculture, Construction, and Mining) 26 (3,4%) 25% - Source: Draft on National Energy Conservation Master Plan

7 PRIMARY AND FINAL ENERGY INTENSITY BOE/Billion Rupiah Intensitas EF

8 POTENTIAL ENERGY SAVING Sector Energy Consumption Per Sector Year 2012 (Million BOE) *) Potential of EC Target of Energy Conservation Sectoral (2025) Industry 305 (39,7%) 10 30% 17% Transportation 311 (40,4%) 15 35% 20% Household 92 (12%) 15 30% 15% Commercial 34 (4,4%) 10 30% 15% Others (Agriculture, Construction, and Mining) 26 (3,4%) 25% - source: Draft National Energy Conservation Master Plan (RIKEN) 2011 Note: - exclude biomass and non-energy used - *) temporarily data on December 2013

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10 NATIONAL ENERGY POLICY 2025 TARGET ENERGY ELASTICITY < 1 REDUCING ENERGY INTENSITY 1% PER YEAR OPTIMIZING AND INCREASING NRE SHARE ON NATIONAL ENERGY MIX ENERGY CONSERVATION, CLEAN AND EFFICIENT TECHNOLOGY REDUCING GHG EMISSION Oil 25% Gas 22% NRE 23% Coal 30% Oil 25% Others NRE 3% Gas 22% Bioenergy 10% Coal 30% Geothermal 7% Hydro 3% DG NREEC MAIN OBJECTIVES 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.

11 NATIONAL COMMITMENT TO REDUCE GHG EMISSION Global Warming and Climate Change has been a Hot Issue National Commitment to reduce the GHG Emission in 2020 Own efforts 26% (767 mln Ton) 41% (26%+15%) Own efforts and international support Presidential Reg No. 61/2011 RAN-GRK Presidential Reg No. 71/2011 GHG Inventory and MRV Through the development of new renewable energy and implementing energy conservation by all sectors

12 FRAMEWORK OF MITIGATION ACTIONS (NAMAs)

13 MILESTONES OF ENERGY CONSERVATION REGULATION 1982 Presidential Instruction No. 9/1982 concerning on Energy Conservation 1995 Master Plan of National Energy Conservation 2002 Law No. 28 / 2002 concerning on Building 2006 Presidential Regulation No. 5/2006 concerning on National Energy Policy POLICY AND REGULATION ON ENERGY CONSERVATION Law No. 30/2007 concerning on Energy Presidential Instruction No. 2/2008 concerning on Energy and Water Saving 2009 Govt. Regulation No.70/2009 concerning on Energy Conservation 2011 Presidential Instruction No. 13/2011 concerning on Energy and Water Saving Presidential Regulation No. 61/2011 concerning on National Action Plan of Green House Gas Emission Reduction 2012 & 2013 Ministry of EMR Regulation concerning on Energy and Water Saving Ministry of EMR Regulation No. 13/2012 concerning on Electricity Usage Saving Ministry of EMR Regulation No. 14/2012 concerning on Energy Management Ministry of EMR Regulation No. 15/2012 concerning on Water Usage Saving Ministry of EMR Regulation No. 01/2013 concerning on Control of Subsidized Fuel Utilization Ministry Of EMR Decree No. 4051K/07/MEM/2013 concerning on Catur Dharma Energi 2014 Ministry of EMR Regulation No. 18/2014 concerning on Affixing Label for Swabalast Lamp Ministry of EMR Regulation No. 19/2014 concerning on Electricity Tariff Government Regulation No. 79/2014 concerning on National Energy Policy 2015 Ministerial (MEMR) Regulation No. 7/2015 on Implementation of MEPS and Energy Efficiency Label for Air Conditioning Ministerial (MOL) Decree No. 80/2015 on Implementation of National Competency Standard for Energy Manager in Industry and Building

14 LAW NO 30/2007 ON ENERGY Everyone is entitled on energy (Article 9.1) Government and/or local government will provide energy through diversification, conservation and intensification of energy and energy resources (Article 20) Government, local government, private and public entities are responsible in energy conservation (Article 25)

15 GOVERNMENT REGULATION NO. 70/2009 ON ENERGY CONSERVATION Law NO. 30 / 2007 On ENERGY Gov t Reg. No.70/2009 on ENERGY CONSERVATION RESPONSIBILITIES OF GOVERNMENT, LOCAL GOVERNMENT, PRIVATE AND PUBLIC IMPLEMENTATION OF ENERGY CONSERVATION STANDARD & LABEL FACILITIES, INCENTIVES AND/OR DIINCENTIVES MONITORING AND GUIDANCE Energy users with energy consumption TOE per year is obliged to implement energy conservation through energy management: Appoint energy manager; Develop energy conservation program; Conduct energy audit regularly; Implement energy audit recommendation; Report the result of energy conservation The implementation of efficient energy technology is through the development and implementation of standard and labeling on energy appliances

