Dadan Kusdiana - Indonesia Renewable Energy Policies and Regulations

Kementerian Energi dan Sumber Daya Mineral Republik Indonesia Direktorat Jenderal Energi Baru Terbarukan dan Konservasi
Energi
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES
INDONESIA: RENEWABLE ENERGY POLICIES AND REGULATION, CHALLENGES IN INCENTIVIZING RE DEVELOPMENT AND RURAL ELECTRIFICATION
by : DR. DADAN KUSDIANA
3rd Asia Pacific Dialogue on Clean Energy Governance, Policy and Regulation
Manila, 4 6 Juni 2012

EBTKE KESDM - 2011
Kementerian Energi dan Sumber Daya Mineral Republik Indonesia Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi
OUTLINE
I. CURRENT STATUS AND UPDATES ON NATIONAL ENERGY SITUATION II. POLICIES ON SUSTAINABLE RENEWABLE ENERGY FOR RURAL AND REMOTE AREAS III. RENEWABLE ENERGY POLICIES ON ON-GRID IMPLEMENTATION IV. BIOENERGY PROGRAMS V. CONCLUSION
EBTKE KESDM - 2011
INDONESIA CONDITION OF ENERGY (2011)

National Energy Mix Total (2011) 1176 million BOE
NRE 5.03%
1. High dependence on fossil energy;

2. The utilization of renewable energy is still low; 3. The average of growth rate of energy consumption is 7% per year ;
4. Public access to energy (modern) is still limited:

Coal 23.91%
Natural Gas 24.29%
a. Electrification ratio of year 2011 is 72.95 % (27.05 % of households not yet electrified); b. Less of development of energy infrastructure particularly in rural / remote areas and outer islands. 5. Linkage to environmental issues: a. Mitigation of climate change; b. Carbon trading; c. National commitment to reducing emissions 26% by 2020.
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EBTKE KESDM - 2011
Crude Oil 46.77%
Elasticity of Energy = 1,65 Share of Non Fossil Energy 5%
National Electrification Ratio (Term I/2011)

Category :
NAD 90.85%
Sumut 79.05% Riau 58.66%
Kepri 44.45% Kalteng 57.07% Kalbar 58.34% Sumsel 56.39% Babel 68.73% Jakarta 100% Katim 65.25% Gorontalo 46.79% Sulut 65.84% Malut 63.84%
> 60 % 41 - 60 % 20 - 40 %
Papua Barat 41.87% Sulbar 60.85%
Sumbar 71.13% Jambi 75.71% Bengkulu 61.11% Lampung 61.25%
Sulteng 56.04% Sultra 47.11%
Kalsel 70.53%
Bali 70.87%
Sulsel 65.93%
Maluku 72.62%
Papua 31.61%
Banten 67.29% Jabar 69.04%
Jateng 70.42%
DIY 75.70%
NTB Jatim 31.20% 65.54%
NTT 29.10%
Reliazation (Year) 2005 2006 Electrification Ratio 62% 2007 2008 2009 2010 2011
Plan (Year) 2012 2013 2014 80.0%

EBTKE KESDM - 2011
63% 64.3% 65.1% 65.8% 67.2% 70.4% 73.6% 76.8%
RURAL ELECTRIFICATION
Grid extension (on-grid)
Cost sharing with consumer

State-Own Company & GOVT Free of charge Central and Local Government State-own company
Rural Elecrification Program
Renewable energy implementation for remote areas (offgrid)
centralised
distributed
EBTKE KESDM - 2011 EnergiHij@u
(5)
PROGRAM ON ENERGY SELF-SUFFICIENT VILLAGE (ESSV)

ESSV is a village having capability to produce a part/whole their energy demand for consumptive and productive use.
CRITERIA
Utilization of locally available energy (renewable energy) Creation of productive activities Job creation
PROGRAM:
Utilization of locally available energy resources Development of productive activities Development of applicable technologies Development of institution and people participatory
EBTKE KESDM - 2011 EnergiHij@u
(6)
INTEGRATED SMALL SCALE BIOETHANOL PLANT

