Tapping Indonesia s agro-waste potential with innovative technology

Transcription

1 Tapping Indonesia s agro-waste potential with innovative technology PEP Information Workshop 10 September

2 EMPOWERING BIOENERGY: POLICY FRAMEWORK & NEW DEVELOPMENTS Zulfan Zul, Head of Bioenergy Planning, Ministry of Energy and Mineral Resources Indonesia

3 Contribution to national economy through development of bioenergy industries Increasing the use of biofuel as a fossil fuel substitution MAIN VISION OF BIOENERGY DEVELOPMENT Development of a bioenergy based power plant (as base load ) Utilization of organic waste as source of energy Increasing the sustainability supply of bioenergy feedstock through development of energy farms/forest

4 The role of bioenergy -as a part of renewable energy- on national energy mix will be increased significantly under National Energy Policy 100% 90% 80% 70% 60% 50% 40% 30% 20% by 2015 NRE: 23% (Bioenergy: 10%) Bioenergy by 2050 NRE: 31% (Bioenergy: 14%) New and Renewable Energy (NRE) Coal Gas Product of bioenergy: 1. Various products, for fuel, heat and electricity. Bioenergy can be directly utilized in energy conversion systems/existing equipment(biomass on power plant, biofuel in vehicles). 2. The fuel from bioenergy can be utilized in liquid, gas and solid form; adapting to the needs. 3. Direct involvement of the community (progrowth, pro-job, pro-poor) 10% 0% Oil Natural Gas Coal Bioenergy Geothermal Hidro Energy Solar Energy Ocean Energy Other RE (Wind) NE (Nuclear, CBM, etc) Oil 4. Source of bioenergy feedstock depends on human effort(not depend on nature) Note: Based on the draft of Government Regulation on National Energy Policy that has been approved by Parliament and is in the process of being signed by the President

5 POLICYREGULATION concerning BIOENERGY Law NO. 30 year 2007 Concerning Energy Presidential regulation NO. 5 year 2006 about National energy Policy Presidential Instruction NO. 1 year 2006 Concerning supply and utilization of biofuels MEMR regulation NO. 25 year 2013 concerning enhancement of biofuel utilization (biodiesel Law NO. 30 year 2009 Concerning Electricity Government Regulation no 14 year 2012 concerning supply and utilization of electricity MEMR Regulation No 4 year 2012 dan NO. 19 year 2013 Concerning Feed In Tarif for biomass, biogas and Municipial solid waste Power plant Priority of utilization for new and renewable energies Bioenergy target within 2025, bioenergy market is 5 % Instructions Related to the Minister, Governor and Regent / Mayor to take steps in order to accelerate the provision and utilization of biofuel Mandatory use of biofuel in the transportation sector, Industrial, Commercial, and Power Generation Rights and obligations of local and center government in NRE development Development of NRE without any auction and can be with direct appointment The price of electricity purchased by PT. PLN (Persero) from Biomass, Biogas and Municipal Solid Waste

6 IMPLEMENTATION OF MANDATORY POLICY THROUGH MEMR REGULATION 25/2013 Capacity (KL) Millionen Biofuels domestic usage mandatory policy: Fossil fuel substitution/reduce oil import creating the market of biofuel industrial development improvement of domestic economy Biodiesel Demand Biodiesel Installed Capacity shortages of supply installed capacity (BaU conditon) great opportunities BIOFUEL PRODUCTION AND UTILIZATION

7 Indonesia has implemented biodiesel blending B-10 on transportation and intheindustrysectorandb-20onelectricity. Recently, a new Market Price Index for Biodiesel which blends with subsidized fuel was launched. Now the government is in the process of preparing the implementation of B- 20 on 2016 by conduct an engine testing together with automotive engine principal, automotive and expertise association, university and research institution. Implementation B-25 will be conducted on 2025 Bioethanol utilization/blending becomes a trending issue in many countries. Implementation of Bioethanol blending has increased significantly in many countries There is no doubt related to technical aspect of Bioethanol blending Preparation for E-0,5 for subsidized fuel and E-1 for on-subsidized fuel will be finished shortly Revision of Market Price Index of Bioethanol that blends with subsidized fuel still under finalization with Ministry of Finance

8 Global demand of biofuel (biodiesel) is increasing Indonesia is one of the leading countries in biodiesel blending B-10 and will be increased to B-20 for transportation B-20 for electricity Source: Biofuel Market and Outlook, September 2013 B-20 for electricity generation

