LESSONS LEARNED & BEST PRACTICE OF TNAs IN INDONESIA NATIONAL PERSPECTIVE Development and Transfer of Technologies WG Ministry of Environment – Agency.

LESSONS LEARNED & BEST PRACTICE OF TNAs IN

INDONESIA NATIONAL PERSPECTIVE

Development and Transfer of Technologies WGMinistry of Environment – Agency for the Assessment and Application of

Technology

Workshop on sharing best practices with conducting TNAsBangkok, Thailand, 27-29 June 2007

Sumatera470,000 km2 Papua

420,000 km2

Sulawasi190,000 km2

Kalimantan540,000 km2

Java130,000 km2

BACKGROUND

• Indonesia consists of more than 13,000 islands with 5 big islands.

• Indonesia will be impacted seriously by climate change, a number of islands will be impacted if sea level rise as UNFCCC prediction. Important to involve in the activities for reducing GHG emission to reduce climate change impacts.

• Unfortunately, fossil fuel energy will remain dominant in the future national energy mix. The goal of national energy security and environmental protection must be reconciled. We need to drive the national technology system toward low carbon and carbon free energy technologies.

Indonesian Working Groups on Climate Change

Mitigation Post Kyoto ForestryAdaption EnergyFinancial Mech. Transfer of Technology

Waste Ocean ForestryAgricultureTransportation IndustryEnergy:

Working Group on Climate Change Activities: to undertake qualitative policies and measures that lead to the our response to Climate change, i.e. to stabilize concentration of GHGs at the safe level.

Working Group of Transfer of Technology Activities: to further derivation and enrichment the previous project and to prioritize technology needs, and capacity building to assess technology needs, modalities to acquire and absorb them.

EXISTING INDONESIAN WORKING GROUP ON CLIMATE CHANGE

INSTITUTIONS IN TECHNOLOGY TRANSFER WORKING GROUP

• Ministry of Environments• Ministry of Research and Technology• Agency for the Assessment and Application

of Technology (BPPT)• Governments Departments: Energy &

Mineral Resources, Forestry, Agriculture, etc.

• Meteorology and Geophysical Agency• Indonesia State Electricity Company• Private Sectors• Universities• NGOs

EXISTING INDONESIA LEGAL AND REGULATORY

FRAMEWORK ON TT

• Presidential Decree No.5, 2006 on energy mix by the year 2025

• Presidential Decree No.10, 2005 on energy efficiency

• Plan to plant 2 billion trees in 10 years• Government Target:

– Share of at least 17 % renewable energy.– Emission reduction in industry, transportation,

Agriculture, waste, energy generation, forestry, and other sectors.

Bahan Bakar Nabati(Biofuel) 5%

Panas Bumi 5%

Biomasa, Nuklir, Air,Surya, Angin 5%

Batubara yangDicairkan (CoalLiquefaction) 2%

Batubara 33%

Minyak Bumi 20%

Others 17%

Gas Bumi 30%

PRIMARY ENERGY MIX 2005

TARGET ENERGI MIX NASIONAL 2025

(PERPRES NO. 5/2006)

• Enhancing energy security & mitigating CO2 emissions: to secure strategic reserve, to improve efficiency in energy production & use, to increase reliance on non fossil fuels and to sustain the domestic supply of oil/gas (slower growth in fossil fuel-demand in oil/gas imports and in emissions).

• Proposed energy technology use, diffusion and deployment, increasing clean energy technologies.

• Energy infrastructures and its time frame.• Etc.

THE NATIONAL ENERGY ISSUES

What is the Sustainable Road Map?

NATIONAL ENERGY TRAJECTORY

Minyak Bumi

51.66%

Batubara15.34%

Gas Bumi28.57%

Tenaga Air3.11%

Panas Bumi1.32%

≤

≥

≥

≥

≥

≥

≥

≥

t2?

t1?

t3?

t25EBT +

LINKAGE BETWEEN ISSUED REGULATIONS IN POWER SECTORLEGAL & REGULATORY FRAMEWORK FOR INDONESIA POWER SECTOR, INFRASTRUCTURE DEVELOPMENT & IMPLEMENTATION

DESCRIPTION PT. PLN (PERSERO)INFRASTRUCTURE

DEVELOPMENT LEGAL & REGULATORY FRAMEWORK

INDONESIA POWER SECTOR LEGAL & REGULATORY FRAMEWORK

POLICY, STRATEGY, NATIONAL

TARGET, AND NATIONAL PLAN

IMPLEMENTING RULES,

PROCEDURES AND PLAN

IMPLEMEN-TATION

COOPERATION BETWEEN

GOVERNMENT AND ENTERPRISES FOR DEVELOPMENT OF INFRASTRUCTURE

(PRESIDENTIAL REGULATION NO67/

2005)<P>

RISK MANAGEMENT

GUIDELINES FOR INFRASTRUCTURE

DEVELOPMENT(MINISTRY OF

FINANCE REGULATION

NO.38/PMK.01/2006)<Q>

ELECTRICITY LAW(GOVERNMENT OF INDONESIA LAW NO. 15 / 1985)

