2014ENERGY EFFICIENCY IMPLEMENTATION TO REDUCE GHG EMISSION

Energy and Mineral Resources for People’s Welfare

HARRIS

Directorate of Energy Conservation

Directorate General of New Renewable Energy and Energy Conservation

Presented at:

WORKSHOP ON TECHNOLOGY TRANSFER FOR

LOW CARBON TECHNOLOGY IN INDONESIA

Jakarta, 4 November 2014

ENERGY EFFICIENCY IMPLEMENTATION

TO REDUCE GHG EMISSION


CONTENTS



The chart is based on Draft National Energy Policy

0.0

500.0

1,000.0

1,500.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

200

220

240

260

2009 2011 2013 2015 2017 2019

Economic Growth

Population Growth

Population (Million)

0

1000

2000

3000

4000

2009 2011 2013 2015 2017 2019

GDP(Trllion IDR)

2,177

3,943

6.1%

256

2311.1%

Energy (Million BOE)

712

1,316

7.1%

Energy Growth

ENERGY DEMAND CONTINUE TO INCREASE


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Intensitas EF 366 370 352 360 364 340 327 327 302 321 343 339 336

Intensitas EP 523 535 531 545 527 512 487 487 473 470 509 502 497

366 370 352 360 364

340 327 327

302 321

343 339 336

523 535 531

545 527

512 487 487

473 470

509 502 497

-

100

200

300

400

500

600

BO

E/B

illio

n R

up

iah

Note:

- exclude biomass and non-energy used

- *) temporarily data on December 2013

PE Intensity

FE Intensity

*)

PRIMARY AND FINAL ENERGY INTENSITY


Sector

Energy

Consumption Per

Sector Year 2012

(Million BOE) *)

Potential of EC

Target of Energy

Conservation

Sectoral (2025)

Industry 305 (39,7%) 10 – 30% 17%

Transportation 311 (40,4%) 15 – 35% 20%

Household 92 (12%) 15 – 30% 15%

Commercial 34 (4,4%) 10 – 30% 15%

Others

(Agriculture,

Construction, and

Mining)

26 (3,4%) 25% -

source: Draft National Energy Conservation Master Plan (RIKEN) 2011

Note:

- exclude biomass and non-energy used

- *) temporarily data on December 2013


• National Commitment to reduce the GHG Emission in 2020

26%

(767 mln Ton)41%

(26%+15%)Own efforts

Own efforts and

international support

Through the development of

new renewable energy and

implementing energy

conservation by all sectors

Presidential Reg No. 61/2011

RAN-GRK

Presidential Reg No. 71/2011 GHG Inventory and MRV

Global Warming and Climate Change has been a Hot Issue

NATIONAL COMMITMENT TO REDUCE GHG EMISSION



MINERAL & COAL

OIL &GAS

NRE&EC• Mandatory of Energy Management in energy-intensive industry (10.16 mill ton CO2)

• Partnership in Energy Conservation - 1303 buildings & industry (2.11 mill ton CO2)

• Energy Efficient Appliances 21,43 GWh (10.02 Million ton CO2)

• PLTMH 130,4 MW (0.61 Million ton CO2)

• PLTM 692 MW (3.25 Million ton CO2)

• PLTS 326.78 MW (0.29 Million ton CO2)

• PLTB 59.2 MW (0.06 Million ton CO2)

• PLT Biomass 16.9 MW (0.01 Million ton CO2)

• DME 700 villages (0.18 Million ton CO2)

• Biogas 31,400 unit (0.13 Million ton CO2)

• 657.83 MMSCFD gas for public transport in 9 cities & 21.16 ton LGV/day

in 2 cities (3.07 Million ton CO2)

• City Gas for 94,500 household in 24 locations (0.15 Million ton CO2)

• Mini LPG Plant 2.2 MMSCFD (0.03 million ton CO2)

26.82 million

ton CO2

3.25 Million ton CO2

2.73Million ton CO2Post-mining reclamation 72,500 ha (2.73 Million ton CO2)

TOTAL

32.8Million ton

CO2

GHG EMISSION REDUCTION TARGET IN ENERGY SECTOR


NO MITIGATION ACTION

2010 - 2012 2013

UnitEmission Reduction

(ton CO2e)Unit

Emission Reduction

(ton CO2e)

