SOLAR PV FEED IN TARIFF IN INDONESIA : REGULATION AND FRAMEWORK CONDITIONS

Transcription

1 MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION SOLAR PV FEED IN TARIFF IN INDONESIA : REGULATION AND FRAMEWORK CONDITIONS Directorat of Various New Energy and Renewable Energy Berlin, March 4 th, 2014

2 I. INDONESIA ENERGY CONDITION 3 II. ENERGY POLICY 5 III. NATIONAL PRIMARY ENERGY MIX TARGET 6 IV. EFFORTS TO INCREASE NRE UTILIZATION 7 V. POLICY OF SOLAR PV 8 VI. DEVELOPMENT OF SOLAR PV 9 VII. CURRENT STATUS ON ELECTRICITY TARIFF OF SOLAR PV 10 VIII.OBSTACLES AND CHALLENGES 14 IX. CONCLUSION 15

3 Natural Gas 24,29% NRE 5,03% Crude Oil 46,77% Coal 23,91% Share of Non Fossil Energy 5% 1. National energy mix on 2012: 1237 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); 4. RE utilization and energy conservation implementation is not optimized yet; 5. Public access to energy (modern) is still limited: a. Electrification ratio of year 2012 is % (23.53 % 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. 3

4 Aceh 89,75% Sumbar 78,84% Sumut 88,71% Riau 85,45% Kepri 83,56% Sumsel 77,55% Kalbar 75,62% Kalteng 63,51% Sulbar 70,13% Kaltim 74,40% Gorontalo 65,37% Sulteng 69,97% Sulut 80,24% Malut 76,75% Category : > 60 % % % Papua Barat 62,97% Jambi 72,39% Babel 97,96% Bengkulu 85,13% Lampung 74,70% Banten 87,04% Jakarta 100% Kalsel 79,96% Bali 77,31% Sulsel 80,47% Sultra 61,99% Maluku 72,85% Papua 35,17% Jabar 79,05% Jateng 83,95% DIY 79,59% Jatim 77,91% NTB 62,04% NTT 57,58% REALISASI RENCANA Sep-13 Des Rasio Elektrifikasi 63.00% 64.34% 65.10% 65.79% 67.15% 72.95% 76.56% 80.16% 79.30% 81.40% Target RPJM 67.20% 70.40% 73.60% 76.80% 80.00% ESDM Energy untuk and Kesejahteraan Mineral Resources Rakyat for People s Welfare

5 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. e.g: NEW ENERGY a. Liquefied Coal b. Coal Bed Methane c. Gasified Coal d. Nuclear e. Hydrogen RENEWABLE ENERGY a. Geothermal, b. Hydro, c. Bio energy, d. Solar, e. Wind, f. Others methane f. Ocean wave and current.

6 CURRENT CONDITION TARGET PRESIDENTIAL REGULATION NO. 5/2006 Oil 46.77% Coal 23.91% Natural Gas 24.29% Oil 20% Coal 33% Natural Gas 30% NRE; 17% NRE 5.03% ENERGY ELASTICITY= 1,65 NON FOSSIL ENERGY SHARE 5% Biofuel 5% Geothermal 5% Nuclear, Hydro, Solar, Wind, and Other NRE 5% Liquified Coal 2% ENERGY ELASTICITY LESS THAN 1 IN 2025 OPTIMIZING NEW RENEWABLE ENERGY SOURCES

7 1. IMPROVING POLICY AND REGULATION Some sub-sectors of RE still has not been set. Therefore, the Government continues to improve the regulation of development and utilization of NRE, including the preparation of draft government regulations of NRE. 2. CREATING MARKET through the supply and utilization of variuos NRE, obligating National Electric Company (PT PLN) to buy electricity. 3. FEED-IN TARIFF and CEILING PRICE Declared through the MEMR Regulation, that regulate the FiT and ceiling price of electricity from RE purchased by National Electric Company. 4. THE FUNDING AND OTHER SUPPORTING Providing fund to improve energy acess in remote and isolated area 5. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES Education and training in the field of RE Improving NRE networks, supporting the establishment of organization/association 6. INCREASING RESEARCH IN THE FIELD OF NRE Increase research cooperation; Increase kind of research 7. INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION Cooperation for capacity building and technology transfer Lessons learned for the implementation of NRE policies and programs

8 1) Increasing the share of RE use 2) Application of electricity tariff (ceiling price) 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 government funding 5) Encourage the development of solar PV local industry 6) Solar PV development is priority for regional and remote area SOLAR PV PP1 MW IN BANGLI PROVINSI BALI

9 1. CURRENT CONDITION Solar PV PP installed capacity: MW By Government Funding, in year 2012 : 123 units Solar PV PP (4.8 MWp), in year 2013 : 121 units Solar PV PP (5.27 MWp) 2. DEVELOPMENT PROGRAM By Government Funding, in year 2014 : 154 units Solar PV PP For Independent Power Producer (IPP) : The GoI have already released the ministerial regulation on solar PV PP Tariff (MEMR Regulation No 17 Year 2013)

10 1) As an incentive to encourage development of solar PV, the GoI has already released regulation (MEMR Regulation Number 17 Year 2013 concerning on Purchasing Electricity From Solar PV Power Plant) 2) The tariff levels are based on ceiling price of 25 cent/kwh (using modules with local content < 40%, i.e. considered as imported modules) and 30 cent/kwh (using modules with local content 40%) 3) The application for the ceiling price will be done through bidding process using online system based on certain quota per annum 4) The quotas have already determined by Director General of NRE&EC 5) The total of quotas in is 140 MW, in 80 Locations 6) Currently 5 Locations (12 MWp) have appointed investors through bidding process, and 6 Locations on Bidding Process 7) Website:

11 SUMUT: 2 MWp, 1 PLTS Nias, 2 MWp ACEH: 4 MWp, 3 PLTS Sabang, 1 MWp Sinabang (Simeulue), 2 MWp Singkil, 1 MWp KALBAR: 9.5 MWp, 7 PLTS Ketapang, 2.5 MWp Ngabang, 1 MWp Sanggau, 1.5 MWp Sintang, 1.5 MWp Nanga Pinoh, 1 MWp Sekadau, 1 MWp Putussibau, 1 MWp BABEL: 13 MWp, 2 PLTS Bangka, 2 x 5 MWp Belitung, 3 MWp KALSEL: 2 MWp, 1 PLTS Kotabaru, 2 MWp KALTENG: 2 MWp, 2 PLTS Sukamara, 1 MWp Nanga Bulik, 1 MWp KALTIM: 2.5 MWp, 2 PLTS Nunukan, 1.5 MWp Tanjung Selor, 1 MWp GORONTALO: 2 MWp, 1 PLTS Gorontalo, 2 MWp SULTENG: 2 MWp, 2 PLTS Tolitoli, 1 MWp Kep. Banggai, 1 MWp SULUT: 4 MWp, 4 PLTS Tahuna, 1 MWp Siau, 1 MWp Karakelong, 1 MWp Talaud, 1 MWp MALUT: 7.5 MWp, 6 PLTS Ternate-Tidore, 2.5 MWp Jailolo-Sofifi, 1 MWp Tobelo-Malifut, 1 MWp Bula, 1 MWp Bacan, 1 MWp Sanana, 1 MWp PAPUA: 14.5 MWp, 7 PLTS Jayapura, 6 MWp Biak, 1.5 MWp Kaimana, 1 MWp Serui, 1 MWp Merauke, 1.5 MWp Nabire, 1.5 MWp Timika, 2 MWp PAPUA BARAT: 5 MWp, 3 PLTS Manokwari, 2 MWp Fak-fak, 1 MWp Sorong, 2 MWp RIAU: 8.5 MWp, 6 PLTS Siak, 1 MWp Bengkalis, 1.5 MWp Ranai, 1 MWp Selat Panjang, 1.5 MWp Tj Balai Karimun, 2.5 MWp Tj Batu, 1 MWp SUMBAR: 2 MWp, 1 PLTS Mentawai, 2 x 1 MWp BENGKULU: 1 MWp, 1 PLTS Muko-Muko, 1 MWp JATIM: 4 MWp, 4 PLTS Kangean, 1 MWp Karimunjawa, 1 MWp Raas, 1 MWp Sapudi, 1 MWp NTB: 17 MWp, 5 PLTS Sumbawa, 3 MWp Lombok Utara, 2 MWp Lombok Timur, 4 MWp Lombok Barat, 4 MWp Sistem Bima, 4 MWp NTT: 14 MWp, 9 PLTS Kupang, 5 MWp Atambua, 1 MWp Rote, 1 MWp Alor, 1 MWp Adonara, 1 MWp Sumba Timur, 1 MWp Larantuka, 1 MWp Maumere-Ropa-Ende, 2 MWp Bajawa-Ruteng-Labuan Bajo, 1 MWp SULSEL: 1 MWp, 1 PLTS Selayar, 1 MWp SULTRA: 13 MWp, 7 PLTS Bombana, 1 MWp Kendari, 2 x 3 MWp Kolaka, 2 MWp Bau-Bau, 2 MWp Raha, 1 MWp Wangi-Wangi, 1 MWp MALUKU: 9.5 MWp, 6 PLTS Ambon, 4.5 MWp Seram, 1 MWp Namlea, 1 MWp Tual, 1 MWp Dobo, 1 MWp Saumlaki, 1 MWp

12 NATIONAL ENERGY MIX MEMR REGULATION NR 17/2013 (PRICE, QUOTA, BIDDING) DECREE OF DG NRE&EC (QUOTA, TENDER, AUCTION WINNER) PT. PLN (ELECTRICITY PURCHASING) BIDDING PROCESS OF QUOTA CONSTRUCTION OF SOLAR PV PP APPOINTMENT OF IPP PPA

13 1. To make escrow account (20% of invesment total). 2. To finish financial close in 3 month after Power Purchase Agreement (PPA) 3. To start construction in 3 months after financial close 4. To reach Commercial Operation Date (COD) in 18 months after PPA. If no reached COD in 18 months, so that can be extended until 12 months, but will be charged by decreasing price : Tardiness until 3 months will be charged decreasing price of 3% Tardiness > 3 months - 6 months will be charged decreasing price of 5% Tardiness > 6 months will be charged decreasing price of 8% 5. No allowed to transfer ownership to another business entities.

14 1. Solar PV initial investment is still high, therefore cannot compete with conventional power generation (fossil fueled power generation); 2. The incentive mechanism is needed to develop industry which is oriented for solar energy utilization; 3. Solar PV system efficiency is relatively low; 4. Photovoltaic technology is not yet implemented in industrial scale; 5. Various technical specifications of PV in the market needs standardization. 6. Lack of education/socialization of solar PV application to the community; 7. Lack of local government and community in understanding solar PV technology and it s management.

15 1) The potential of solar energy in Indonesia is abundant although until now the potential has not been widely utilized. 2) Indonesia government invite investors wishing to participate in developing solar PV in Indonesia. 3) The development of solar PV program in Indonesia is still in its early stage. 4) To encourage development and utilization of solar PV, the Government of Indonesia have already released MEMR regulation about ceiling price. 5) Indonesia government has determined the development of solar PV to fulfill energy needs for rural/remote/isolated areas. 6) For urban areas, Indonesia government will do assessment on PV roof-top systems.

16 MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : bahan_ebtke@yahoo.com Energy and Mineral Resources for People s Welfare