<A>

MODIFICATION OF GOVERNMENT REGULATION

NO 10/1989 SUBJECT, SUPPLY AND UTILIZATION OF

ELECTRICITY(GOVERNMENT REGULATION

NO.3/2005)<B>

LEGALIZATION OF MODIFIED PLN ELECTRICITY

SUPPLY GENERAL PLAN/ RUPTL 2006-2015

(MEMR DECREE NO. 2923K/30/MEM/2006)

<I>

NATIONAL ENERGY POLICY(PRESIDENTIAL REGULATION NO.5/2006)

<D>

COAL FIRED POWER PLANT

CRASH PROGRAM

RENEWABLE ENERGY MEDIUM SCALE

CRITICAL AREAPOWER PURCHASE AND TRANSMISSION RENTAL

SUPPLY AND UTILIZATION OF BIOFUEL AS ALTERNATIVE FUEL

(PRESIDENTIAL INSTRUCTION NO.1/2006)<G>

LIQUEFIED COAL’S SUPPLY AND ITS UTILIZATION

(PRESIDENTIAL INSTRUCTION NO.2/2006)<H>

ASSIGNMENT TO PLN FOR ACCELERATION OF COAL FIRED POWER PLANTS DEVELOPMENT

(PRESIDENTIAL REGULATION NO. 71/2006)<E>

ESTABLISHMENT OF COORDINATION TEAM FOR POWER PLANTS DEVELOPMENT.

(PRESIDENTIAL REGULATION NO,72/2006)<F>

MEDIUM SCALE OF RENEWABLE ENERGY

POWER PLANT(MEMR REGULATION

NO. 002/2006)<O>

PROCEDURE OF POWER PURCHASE AND/OR

TRANSMISSION RENTAL ELECTRICITY SUPPLY

FOR PUBLIC(MEMR REGULATION

NO.001/2006)<J>

GUIDELINES OF THE ISSUANCE OF

ELECTRICITY BUSINESS LICENSE FOR

TRANSMISSION TRANSPROVINCE OR

CONNECTED TO NATIONAL GRID

(MEMR REGULATION NO. 010/2005)

<L>

LIST OF POWER SYSTEMS (AREAS)

IN CRITICAL CONDITION

(EMERGENCY CONDITION)

(MEMR REGULATION NO. 206-12/40/600.2/

2006)<M>

LIST OF POWER SYSTEMS (AREAS)

IN CRITICAL CONDITION

(EMERGENCY CONDITION)

(MEMR REGULATION NO. 482-12/40/600.2/

2006)<N>

NATIONAL ELECTRICITY

GENERAL PLAN 2006-2026

( MEMR DECREE NO. 2270K/31/MEM/2006)

<C>

RENEWABLE ENERGY

· SUPPLY AND DEMAND BALANCE

· INVESTMENT REQUIRMENT

· PROJECT LIST

INFLUENCED BY

ARTICLE 5POINT 1

ARTICLE 2POINT 2

DERIVATION

ARTICLE 5POINT 1&2

POJECT DEVELOPMENT AND IMPLEMENTATION

TO OBTAIN GOVERNMENT SUPPORT/ GUARANTEE

CONSIDERING

IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN

INDONESIA(Existing Indonesian TNA submited to UNFCCC on 2001)

The immediate objective:– to enable Indonesia to identify national technology needs, – capacity building to asses international technology availability, and – modalities to acquire and absorb the appropriate technology.

Sectors in Existing Indonesian TNA• Energy Sector

– Energy Industry – Industry Sector – Household and Commercial Sector – Transportation sector

• Non-Energy Sector – Agriculture and Livestock – Forestry

IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN

INDONESIA(Existing Indonesian TNA submited to UNFCCC on

2001)MODALITIES OF TECHNOLOGY TRANSFER• Institutional Establishment • Regulation Development

• Procedure of Transferring Technology • The Role of Decentralization • System & Procedure Establishment

• Financial Arrangement – Foreign Direct Investment – Official Development Assistance – The Global Environmental Facility – Clean Development Mechanism – Multilateral & Bilateral Agencies– Regional Development Banks– Etc.

IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN

INDONESIA(Existing Indonesian TNA submited to UNFCCC on 2001)

Criteria for prioritizing technology needs – Utilization of local resources– Rational utilization of resources– Socio-economic important– GHG reduction potential– Investment cost– Social acceptance– Minimum impact on environment

Methods for prioritization of technology needs– Cost–benefit and risk–benefit analyses

IDENTIFICATION OF LESS GHG EMISSION TECHNOLOGIES IN

INDONESIA(Existing Indonesian TNA submited to UNFCCC on 2001)

• Indonesia listed barriers and measures sector-wise. Types of barriers to technology transfer identified are:– Economic / market– Information/awareness– Policy– Regulatory– Institutional– Human– Technical– Infrastructure

• Indonesia expressed concern about the high investment costs of selected mitigation options, which could translate into higher product prices and loss of competitiveness in the case of the energy sector. However, it identified barriers only in the transport, forestry and agriculture sectors.