1 Mandatory in Energy Management 4 Companies 309.911,26 0 309911.26

2 Partnership Program on Energy Conservation 452 objects 740000 159 objects 781,400

3 Energy Efficient Appliances 855,81 GWh 703753.25 1681.94 GWh 1.384236.62

4 Renewable Energy Development 654458.57 1125754.77

5 Biogas Utilization 1445400 m3 12673 4615337.4 m3 20056

6 Gas for Public Transport 10 MMSCFD 46400 10 MMSCFD 92800

7 City Gas 57448 SR 1900 15623 SR 3500

8 Mini LPG Plant 0 0 0 0

9 Post-Mining Reclamation 25.351,7 Ha 953221.5 6856.34 Ha 1211019.9

10 Biodiesel Utilization 669.398 Kilo Liter 10723761048422 Kilo

Liter1567468

11 Presidential Instruction No. 13/ 2011 on Energy and Water

Saving34.62 GWh 25.65 30.76 GWh 23316.18

12 Mitigation Action in Electricity Sector

Large Hydro PP 3.7 MW 5500.82 0 5500.82

Clean Coal Technology 1525 MW 141739.19 0 141739.19

Cogeneration 511.86 MW 1465593.58 147.86 MW 1.465593.58

13 Kerosene to LPG Conversion Program 3905931 Ton LPG 17679475.70 3274594 Ton

LPG19929457.88

TOTAL23763852.50

(79.21%)28062906.14

(93.54%)

GHG EMISSION REDUCTION 2010-2013


-

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Emis

sio

n R

edu

ctio

n(M

illio

n t

on

CO

2)

Total Emission Reduction from Energy Sector Emission Reduction from RAN-GRK Activities RAN-GRK

GHG EMISSION REDUCTION FROM ENERGY SECTOR

TARGET VS OUTCOME 2010-2013



Oil42%

Coal34%

Gas21%

NRE3%

21%

27 %

48%

4 %

NRE

Gas

Coal

Oil

2011 2015 20202025

ENERGY

CONSERVATION

EN

ER

GY

DIV

ER

SIF

ICA

TIO

N

BAU Presidential

Regulation

No. 5/2006NEP

23 %

30%

25%

22%

2932

Million BOE

1237

MillionBOE

Oil20%

Coal33%

Gas30%

NRE17%

3200

Million BOE

20%

30%

33%

17%

48% Oil

27% Coal

21% Gas

4% NRE

25% Oil

30% Coal

22% Gas

23% NRE

2419 MBOE

1649 MBOE

20,6%

34.6%

41.7%

3,1%

5102

Million BOE

Target in Energy Conservation year 2025:

- Energy elasticity < 1

- Reducing the energy intensity 1% per year

NATIONAL POLICY DIRECTION BASED ON PRESIDENTIAL

REGULATION. No.5/2006

AND NATIONAL ENERGY POLICY (NEP)


1982

1995

2006

POLICY ON

ENERGY CONSERVATION 2007

Presidential Instruction No. 9/1982 concerning on Energy Conservation

Master Plan of National Energy Conservation

Law No. 30/2007 concerning on Energy

2008

Presidential Regulation No. 5/2006 concerning

on National Energy Policy

2009 Govt. Regulation No.70/2009 concerning on Energy Conservation

2002 Law No. 28 / 2002 concerning on Building

Presidential Instruction No. 2/2008 concerning on Energy

and Water Saving

2011 Presidential Instruction No. 13/2011 concerning on Energy and Water

Saving

2012 & 2013 Ministry of EMR Regulation concerning on Energy and Water Saving• Ministry of EMR Regulation No. 13/2012 concerning on Electricity Usage Saving

• Ministry of EMR Regulation No. 14/2012 concerning on Energy Management

• Ministry of EMR Regulation No. 15/2012 concerning on Water Usage Saving

• Ministry of EMR Regulation No. 01/2013 concerning on Control of Subsidized Fuel Utilization

Ministry Of EMR Decree No. 4051K/07/MEM/2013 concerning on Catur Dharma Energi


“Everyone is entitled on

energy”(Article 9.1)

“Government, local government,

private and public entities are

responsible in energy

conservation” (Article 25)

Government and/or local government

will provide energy through

diversification, conservation and

intensification of energy and energy

resources” (Article 20)


RESPONSIBILITIES OF

GOVERNMENT, LOCAL

GOVERNMENT, PRIVATE

AND PUBLIC

IMPLEMENTATION

OF ENERGY

CONSERVATION

STANDARD &

LABEL

FACILITIES,

INCENTIVES AND/OR

DIINCENTIVES

MONITORING AND

GUIDANCE

43 5

Gov’t Reg. No.70/2009 on

ENERGY CONSERVATION

1 2

Energy users with energy consumption ≥ 6.000 TOE per

year is obliged to implement energy conservation through

energy management:

• Appoint energy manager;

• Develop energy conservation program;

• Conduct energy audit regularly;

• Implement energy audit recommendation;

• Report the result of energy conservation

Law NO. 30 / 2007

On ENERGY

The implementation of efficient

energy technology is through the

development and implementation of

standard and labeling on energy

appliances



ENERGY

CONSERVATION

PARTNERSHIP

PROGRAM

ENERGY

SAVING

CAMPAIGN

IMPLEMENTATION

SNI: ISO 50001

ENERGY MANAGER

AND AUDITOR

STANDARD

AND

LABELING

MAIN PROGRAMS ENERGY EFFICIENCY


4 stage rating system

EE level

Product model

Registration No.

To Introduce Energy-Saving Rate as a Guide for Consumers

Logo: “More Star, More Efficient”

SNI 04-6958-2003


Purpose:

• To limit the distribution of inefficient product.