9 NAD 89,7 2% Sumbar 80,22% Jambi 75,14% Sumut 87,62% Bengkulu 77,53% Lampung 77,55% Riau 77,56% Banten 86,27% Current Rasio Elektrification Kepri 69,66% Kalbar 95,55% Sumsel 70,90% Babel 97,13% Jakarta 99,99% Kalteng 66,21% Kalsel 81,61% Sulbar 67,60% Bali 78,08% Jabar Jateng DIY Jatim 80,15% 86,13% 80,57% 79,26% Kaltim 80,45% Gorontalo Sulut 67,81% 81,82% NTB 64,43% Sulsel 81,14% Sulteng 71,02% Sultra 62,51% NTT 54,77% Malut 87,67% Maluku 78,36% Category : Papua 36,41% > 70 % % < 50 % Papua Barat 75,53% year Realisasion (%) 65,79 67,15 72,95 76,56 80,51 Target (%) 81,51 83,18 86,37 89,56 92,76 95,98 99,2

10 25 POMs 980 ton 26 POMs 1645 ton POTENCY OF BIOELECTRICITY FROM PALM OIL MILL 92 POMs 3815 ton 140 POMs 6660 ton 42 POMs 2245 ton FFB/Hou r 1 POMs 40 ton 65 POMs 5475 ton 29 POMs 1545 ton 6 POMs 260 ton FFB/Hou r 7 POMs 590 ton 4 POMs 360 ton 3 POMs 140 TPH 19 POMs 990 ton 10 POMs 375 ton 1 POMs 60 ton 16 POMs 1235 ton 58 POMs 3555 ton 1 POMs 30 ton 43 POMs 3100 ton FFB/Hou r 15 POMs 770 ton 2 POMs 150 ton -There are 686 units of palm oil mills - Average of capaticiy 30 45ton/hour of FFB processed -20% CPO, 50% of POME, 30% ( solid waste ) 3 POMs 260 ton

11 INDONESIA HAS HUGE BIOMASS POTENTIAL FOR ELECTRICITY No Potential (MWe) Unit Sumatera Kalimantan Jawa-Bali- Madura Nusa Tenggara Sulawesi Maluku Papua Total 1 Palm oil MWe 2 Sugar cane MWe 3 Rubber MWe 4 Coconut MWe 5 Rice husk MWe 6 Corn MWe 7 Cassava MWe 8 Wood MWe 9 Sapi MWe 10 MSW MWe Total potential MWe

12 BUSINESS PATTERN for ELECTRICITY GENERATION : BIOMASS, BIOGAS & MUNICIPIAL SOLID WASTE POWER PLANT INDEPENDENT POWER PRODUCERS (IPP) BIOMASS, BIOGAS & MUNICIPIAL SOLID WASTE RESOURCES Electricity MINI GRID OFF GRID/ Pilot & demontration Pola 1: INDEPENDENT POWER PRODUCERS mechanism that sell the whole electricity to state own enterprise(pt PLN(Persero)) Pola 2: MINI PRODUCERS/MINI GRID decentralized distribution of electricity within certain area. Pola 3: Off grid/pilot& demontration Pilot or demontration of biomass, biogas power plant.

13 Current policy Feed in Tariff (FiT) Installed Capacity (MW) , , reducing the use of fossil fuels as fuel for power plants and increasing national security of supply of electricity Current capacity of bioenergybased on-grid power plant in year 2013 was 90.5 MW (palm waste 76 MW ;municipal solid waste 14.5 MW ) and based off-grid power plant was 1,626 MW. FEED-IN TARIFF FOR BIOENERGY BASED POWER PLANT (MEMR Regulation No. 4 Year 2012 and No. 19 Year 2013) No Energy Capacity Electricity Tariff Note Medium Voltage 1. Biomass until 10 MW Rp. 975,- / kwh X F 2. Biogas until 10 MW Rp. 975,- / kwh X F Municipal 3. Solid Waste (MSW) Municipal 4. Solid Waste (MSW) Low Voltage Non Municipal Solid Waste until 10 MW Rp ,- / kwh Zero waste *) until 10 MW Rp ,- / kwh Landfill *) 1. Biomass until 10 MW Rp ,- / kwh X F 2 Biogas until 10 MW Rp ,- / kwh X F Municipal 3 Solid Waste (MSW) Municipal 4 Solid Waste (MSW) Note : * ) Non Municipal Solid Waste until 10 MW Rp ,- / kwh Zero waste *) until 10 MW Rp ,- / kwh Landfill *) Based on Act No. 18 Year 2008 concerning to Waste Management. F as an incentive factor based on the region where the power plant installed Jawa, Bali, and Sumatera region F = 1 Kalimantan, Sulawesi, NTB and NTT region F = 1,2 Maluku and Papua region F = 1,3

14 FINANCIAL INSTRUMENTS SUPPORT Income Tax Value Added Tax Import Duty Tax Borne by Government Reduced net income for 30% of total investment accelerated depreciation Imposition of Income Tax on dividend p aid to Foreign Taxable at 10% compensation for losses in certain circumstances Exemptions of VAT for Taxable Goods, machinery and equipment for RE utilization (not included spare parts) Exemptions for Import Duty of Goods and Machinery for development and capital investment Capital Goods Imports for construction and development of electricity industry Regulated in State Annual Budget Law and its implementing regulations

