SOLAR ENERGY IN INDONESIA Potentials, Plannings and Framework Conditions

Transcription

1 SOLAR ENERGY IN INDONESIA Potentials, Plannings and Framework Conditions Presented at: Workshop Solar Photovoltaic in Indonesia DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES, REPUBLIC OF INDONESIA Berlin, 7 March 2012

2 National Energy Mix Total in million BOE Elasticity of Energy = 1.60 Share of Non Fossil Energy < 5% CONDITION OF ENERGY Public access to energy (modern) is still limited: a. Electrification ratio in 2010 was 67.15% (32,85% of households not yet electrified); b. Development of energy infrastructure (rural / remote areas and outer islands generally do not get access to energy); 2. Growth in energy consumption an average of 7% per year, yet balanced with enough energy supply; 3. Dependence on fossil energy is still high (95.4%), reserves are more limited; 4. Utilization of renewable energy and implementation of Energy Conservation is not optimal; 5. Linkage to environmental issues: a. Mitigation of climate change; b. Carbon trading; c. National commitment to reducing emissions 26% by 2020; 6. Funding for the development of energy sector is still very limited.

3 ENERGY RESERVES AND PRODUCTION NO NON FOSSIL ENERGY RESOURCES (R) INSTALLED CAPACITY (IC) RATIO IC/R (%) = 4/3 1 Hydro 75,670 MW 5,771 MW Geothermal 28,543 MW 1,228 MW Mini/Micro Hydro MW MW Biomass 49,810 MW 1, MW Solar Energy 4.80 kwh/m 2 /day 20 MW - 6 Wind Energy 3 6 m/s 1.87 MW - 7 Uranium MW (e.q. 24,112 ton) for 11 years *) 30 MW 1.00 *) only in Kalan West Kalimantan NO FOSSIL ENERGY RESOURCES (R) RESERVES (Rv) RATIO R/Rv (%) PRODUCTION (PROD) RATIO Rv/PROD (YEAR)*) = 4/3 6 7 = 4/6 1 Oil (billion barrel) **) Gas (TSCF) Coal (billion ton) Coal Bed Methane/CBM (TSCF) *) assumed no new reserves are found **) include Cepu blocks

4 COMMITMENT ON CLIMATE CHANGE President Commitment on G-20 Pittsburgh and COP15 To reduce te GHG Emission in 2020 Own efforts 26% 41% Own efforts and international support Forestry 14% Energy 6% Waste 6% Through the development of new renewable energy and implementing energy conservation by all sectors

5 BAU** ENERGY POLICY DIRECTION NRE 3% PERPRES 5/2006 VISION 25/25 NRE, 4.4% Oil, 43.9% Coal, 30.7% Gas 21% Oil 42% NRE 17% Oil 20% NRE 25% Oil 30% Natural Gas, 21.0% Coal 34% Gas 30% Coal 33% Gas 23% Coal 22% 4,300 million BOE 3.1% 34.6% 3,200 million BOE 2,852 million BOE ENERGY CONSERVATION (33.85%) NRE Coal Natural Gas Oil 1,131.3 million BOE 4.4 % 30.7 % 21 % 43.9% 20.6% 41.7% 17% 33% 30% 20% 25 % NRE 22 % Coal 23 % Natural Gas 30 % Oil ENERGY DIVERSIFICATION 2010* Source: *Estimation 2010, DEN , **BAU EBTKE 2025

6 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 Coal, a. Geothermal b. Coal Bed Methane, b. Bioenergy c. Gasified Coal, c. Hydro d. Nuclear, d. Solar e. Hydrogen. e. Wind f. Ocean

7 MAIN AGENDA AGENDA ON NEW RENEWABLE ENERGY AND ENERGY CONSERVATION 1. Harmonizing regulations 2. Updating Master Plans on Energy Diversification and Energy Conservation 3. Improvement of efficiency on energy utilization 4. Development of geothermal 5. Development of bioenergy 6. Development of other new renewable energy 7. Development and implementation of clean energy technology 8. Increasing local content and supporting industry 9. Increasing people participation on Energy Self-Sufficient Village 10. Increasing people participation on low carbon city SUPPORTING AGENDA 1. Enhancing research and development 2. Enhancing training and education

8 DEVELOPMENT STRATEGY STRATEGY IN THE ENERGY SUPPLY SIDE : applying the mandatory provision of New and Renewable Energy increasing the use of New and Renewable Energy use of cleaner fuels (fuel switching) in providing energy STRATEGY IN THE SIDE OF ENERGY UTILIZATION (DEMAND SIDE) : applying the energy utilization efficiency commitment use of cleaner fuels (fuel switching) in energy utilization applying the principles of energy saving use of clean and efficient energy technologies develop the attitude of life-saving energy

9 NEW AND RENEWABLE ENERGY POLICY TO ENHANCE THE DEVELOPMENT OF NEW AND RENEWABLE ENERGY Regulation 1. Law No. 30/2007 on Energy 2. Law No. 30/2009 on Electricity 3. Law No. 27/2003 on Geothermal Description Provision and utilization of new & renewable energy should be increased by the government and local government in accordance to 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. Putting priority to utilize locally available energy resources for electricity generation Process of procurement is implemented through direct selection (without tender) To regulate the management and development of geothermal energy sources for direct and indirect utilization 9

