SOLAR PV POLICY AND FEED IN TARIFF AS THE DRIVER FOR PV IN INDONESIA

Transcription

1 SOLAR PV POLICY AND FEED IN TARIFF AS THE DRIVER FOR PV IN INDONESIA by : Directorate of Various New Energy and Renewable Energy Presented at: Solar Workshop under the Joint Crediting Mechanism Feasibility Study, the possibility of Introduction ti of Thin-Film Mega-Solar Sl Power Plant in Indonesia Id DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES, Jakarta, February 8, 2013

2 I. INDONESIA ENERGY CONDITION (2011) 5.03% Natural 24.29% 29% Crude 46.77% 23.91% Share of Non Fossil Energy 5% 1. National energy mix on 2011: 1176 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); it 4. Renewable energy utilization and energy conservation implementation is not optimized yet; 5. Public access to energy (modern) is still limited: a. Electrification ratio of year 2011 is % (27.05 % 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. 2

3 II. ENERGY POLICY DIRECTION Ministry of Energy and Mineral Resources Natural 24.29% 5.03% Crude 46.77% 23.91% BAU 21% 34% 3298 Million BOE PRESIDENTIAL VISION 25/25 3% REGULATION 5/ % 3,1% Other RE Bioenergy 5% 5% Geothermal 5% 30% Liquified 3% 20% 3200 Million BOE 33% 25% 20% 2785 Million BOE 23% 32% Primary Energi Conservation (15.6%) 1176 MillionBOE 5,0 % 24 % 24,% 47,% 1649 MBOE 2419 MBOE 34.6% 20,6% 41.7% 17% 33% 30% 20% 25 % E 32% 20% 23% nergy Diversifi ication Note: 1 TOE = 7,33 SBM 2025

4 III. MAIN POLICIES 1. Energy Conservation to improve efficiency in energy utilization from up-stream up to down-stream (Demand Side) i.e. industrial, transportation, household and commercial sector 2. Energy Diversification to increase new renewable energy share in national energy mix (Supply Side). i.e. New Energy Renewable Energy a. Liquefied, a. Geothermal, b. Bed Methane, b. Bioenergy, c. ified, c. Hydro, d. Nuclear, d. Solar, e. Hydrogen. e. Wind, f. Ocean.

5 IV. OBSTACLES AND CHALLENGES 1. Solar PV initial investment is still high, therefore cannot compete with conventional power generation (fossil fueled power generation); 2. There is no private investment in developing solar PV (IPP), probably due to insufficient price of feed in tariff; 3. The incentive mechanism is needed to develop industry which is oriented for solar energy utilization; 4. Solar PV system efficiency is relatively low; 5. Photovoltaic technology is not yet implemented in industrial scale; 6. Various technical specifications of PV in the market needs standardization. 7. Lack of education/socialization of solar PV application to the community;

6 V. POLICY OF SOLAR PV 1) Increasing the share of renewable energy use 2) Application of Feed-in Tariff 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 funding national and regional budgets 5) Encourage the development of solar PV local industry 6) Solar PV development is priority for regional and remote area

7 VI. CURRENT DRAFT ON FIT SCHEMES 1) Feed-In Tariffs is an incentive to encourage development of renewable energy including solar PV 2) The tariff levels are fixed and guaranteed for fixed period (i.e 20 years) 3) Mechanism of application for FIT is based on certain quota per annum and will be done through bidding process, in this case via direct appointment or direct selection 4) The determination of the quotas will be established by Director General of &EC

8 VII. CONCLUSIONS The potential of solar energy in Indonesia is abundant although until now the potential has not been widely utilized, therefore, investors wishing to participate in developing solar PV in Indonesia. The development of solar PV program in Indonesia is still in its early stage. To encourage development and utilization of solar PV, the Government of Indonesia will release FIT. Indonesian government has designated the development of solar PV to fulfill energy needs for areas in Eastern part of Indonesia.

9 DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta Phone/Fax :