• To limit the inefficient product import;

• To encourage importer and local manufacturer to make efficient

products;

MEPS for 2014:

MEPS for Refrigerator and Air Conditioning


• A regional cooperation coordinated by UNDP to support the

development and harmonization of EE standard and labeling for 6

(six) appliances: CFL, AC, Refrigeration, Fan, Ballast, Motor, and Rice

Cooker)

• Support the establishment 4 accredited test laboratorium (1 tes lab in

the process)

• Establish Forum for Test Laboratorium, consists of State and Private

Test Lab, MEMR, Ministry of Industry, Ministry of Trade, National

Standardization Body

BARRIER REMOVAL TO THE COST – EFFECTIVE

DEVELOPMENT AND IMPLEMENTATION OF ENERGY

STANDARD AND LABELING (BRESL)


In continuation and inline with HCFC Phase-out Management Plan

(HPMP) for Indonesia, MEMR in cooperation with UNDP develop

PENHRA to improve energy efficiency of refrigeration and air

conditioning (RAC) equipment and appliances manufactured and sold

in Indonesia.

Project aims to phase – out HCFC and introduce of alternative

technologies that will involve product redesign, technology conversion

including modification of production lines and processes, technical

assitance, trials and testing, training and certification.


LOW CARBON MODEL TOWN

In 2013, Government of Indonesia decided to establish Bitung Special Economic

Zone at Tanjung Merah and Manembo-nembo District, as part of the Master Plan for

the Acceleration and Expansion of Indonesian Economic Development (MP3EI). The

Bitung Special Economic Zone is the area that will be developes as Low Carbon

Model Town .

As a part of Government of Indonesia’s effort to implement energy efficiency program

and in the spirit of APEC cooperation, Indonesia would like to propose the city of

Bitung in North Sulawesi as the nominated LCMT project in 2015

Several measures have been implemented by the City of Bitung related to the

implementation of low-carbon development, such as:

Development of renewable energy power plants (Microhydro Power Plants, Geothermal PPs and

Photovoltaic PPs)

Application of solar and wind power for public street lighting

Issuance of Local Government Regulation regarding 30% green open space in commercial buildings

and residential areas, and

Planting trees for reforestation


SMART STREET LIGHTING INITIATIVE

• Goals: to reduce GHG emissions by 425.000 tCO2e by 2020 (scaling up in 22 cities)

through improving levels of energy efficiency of public street lighting.

• Supported by GIZ under the “Policy Advice on Climate Change and Environment”

(PAKLIM)

• Registered as Indonesia’s NAMA Seeking Support for Implementation in the

UNFCCC’s NAMA Registry on May, 2014

• Measures in the SSLI:

Increase the capacity of SSLI partner cities to manage energy efficient street lighting

Develop financing proposals to finance more energy efficient street lights (i.e. LED) which endorsed

the city government

Develop draft standards on product performance and safety for LED street light

Develop Guideline on Energy Service company (ESCO) contracting for public street lighting

Facilitate the meterization of streetlights

Conduct demonstration projects of energy efficient street lighting in selected SSLI NAMA partner cities


SMART COMMUNITIES

In the smart communities activity; Indonesia’s Ministry of Energy and

Mineral Resources through the Directorate General of New Renewable

Energy and Energy Conservation has signed a Memorandum of

Understanding (MOU) with the New Energy and Industrial Technology

Development Organization Japan (NEDO) concerning the

Demonstration Project for Smart Communities in Industrial Parks

on July 15th, 2013.

This Demonstration Project is still in process to prepare document

implementation between electric state company PT. PLN (Persero) and

Japanese Consortium Company.


• Goal: to develop the capacity of industry in energy efficiency management

system integrated with energy optimization system approach and energy

management system standard ISO 50001. The targeted of industries include

4 (four) sub-sectors are: textile & garments, food & beverages, paper, and

chemical industries.

GOALS

APPROACH

The introduction and improvement of the capacity of the Energy

Management System

Increasing capacity in optimization system

Increasing funding capacity to support the Energy Efficiency Project in

Industry

Implementing Energy Management and Optimization System Project


BARRIERS ARE FACING IN ENCOURAGING MARKET TRANSFORMATION ON

ENERGY EFFICIENT TECHNLOGY/EQUIPMENT.

Low energy price due to energy subsidy which is not only increasing a country’s financial burden

but also deterring the promotion of energy efficiency measures.

Lack of energy saving awareness.

Limited knowledge and understanding of the importance and benefits of energy conservation

implementation to save 1 kWh is much cheaper and easier than to produce 1 kWh.

High front investment cost for energy efficient technology.

Lack of capacity in EE technology, including testing laboratories and certification bodies

Lack of smart/innovative financing mechanism for energy efficiency projects.

Lack of incentive for energy efficiency project.

Lack of coordination among institutions in formulating financing and incentive regulations.

Lack of regulation on ESCO engagement

5

• BARRIERS IN ENERGY CONSERVATION DEVELOPMENT


www.konservasienergiindonesia.info