10 Regulation 4. Minister of Energy Regulation No. 02/2011 on Electricity Purchasing Price from Geothermal 5. Minister of Energy Regulation No. 4/2012 on Small and Medium Scale Power Generation using Renewable Energy Description Feed in Tariff (FIT) for the purchasing price of electricity generated from Geothermal FIT for the price of electricity generated from Renewable Energy FIT for the price of electricity generated from Biomass and Biogas FIT for the price of electricity generated from Domestic Waste using zero waste technology FIT for the price of electricity generated from Domestic Waste using sanitary landfill technology 6. Minister of Finance Regulation No. 24/PMK.011/ 2010 on Renewable Energy Incentives Tax facility for renewable energy in the form of Income Tax, VAT, Import Duty and Tax Holiday, Tax Exemption etc. 10

11 PROJECTION OF ENERGY SUPPLY Types of Energy Biomass Biofuel 3.1% 3.7% 3.6% 6.7% Biomass from Waste [Electric] - 0.5% 1.0% 2.4% Geothermal 0.5% 1.3% 1.8% 2.2% Hydro 1.9% 2.8% 5.2% 5.3% Ocean Energy % 0.3% Solar Energy - 0.2% 1.0% 2.0% Wind Energy - 0.1% 0.3% 0.4% CBM - 0.5% 2.4% 5.8% Sub total New and Renewable Energy 25% Oil 49.7% 38.6% 29.3% 23.7% Gas 20.1% 19.5% 19.0% 19.7% Coal 24.7% 32.8% 36.2% 31.6% Sub total Fossil 75%

12 HISTORICAL DEVELOPMENT OF SOLAR ENERGY IN INDONESIA The Indonesian history of solar energy utilization with the photovoltaic technology has been introduced and developed since the end of 1970 s, especially to meet the electricity demand in rural or remote area Urban PV program has been launched by Minister of Energy and Mineral Resources on 28 th August 2003 and attended by Minister of Environment and Minister of Research and Technology

13 PROGRAM 1. Rural PV: increasing rural community accessibility to electricity; targeting electricity demand in remote area, small island, by Solar Home System and Centralized PV System (off grid) 2. Urban PV: targeting middle and high class household, real estate, office and commercial buildings, hotel and resort, industry and others for own used (off grid and on grid) 3. On grid PV: offering opportunity to Independent Power Producer to developt Solar Power Plant and selling to the Electricity State Own Company

14 RURAL PV OBJECTIVES AND SCHEMES Objectives: 1. To increase community accessibility to electricity, and is directed to accelerate the rural electrification ratio in order to achieve the ratio of 95% in As a prime mover in rural community economic development in a sustainable path Schemes: 1. Communal PV system (Solar Home System) for a scattered household location 2. Centralized PV system, targeted to a more dense location

15 URBAN PV OBJECTIVES AND OPTIONS Objectives: 1. To help the user/consumer to provide electricity on their own and to decrease the dependency of electricity supply from PLN (The Electricity State Owned Company), especially during the peak load 2. To introduce the utilization of renewable alternative energy, which is clean and environmental-friendly Options: 1. Off-grid: disconnected from PLN grid 2. On-grid: connected to the PLN grid

16 INDEPENDENT POWER PRODUCER OBJECTIVES AND OPTIONS Objectives: 1. To provide oportunity to the private company for producing electricity and selling to PLN (The Electricity State Owned Company) 2. To accelarate the development of renewable energy, reducing the utilization of fossil energy Options: 1. On-grid: connected to local grid (isolated small island) 2. On-grid: connected to the national grid (inter islands)

17 SOLAR PV DEVELOPMENT Schemes YEAR Solar Home System (SHS) 2,390 units (119.5 kwp) 32,555 units (1,555 kwp) 40,598 units (2,029 kwp) 37,270 units (1,864 kwp) 77,433 units (3,871 kwp) Centralized PV System 6 units (21.8 kwp) 5 units (102 kwp) 12 units (240 kwp) *) Implemented by MEMR

18 Total Energy PROJECTION OF ENERGY CONSUMPTION According to National Energy Policy Presidential Decree No. 5/2006 Million BOE , , ,148,90 2,815,80 3, ,483,40 7, Biomass (Biofuel) Biomass (Electricity) Geothermal Hydro Ocean Energy Solar Energy Other Renewable Energy Oil Gas Coal New Energy (nuclear, CBM, etc) Subtotal Biomass Subtotal RE Non Biomass Subtotal RE Total RE & NE

19 ROAD MAP OF SOLAR ENERGY DEVELOPMENT No Development Development according to National Energy Policy (cummulative install capacity in MW) Install Capacity (MW) 20 3 Development Plan (MW) 5.000????? ROAD MAP OF SOLAR ENERGY DEVELOPMENT Total Energy Development Plan (cummulative install capacity in MW)

20 CONCLUSIONS The potential of solar energy in Indonesia is abundant although until now the potential has not been widely utilized. Indonesian government has designated the development of solar energy to fulfill energy needs for areas in Eastern part of Indonesia. The potential of Indonesia s solar energy areas in Eastern Part of Indonesia have not yet been mapped, therefore, Investors wishing to participate in developing solar energy in Indonesia can help provide the study of areas suitable for development of solar energy. The study can help Indonesian government in formulating the policy and implementing the programs as well as attracting investors in the future green energy projects.

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