DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND

Ministry of Energy and Mineral Resources

Directorate General of New Renewable Energy and Energy Conservation

© DGNREE MEMR - 2011

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

SOLAR ENERGY IN INDONESIA

Potentials, Plannings and Framework Conditions




CONDITION OF ENERGY 2011

National Energy

Mix Total in 2011

1066 million BOE

Elasticity of Energy = 1.60

Share of Non Fossil Energy < 5%

1. 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.




NO NON FOSSIL ENERGY RESOURCES

(R)

INSTALLED

CAPACITY (IC)

RATIO IC/R (%)

1 2 3 4 5 = 4/3

1 Hydro 75,670 MW 5,771 MW 7.62

2 Geothermal 28,543 MW 1,228 MW 4.30

3 Mini/Micro Hydro 769.69 MW 217.89 MW 28.31

4 Biomass 49,810 MW 1,618.40 MW 3.25

5 Solar Energy 4.80 kWh/m2/day 20 MW -

6 Wind Energy 3 – 6 m/s 1.87 MW -

7 Uranium 3.000 MW

(e.q. 24,112 ton) for 11 years*) 30 MW 1.00

*) only in Kalan – West Kalimantan

ENERGY RESERVES AND PRODUCTION

NO FOSSIL ENERGY RESOURCES

(R)

RESERVES

(Rv)

RATIO R/Rv

(%)

PRODUCTION

(PROD)

RATIO Rv/PROD (YEAR)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Oil (billion barrel) 56.6 7.99 **) 14 0.346 23

2 Gas (TSCF) 334.5 159.64 51 2.9 55

3 Coal (billion ton) 104.8 20.98 18 0.254 83

4 Coal Bed Methane/CBM (TSCF) 453 - - - -

*) assumed no new reserves are found

**) include Cepu blocks




Forestry 14%

Energy 6%

Waste 6%

Through the

development of new

renewable energy and

implementing energy

conservation by all

sectors

President Commitment on

G-20 Pittsburgh and COP15

To reduce te GHG Emission in 2020

26% 41% Own

efforts

Own efforts and

international

support

COMMITMENT ON CLIMATE CHANGE




Coal,

30.7%

Natural Gas,

21.0%

Oil, 43.9%

NRE, 4.4%

ENERGY POLICY DIRECTION

NRE

Natural Gas

Coal

Oil

21 %

30.7 %

43.9%

4.4 %

NRE

Natural Gas

Coal

Oil

2010* 2015 2020

2025

ENERGY

CONSERVATION

(33.85%)

EN

ER

GY

DIV

ER

SIF

ICA

TIO

N

BAU**

Source: *Estimation 2010, DEN 2010-2025, **BAU EBTKE

PERPRES 5/2006 VISION 25/25

25 %

22 %

30 %

23 %

41.7%

20.6%

34.6%

3.1%

4,300 million

BOE

2,852 million

BOE

1,131.3

million BOE

Oil 42%

Coal 34%

Gas 21%

NRE 3%

Oil 20%

Coal 33%

Gas 30%

NRE 17%

Oil 30%

Coal 22%

Gas 23%

NRE 25%

3,200 million

BOE

20%

30%

33%

17%




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

a. Liquefied Coal,

b. Coal Bed Methane,

c. Gasified Coal,

d. Nuclear,

e. Hydrogen.

Renewable Energy

a. Geothermal

b. Bioenergy

c. Hydro

d. Solar

e. Wind

f. Ocean




AGENDA ON NEW RENEWABLE ENERGY

AND ENERGY CONSERVATION

MAIN AGENDA

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




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

Regulation

Description

1. Law No. 30/2007 on

Energy

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.

2. Law No. 30/2009 on

Electricity

Putting priority to utilize locally available energy

resources for electricity generation

Process of procurement is implemented through direct

selection (without tender)

3. Law No. 27/2003 on

Geothermal

To regulate the management and development of

geothermal energy sources for direct and indirect

utilization

NEW AND RENEWABLE ENERGY POLICY TO ENHANCE

THE DEVELOPMENT OF NEW AND RENEWABLE ENERGY




10

Regulation

Description

4. Minister of Energy

Regulation No.