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17 MAIN PROGRAMS ENERGY EFFICIENCY REGULATION Develop/improve regulation PUBLIC AWARENESS RAISING Seminar/workshop Socialization through electronic, social media, etc National energy efficiency award Home and School Energy Champion MONITORING OF RAN-GRK Target RAN GRK sampai dengan 2020: 30 Juta Ton CO 2 PARTERSHIP PROGRAM / IGA Implementation of energy audit; Monitoring of energy audit achievement Implementation of Investment Grade Audit (IGA). EC PROGRAM SNI:ISO Implementation of ISO 50001: Energy Management System in industries with supervision of national expert Implementation of energy management mandatory program (150 object). EFFICIENT STREET LIGHTING Develop smart street lighting concept in 22 cities Develop national efficient street lighting forum Cooperation with USAID, ADB to develop pilot project STANDARD AND LABEL Development of Minimum Energy Performance Standard (MEPS) Energy Efficiency Label for CFL, AC, Refrigerator, Rice Cooker, Electric Motor, Fan, Electric Ballast TARGET 1. Energy Intensity 2. Energy Elascity 3. Emission Reduction ENERGY MANAGER & AUDITOR Development of national competency standard Certification (total 60 personel)

18 ENERGY EFFICIENCY LABEL: SNI (Comparative Label) EE level 4 stage rating system Product model Registration No. To Introduce Energy-Saving Rate as a Guide for Consumers Logo: More Star, More Efficient

19 MINIMUM ENERGY PERFORMANCE STANDARD (MEPS) Purpose: To control circulate inefficient product. To avoid import inefficient product; To encourage importer and local manufacturer to make efficient products; MEPS has already issued : Air Conditioning (Ministerial Regulation No. 7/2015) Planning MEPS for 2015 : Refrigerator, Rice Cooker, Electric Fan, Electric Ballast, Electric Motor

20 TARGET PRODUCTS FOR MEPS & LABEL 1. Compact Fluorescent Lamp 2. Room Air Conditioner 3. Refrigerator 4. Television 5. Electronic Ballast 6. Electric Fans 7. Rice Cooker 8. Electric Motor 9. Washing machine 10. Electric Iron

21 GREEN CHILLER NAMA Objective: The air conditioning and process cooling supply NAMA significantly contributes to the achievement of the Indonesian GHG mitigation target Focus Areas: NAMA Strategy development Economic Instruments GREEN CHILLER NAMA Implementation of pilot measures Capacity Development

22 BARRIER REMOVAL TO THE COST EFFECTIVE DEVELOPMENT AND IMPLEMENTATION OF ENERGY STANDARD AND LABELING (BRESL) A regional cooperation coordinated by UNDP to support the development and harmonization of EE standard and labeling for 6 (six) appliances: CFL, AC, Refrigeration, Fan, Ballast, Motor, and Rice Cooker) Support the establishment 4 accredited test laboratorium (1 tes lab in the process) Establish Forum for Test Laboratorium, consists of State and Private Test Lab, MEMR, Ministry of Industry, Ministry of Trade, National Standardization Body

23 PROMOTING ENERGY EFFICIENCY FOR NON-HCFC REFRIGERATION AND AIR CONDITIONING (PENHRA) In continuation and inline with HCFC Phase-out Management Plan (HPMP) for Indonesia, MEMR in cooperation with UNDP develop PENHRA to improve energy efficiency of refrigeration and air conditioning (RAC) equipment and appliances manufactured and sold in Indonesia. Project aims to phase out HCFC and introduce of alternative technologies that will involve product redesign, technology conversion including modification of production lines and processes, technical assitance, trials and testing, training and certification.

24 LOW CARBON MODEL TOWN In 2013, Government of Indonesia decided to establish Bitung Special Economic Zone at Tanjung Merah and Manembo-nembo District, as part of the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI). The Bitung Special Economic Zone is the area that will be developes as Low Carbon Model Town. As a part of Government of Indonesia s effort to implement energy efficiency program and in the spirit of APEC cooperation, Indonesia would like to propose the city of Bitung in North Sulawesi as the nominated LCMT project in 2015 Several measures have been implemented by the City of Bitung related to the implementation of low-carbon development, such as: Development of renewable energy power plants (Microhydro Power Plants, Geothermal PPs and Phovoltaic PPs) Application of solar and wind power for public street lighting Issuance of Local Government Regulation regarding 30% green open space in commercial buildings and residential areas, and Planting trees for reforestation

25 PROMOTING ENERGY EFFICIENCY IN INDUSTRIAL THROUGH SYSTEM OPTIMIZATION AND ENERGY MANAGEMENT STANDARD GOALS Goal: to develop the capacity of industry in energy efficiency management system integrated with energy optimization system approach and energy management system standard ISO The targeted of industries include 4 (four) sub-sectors are: textile & garments, food & beverages, paper, and chemical industries. APPROACH The introduction and improvement of the capacity of the Energy Management System Increasing capacity in optimization system Increasing funding capacity to support the Energy Efficiency Project in Industry Implementing Energy Management and Optimization System Project

26 5 BARRIERS IN ENERGY CONSERVATION DEVELOPMENT Low energy price due to energy subsidy which is not only increasing a country s financial burden but also deterring the promotion of energy efficiency measures. Lack of energy saving awareness. Limited knowledge and understanding of the importance and benefits of energy conservation implementation to save 1 kwh is much cheaper and easier than to produce 1 kwh. High front investment cost for energy efficient technology. Lack of capacity in EE technology, including testing laboratories and certification bodies Lack of smart/innovative financing mechanism for energy efficiency projects. Lack of incentive for energy efficiency project. Lack of coordination among institutions in formulating financing and incentive regulations. Lack of regulation on ESCO engagement

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