TECHNOLOGY TRANSFER WORKING GROUP ACTIVITIES

Approach / Methodology: • Technology transfer is intended to reduce the emission

intensity of the economic activities, which is determined by the emission generated per unit of economy output.

• Derivation & enrichment of the existing TNA which also refer to Conducting TNA for Climate Change , UNDP 2004.

• Further cost/benefit, risk/benefit and multi-criteria analysis particularly in energy sector.

• Prioritizing the urgent Indonesian Technology Needs (mapping)

Prioritizing of Indonesian TNA based on the Existing TNA / Identification

EXPECTED SCHEDULE

Program Choice of Technology

TNA Revision Technology Priority

week(starting June 07)

1 2 3 4 July

5 6 7 8 9 10 11 12 Aug Sep

13 14 15 16 Oct

WGTT R R R R R P D R U R

SWG Energy R P P P D

SWG Transportation R P P P D

SWG Industry R P P P D

SWG Forestry R P P P D

SWG Agriculture R P P P D

SWG Ocean R P P P D

Output SWG TaskDistribution

TNA draft per sector

WGTT Input to COP13

IndonesianPositionCOP13

R= Meeting, P=Process, D= Draft, U =Proposal SWG sub working group

EXAMPLE OF TECHNOLOGY NEEDS IN INDONESIA

• High Efficiency Power Generation: Clean Coal Technology, CHP Technology, etc.

• Energy Efficiency in Industrial sector (cement, iron & steel, pulp & paper, fertilizer, textile, mining, lime calcination, chemical, etc.)

• Energy Efficiency in Industrial Equipments (Industrial process, electrical motor, boiler, compressor, furnace, Refrigeration, heater, room conditioning, cooling tower, electrical system, combustion, pump, lighting, steam distribution, waste heat recovery, etc.

• Energy consumption efficiency in transportation including using gas for vehicles including improvement of public transportation

• Carbon Capture Sequestration (CCS)• Cleaner Production Technology for Industry• Renewable Energy: Biomass, Wind, Solar, Ocean, Geothermal, Hydro

electric, etc.• Climate modification technology• Climate monitoring & reporting system

PRIORITIZING PLAN OF TECHNOLOGY NEEDS

• Technology Reducing CO2 Emission in Several Sectors: Energy, Industry, Transportation, Forestry, Agriculture, Ocean and Waste.

• Calculating CO2 Balance in several Sectors: forestry, agriculture, wetland, ocean, river, energy, transportation, industry and public utility (domestic waste landfill).

• Technology for Better Climate System Monitoring & Reporting for Indonesia.

• Technology for Identify the Impact of Climate Change Such as: Prediction of Temperature and Sea Level Rise and Its Impact for Indonesia.

• New issue: Technology of Using Ocean for CO2 Sink (80% of Indonesia Area is Ocean).

EXAMPLE OF TECHNOLOGY NEEDS IN INDONESIA

(continue..)• Avoiding forest burning, avoiding deforestation, forest conservation

and reforestation, etc.• Composting of agricultural waste, manure management, etc.• Landfill management to avoid methane release• Ocean Sequestration • Technology for water resources management• Industrial waste water treatment• Industrial solid waste treatment (recovery, composting of palm free

fruit bunch.• Etc

Other technology has already mentioned in Indonesian TNA 2001 (Identification of Less GHG Technology)

ENERGY BALANCE AND CARBON (C) EMISSION OF CHP PLANTS AND SEPARATE POWER AND HEAT

(Existing Indonesian TNA submited to UNFCCC on 2001)

BASE CASE INDUSTRY INVESTMENT COST, OPERATIONAL AND MAINTENANCE COST, LIFETIME, EFFICIENCY

(Existing Indonesian TNA submited to UNFCCC on 2001)

MITIGATION OPTIONS, TOTAL SYSTEM COST AND TOTAL CO2 RELEASED IN INDONESIA

(Existing Indonesian TNA submited to UNFCCC on 2001)

BARRIERS AND THE INTENSITY

Barriers IntensityEconomic/market HighInformation/awareness LowPolicy LowRegulatory LowInstitutional LowHuman MediumTechnical HighInfrastructure High

CONCLUSION

• Technology Mapping as derivation and enrichment from the previous Indonesian TNA of 2001 is the main goal of the Indonesian WGTT.

• Further the result will be used as an input to other sectors nationally and regionally. The prioritized technology is incorporated in the climate change national action plan.