15 CORPORATE TAXPAYERS can get facilities: EXEMPTION OR REDUCTION OF CORPORATE INCOME TAX PIONEER INDUSTRIES Having a new investment plan min. IDR 1 trillion Placing funds in the Indonesian bankingmin 10% fromthe total capital investment plan Existed as ENTITY INDONESIA EXEMPTION OF CORPORATE INCOME TAX 5-10 tax year After the end of Corporate Income Tax exemption facility REDUCTION OF CORPORATE INCOME TAX 50% of Income Tax Payable for 2 tax yearh Minister of Finance may provide facilities Corporate Income Tax exemption or reduction for a period EXCEED predetermined period of time Industry of Basic Metals Manufacutre Industry of Oil Refining and / or Basic Organic Chemicals sourced from Oil and Natural Gas Industry of Machinery INDUSTRY OF RENEWABLE RESOURCES FIELD Industry of Communications Equipment PIONEER INDUSTRIES *) The facility can be utilized if: 1. Had executed the entire capital investment 2. Has been produced commercially

16 Feed in Tariff (FiTconsist of : A. Base tariff B. Regional Factor (FR) C. Diesel Adder (DA) FR as an incentive factor based on the region where the power plant installed Java region F = 1 Sumatera region F = 1,1 Sulawesi & Kalimantan region F = 1,2 Other Island F = 1,3 FiT : Base tarif X FR + DA Dieseladder insentive as ndiesel substitutio Diesel Portion Factor (FPD) Diesel Adder (IDR/kWh ) FiT principles : - Aim to increase the supply of electricity with renewable energy, especially in the eastern regions and islands - To replace diesel and serves as a base load (fuel substitution). thus lowering the BPP PLN in the region that use diesel - Not to add to the national electricity production costs (focused on the area of concentration is high diesel use). - Fit applicable fixed and now account for the majority of cost escalation calculations aside BPP inflation factor the anticipated increase in operating costs years contract Base value 400 diesel portion 5% 0 0 diesel portion 5% s.d. 25% diesel portion 26% s.d. 50% diesel portion 51% s.d. 75% diesel portion s.d % Portion factor Diesel (FPD) is calculated based on the electricity generation portion of the diesel generator (kwh) of total generation in the system / grid of PLN in the local area where biomass and biogas plants will be connected, based on the data for 12 months before signing of PPA (power Purchase Agreement

17 ACHIEVEMENT OF BIOENERGY BASED POWER PLANT DEVELOPMENT UNTIL 2013 Area and Source of Biomass Sumatera Palm oil mills POME Sugarcane Pulp and paper Capacity Off-Grid(MW) Capacity On-Grid(MW) Total (MW) Kalimantan Palm oil mills Jawa-Bali Palm oil mills Sugarcane MSW Sulawesi Palm oil mills Sugarcane Papua Palm oil mills 4-4 TOTAL , , , ,

18 Example of Biogas Power Plant Utilization of palm waste, reducing CH4 emissin (open lagoon cover lagoon), substitute the diesel power supply within the area, decreasing electricity production cost, and power supply to the people Teknologi Anaerob Buffle Reactor covered lagoon Theare are alot in the off-grid area such as north sumatera and riau procinces EPCC basicly from local, we re building 3 biogas power plant in PT KARYA MAS ENERGY (KME), TANDUN Mill, RIAU Biogas : 750 m 3 /hour (60% CH 4 ) Utilization : 1 MW for palm kernel oil PT AUSTINDO NUSANTARA JAYA The First on-grid of biogas power plant

19 IMPLEMENTASI PROGRAM PENGEMBANGAN LISTRIK BERBASIS BIOENERGI PLTU PT. Growth Sumatra Industry, Medan Unit 1, Excess Power 6 MW, COD on December 2008 Unit 2, Excess Power 9 MW, COD onnovember 2010 PLTU PT. Growth Asia, Medan Unit 1, Excess Power 10 MW, COD on October 2011 Unit 2, Excess Power 10 MW, COD onjune 2012 PLTU PT. Rimba Palma Sejahtera Lestari, Jambi Finish on construction PLTU 2x15 MW.

20 CURRENT ISSUES ON BIOENERGY DEVELOPMENT Pricing policy for bioenergy Development of integrated bioenergyproduction facility with dedicated feedstocks Supply of sustainable bioenergy feedstock Regulating waste/biomassa for export purposes Availability of transmission network/national grid Business regulation on non liquid bioenergy product Infrastructure and technology

21 MINISTRY OF ENERGY AND MINERA RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION JALAN PEGANGSAAN TIMUR NO. 1, MENTENG, JAKARTA Phone: Fax: zulfan2010@yahoo.com