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Energy Policy for Indonesia Energy Policy for Indonesia Sustainable DevelopmentSustainable Development
ZuhalZuhalRector of Rector of thetheUniversityUniversity ofof Al Azhar IndonesiaAl Azhar Indonesia
Professor at Professor at the the Engineering FacultyEngineering Faculty--University of IndonesiaUniversity of Indonesia
BackgroundBackgroundWorldWorld’’s future economic growth is heavily depends on the s future economic growth is heavily depends on the energy and electricity useenergy and electricity useThe depleting reserves and high price for oil had significant The depleting reserves and high price for oil had significant effect on the role of oil in the energy mix.effect on the role of oil in the energy mix.The current centuryThe current century——an era of environmental awareness an era of environmental awareness ((Kyoto Protocol in 1997Kyoto Protocol in 1997))——requires energy resources to satisfy requires energy resources to satisfy the worldthe world’’s future energy demands.s future energy demands.Changes in the electricity sector, international concern over Changes in the electricity sector, international concern over climate change, and domestic concerns about energy security climate change, and domestic concerns about energy security provide opportunities for renewable energy sources to increase provide opportunities for renewable energy sources to increase their market share.their market share.By 2030, the world is projected to consume twoBy 2030, the world is projected to consume two--thirds more thirds more energy than today, with developing countries replacing the energy than today, with developing countries replacing the industrialized world as the largest group of energy consumers.industrialized world as the largest group of energy consumers.
Structure of Primary Energy Demand (%)Structure of Primary Energy Demand (%)(Business as usual)(Business as usual)
2000 2010 2020
World (%) Indonesia (%) Indonesia (%) Indonesia (%)
Oil 38 53 49 Decrease (Decrease (-- -- ))
Gas 24 29 23 Increase (++)Increase (++)
Coal 24 15 21 Flat (=)Flat (=)
Hydro 6 2 5 Increase (++Increase (++++))
Nuclear, Geothermal & others
6 1 2 Increase (+++)Increase (+++)
Type of Primary energy
Indonesian Energy DilemmaIndonesian Energy Dilemma
Hydro CarbonResources
DomesticNeeds
EnergyFor
Export
•Fuel•Electricity
CommercialFunction
SocialFunction
Foreign Exchange
IndustrialProducts
ForExport
The Indonesian government aimsThe Indonesian government aims
To guarantee the energy availability through To guarantee the energy availability through for domestic needfor domestic needTo improve quality servicesTo improve quality servicesTo guarantee long term sustainability of To guarantee long term sustainability of energy supplyenergy supplyTo guarantee energy for export purposesTo guarantee energy for export purposesTo conserve and preserve the environment.To conserve and preserve the environment.
Government PolicyGovernment Policy
Energy diversification
Energy Conservation
Energy Price
Environment
CNG and LPGCNG and LPGElectrification of train systemsElectrification of train systemsUsing renewable energy sources (Castor Oil)Using renewable energy sources (Castor Oil)
0
200000
400000
600000
800000
1000000
1200000
1995 2010 2020
Tho
usan
d B
OE
.
ResCommercialIndustryTransportation
Energy Diversification in Transportation SectorEnergy Diversification in Transportation Sector
Diversification initiatives 1990’s:-Building coal power plant -Building natural gas power plant-Building more Geothermal power plant -Privatization of non petrol power plant
Before 1980Petrol udfor electricity
77%
In 1993Petrol used for electricity
54%In 1997Petrol used for electricity
21%
In 2005Petrol used for electricity
30%
In 2010Petrol used for electricity
5%
19801993 1998 2005 2010
Before 1980:-Mostly using Petrol-Small Hydro-No Coal
Crisis:-Increase sale-No additional Power plant-Covered by petrol based plant
Diversification initiatives 1980’s:-Building coal power plant-Building big Hydro plant-Building Geothermal power plant in Kamojang
Diversification initiatives 2000’s:-Building more coal power plant -Building more natural gas power plant-Building liquid natural gas power plant -Privatization of non petrol power plant-Conversion of petrol power plant into gas
Sources: Kompas Newspaper
Energy diversification in Electricity SectorEnergy diversification in Electricity Sector((Reduce Petrol UsedReduce Petrol Used))
5%54%
77%
21%30%
Indonesia Energy Balance 2006-2015
0
20000
40000
60000
80000
100000
120000
140000
160000
2006 2010 2015Year
GW
h
Fuel OilGasCoalGeothermalHydro
Source: http://202.162.220.3/statistik/statistik.asp
Electricity production by each energy source
0
5000
10000
15000
20000
25000
30000
HSD IDO MFO Coal Gas Hydro
Type of fuel
GW
h
Outside JavaJava
Source: http://202.162.220.3/statistik/statistik.asp
Concentration Map of NO2Concentration Map of NO2 (DNC)(DNC)
Java Java (2021)(2021)
JavaJava(( 1991)1991)
Concentration Map of Concentration Map of SO2 (DNC)SO2 (DNC)
))
JavaJava(( 1991)1991)
JavaJava(2021)(2021)
EnvironmentEnvironmentJavaJava--Bali IslandBali Island:: New ApproachNew Approach
Use low sulfur coalUse low sulfur coal--supplysupplyApply high thermal efficiency processApply high thermal efficiency processUse anti pollution equipmentsUse anti pollution equipments
Electrostatic precipitatorElectrostatic precipitatorFluidized bed boiler technology & other high tech Fluidized bed boiler technology & other high tech BoilersBoilersThe importance of nuclear option (need support for The importance of nuclear option (need support for geogeo--technique study)technique study)Burn low quality coal in Sumatra (nine months) and Burn low quality coal in Sumatra (nine months) and use AC/DC cable to Javause AC/DC cable to Java--Bali IslandBali Island
EnvironmentEnvironment
Outside JavaOutside Java--BaliBaliThe role of rural electrificationThe role of rural electrificationIncrease the use of new & renewable energy Increase the use of new & renewable energy sourcessources
Research and DevelopmentResearch and Development
Ocean wave energyOcean wave energyWind energyWind energyBioBio--diesel energydiesel energyHybrids Hybrids BiomassBiomassEnergy garden (Castor oil plant)Energy garden (Castor oil plant)Hydrogen (but it is still far reach and very Hydrogen (but it is still far reach and very expensive)expensive)
ConclusionConclusionThe Indonesian energy sector is still heavily dependent The Indonesian energy sector is still heavily dependent on nonon non--renewable fuel such as fossil fuels and natural renewable fuel such as fossil fuels and natural gas as a source of energy gas as a source of energy
These nonThese non--renewable fuels are finite and gradually renewable fuels are finite and gradually depleting and also contribute to the emission of depleting and also contribute to the emission of greenhouse gas. greenhouse gas.
The implementation of various policies and programs by The implementation of various policies and programs by the government of Indonesia has increased the the government of Indonesia has increased the awareness of the importance of the role of renewable awareness of the importance of the role of renewable energy in a sustainable energy system energy in a sustainable energy system
For Indonesia archipelago the energy solution is really For Indonesia archipelago the energy solution is really depend on its geographical position and natural depend on its geographical position and natural resources resources
Thank YouThank You