02/2011 on Electricity

Purchasing Price from

Geothermal

Feed in Tariff (FIT) for the purchasing price of electricity

generated from Geothermal

5. Minister of Energy

Regulation No. 4/2012

on Small and Medium

Scale Power

Generation using

Renewable Energy

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.




PROJECTION OF ENERGY SUPPLY

Types of Energy 2010 2015 2020 2025

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 - - 0.2% 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%




• 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 28th August 2003 and attended by

Minister of Environment and Minister of Research and

Technology

HISTORICAL DEVELOPMENT OF SOLAR ENERGY

IN INDONESIA




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

PROGRAM




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 2025

2. As a prime mover in rural community economic development in

a sustainable path

RURAL PV OBJECTIVES AND SCHEMES

1. Communal PV system (Solar Home System) for a scattered

household location

2. Centralized PV system, targeted to a more dense location

Objectives:

Schemes:




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

URBAN PV OBJECTIVES AND OPTIONS

Objectives:

1. Off-grid: disconnected from PLN grid

2. On-grid: connected to the PLN grid

Options:




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

INDEPENDENT POWER PRODUCER

OBJECTIVES AND OPTIONS

Objectives:

1. On-grid: connected to local grid (isolated small island)

2. On-grid: connected to the national grid (inter islands)

Options:




SOLAR PV DEVELOPMENT

Schemes

YEAR

2005 2006 2007 2008 2009

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




PROJECTION OF ENERGY CONSUMPTION According to National Energy Policy

Presidential Decree No. 5/2006

Million BOE

Total Energy 2010 2015 2020 2025 2030 2040 2050

1,178.19 1,593.15 2,148,90 2,815,80 3,556.80 5,483,40 7,261.80

Biomass (Biofuel) 37.05 74.10 111.15 222.30 296.40 518.70 703.95

Biomass (Electricity) - 7.41 22.23 66.69 148.20 296.40 407.55

Geothermal 22.23 66.69 111.15 222.30 296.40 481.65 629.85

Hydro 7.41 14.82 37.05 81.51 111.15 148.20 177.84

Ocean Energy - - 3.71 7.41 10.37 22.23 37.05

Solar Energy - 3.71 14.82 29.64 44.46 103.74 133.38

Other Renewable Energy - 1.48 7.41 11.12 14.82 29.64 37.05

Oil 585.39 615.03 629.85 666.90 689.13 926.25 1.200.42

Gas 237.12 311.22 407.55 555.75 666.90 889.20 1.037.40

Coal 288.99 496.47 792.87 866.97 1.104.09 1.645.02 2.156.31

New Energy (nuclear, CBM, etc) - - 14.82 88.92 177.84 444.60 741.00

Subtotal Biomass 37.05 81.51 133.38 288.99 444.60 815.10 1.111.50

Subtotal RE Non Biomass 29.64 88.92 177.84 355.68 474.24 785.46 1.015.17

Subtotal RE 66.69 170.43 311.22 644.67 918.84 1.600.56 2.126.67

Total RE & NE 66.69 170.43 326.04 733.59 1.096.68 2.045.16 2.867.67



© DGNREE MEMR - 2011 19

No Development 2012 2015 2020 2025 2030 2040 2050

1

Development according to

National Energy Policy

(cummulative install capacity in MW)

5.000 21.000 41.000 62.000 145.000 186.000

2 Install Capacity (MW) 20

3 Development Plan (MW) 5.000 ? ? ? ? ?

ROAD MAP OF SOLAR ENERGY DEVELOPMENT 2015– 2050

Total Energy 2011 2012 2013 2014 2015

Development Plan

(cummulative install capacity in MW) 20 30 200 2.000 5.000

ROAD MAP OF SOLAR ENERGY DEVELOPMENT 2011– 2015




• 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.

CONCLUSIONS




DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

www.energiterbarukan.net

www.esdm.go.id

Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950

Phone/Fax : 021-5250575

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DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND