Energy and Mineral Resources for the People’s Welfare By: Dr. Dadan Kusdiana Director for Bioenergy DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA Forum on Biomass Industry in Indonesia: Challenge and Opportunities Jakarta, 5th September 2013
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DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION · DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION ... Mandatory of biofuel utilization roadmap (biodiesel,
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Energy and Mineral Resources for the People’s Welfare
By:
Dr. Dadan Kusdiana Director for Bioenergy
DIRECTORATE OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION
MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA
Forum on Biomass Industry in Indonesia: Challenge and Opportunities
Jakarta, 5th September 2013
Energy and Mineral Resources for the People’s Welfare
I. ENERGY CONDITION
II. NATIONAL ENERGY POLICIES
III. POTENTIAL OF BIOENERGY DEVELOPMENT
IV. BIOENERGY TARGET AND INCENTIVES
V. BIOENERGY TARGET IMPLEMENTATION
VI. STEP FORWARD
VII. CONCLUDING REMARKS
Energy and Mineral Resources for the People’s Welfare
Energy Mix 2011
Share of Non Fossil Energy ≈ 5%
Average growth rate of energy consumption is 7% per year
High dependence on fossil energy while the reserves are more limited
Less of energy infrastructure development, particularly in rural / remote areas and outer islands
Utilization of renewable energy and implementation of energy conservation is not optimal
Public access to modern energy is still limited; electrification ratio (2011) is 72.95%
Linkage to environmental issues about mitigation of climate change.
NRE 5%
Coal 24%
Gas 24%
Oil 47%
Energy and Mineral Resources for the People’s Welfare
ENERGY CONSERVATION: to improve efficiency in energy utilization in sectors of
Industrial, transportation, household and commercial (Demand Side).
► Huge implementation opportunity due to Indonesia is a wasteful energy consumer,
measured from its energy intensity.
► Conservation cost is cheaper than cost of increasing supply.
► Implementing conservation is faster than increasing supply.
ENERGY DIVERSIFICATION: to increase new and renewable energy (NRE)
utilization (Supply Side).
► Huge potential.
► Implementable faster than fossil energy.
► No need of massive investment.
II. INDONESIA’S ENERGY POLICY (LAW NO. 30/2007 CONCERNING ENERGY)
Energy and Mineral Resources for the People’s Welfare
Energy and Mineral Resources for the People’s Welfare
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives ...(1/4)
1. BIOFUEL USAGE MANDATORY ROADMAP (As stated on Draft Revision of the Ministry of Energy and Mineral Resources Regulation No. 25 Year 2013)
BIODIESEL (Minimum)
Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025
Transportation, PSO 10% 10% 10% 20% 20% 25%
Transportation,
Non PSO
3% 10% 10% 20% 20% 25%
Industry and commercial 5% 10% 10% 20% 20% 25%
Electricity Generation 7,5% 20% 25% 30% 30% 30%
BIOETHANOL (Minimum)
Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025
Transportation, PSO 0,5% 1% 2% 5% 20%
Transportation,
Non PSO
1% 1% 2% 5% 10% 20%
Industry 1% 2%
5% 10% 20%
Energy and Mineral Resources for the People’s Welfare
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives ...(2/4)
2. BIOFUEL USAGE MANDATORY ROADMAP (As stated on Draft Revision of the Ministry of Energy and Mineral Resources Regulation No. 25 Year 2013)
PURE PLANT OIL (Minimum)
Sector Sept 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2020 Jan 2025
Industry and
Transportation (low
and medium speed
engine)
Industry 1% 5% 10% 20% 20% 20%
MarineTransportation 5% 10% 20% 20% 20%
Air Transportation 2% 3% 5%
Electricity Generation 1% 6% 15% 20% 20% 20%
Energy and Mineral Resources for the People’s Welfare
IV. TARGET AND INCENTIVES : Bioenergy Roadmap and Incentives ...(3/4)
3. FEED-IN TARIFF FOR BIOENERGY BASED POWER PLANT (As stated on the Ministry of Energy and Mineral Resources 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 Non Municipal Solid Waste
3. Municipal Solid Waste (MSW) until 10 MW Rp. 1.450,- / kWh Zero waste *)
4. Municipal Solid Waste (MSW) until 10 MW Rp. 1.250,- / kWh Sanitary Landfill *)
Low Voltage
1 Biomass until 10 MW Rp. 1.325,- / kWh X F
2 Biogas until 10 MW Rp. 1.325,- / kWh X F Non Municipal Solid Waste
3 Municipal Solid Waste (MSW) until 10 MW Rp. 1.798,- / kWh Zero waste *)
4 Municipal Solid Waste (MSW) until 10 MW Rp. 1.598,- / kWh Sanitary Landfill *)
F is an incentive factor based on the region where the power plant is installed, as follows:
• Jawa, Bali, and Sumatera region : F = 1
• Kalimantan, Sulawesi , NTB and NTT region : F = 1,2
• Maluku and Papua region : F = 1,3
Energy and Mineral Resources for the People’s Welfare
4. BIOFUEL USAGE MANDATORY ROADMAP
a. Priority for local Potential NRE (no bidding)
b. The Obligation of NRE electricity puchasing by PT. PLN (Persero)
c. Feed-in-Tariff for NRE electricity
d. Income Tax Incentive for RE Invesment
e. Incentive on permit of biomass facility
IV. TARGET AND INCENTIVES: Bioenergy Roadmap and Incentives ...(4/4)
Energy and Mineral Resources for the People’s Welfare
V. TARGET IMPLEMENTATION: Bioenergy Based Power Plant ...(2/3)
1. Implementation of bioenergy based power plant (from biogas, biomass, and municipal solid waste)
has increased significantly since the enactment of the new feed-in-tariff;
2. Current installed on-grid capacity of bioenergy based power plant in 2012 was 75.5 MW (in 2012, an
increase capacity was 16.5 MW).
No Company COD Contract Location Connection region Biomass Type
Conracted
Capacity
(MW)
1 PT Riau Prima Energy 2001 Excess power Riau PLN Wilayah Riau palm waste 5