Additional fertilizer CASAVA PLANTATION WITH HIGH PRODUCTIVITY CASSAVA 5-100 HA Cassava Leaf Liquid fertilizer, Organic fertilizer BIOETHANO L PLANT Limbah padat waste LAGOON COW MEAT 25 500 heads Additional feed Ethanol 90- 95% 200 4.000 L/day
MEAT 25-500 head/4 months
BIOGAS
EBTKE KESDM - 2011
SPECIAL ALLOCATION FUND ON RENEWABLE ENERGY

Since 2011, in order to increase the accessibility of modern and clean energy in rural and remote areas, the Government allocate special budget on renewable energy development, namely Dana Alokasi Khusus (DAK); Through this policy, it is expected that the society can improve their welfare, since the energy access is designed not only to fulfill the demand on daily needs but also the demand from the productive activities; Government and society at local level is stimulated to be more involved on renewable energy development. Local governments have responsibilities to manage the budget, including planning, implementing, evaluating, monitoring and reporting; The scope of projects financed by DAK: - microhydro; - solar photovoltaic; - biogas.
EBTKE KESDM - 2011
PROGRAM BIOGAS RUMAH (PROGRAM BIRU)
This programme is implemented under bilateral cooperation between the Government of Indonesia (GOI) and the Netherlands; The program is funded by Netherlands Government, facilitated by the Ministry of Energy and Mineral Resources GOI, and implemented by HIVOS, as NGO from Netherlands. The programme period is from May 2009 until December 2012; The program has a long term goal to develop biogas market in Indonesia and target to build minimum 8,000 good quality biogas unit at the end of 2012; Until 18 May 2012, total biogas unit built is 5,142 unit distributed in 8 (eight) provinces in Indonesia.
EBTKE KESDM - 2011
IMPROVED COOKSTOVE PROGRAMME

The Program on Cook Stove has been initiated since late of 1980s in collaboration with reserach institutes, universities and local organizations. In 1990, under collaboration with Yayasan Dian Desa, the program on Improved Cook Stove, namely Program Tungku Sehat dan Hemat Energi (TSHE) was implemented. The sources of fund are from the National Budget and international donor (through ARECOP); However, ICS is still unsuccessfully penetrate the market; while currently various designs on improved cook stove have been developed by some research institutions; Currently, - under collaboration between the GOI and World Bank, Indonesia is now implementing the Initiative Clean Cook Stove Program. The program is still in initial phase: Indonesia Stocktaking Review/Sector Mapping: Mapping of household cooking demand, Mapping of stove suppliers and their issues and options, Mapping of key institutional players and review relevant policies and programs.
EBTKE KESDM - 2011
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INCENTIVES FOR COMMERCIAL ON-GRID IMPLEMENTATION 1. 2. 3. 4. 5. Giving priority for locally available renewable energy resources (no need for tender) Mandatory for electric utility to purchase electricity generated from renewable energy Regulated Purchasing Price (Feed-in Tariff) Tax investment credit for electricity generated from renewable energy (currently applies for geothermal) Reduced or exempted custom tax for renewable energy technologies Simple permit procedure Support from the government for selected FS
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EBTKE KESDM - 2011
6. 7.
ELECTRICITY PRICE (FEED-IN TARIFF) BASED ON BIOMASS, BIOGAS, AND MUNICIPAL SOLID WASTE *) (NEW FEED-IN-TARIFF: MINISTRY ENERGY AND MINERAL RESOURCES NO. 4/2012)
No. Energy Capacity Selling Price to PLN Medium Voltage 1. 2. 3. 4. Biomassa Biogas Municipal Solid Waste Municipal Solid Waste up to 10 MW up to 10 MW up to 10 MW up to 10 MW Rp 975,- / kWh X F Rp 975,- / kWh X F Rp 1,050,- / kWh Rp 850,- / kWh Non municipal waste Zero waste *) Landfill *)
Low Voltage 1 2 3 4 Biomassa Biogas Municipal Solid Waste Municipal Solid Waste up to 10 MW up to 10 MW up to 10 MW up to 10 MW Rp 1,325,- / kWh X F Rp 1,325,- / kWh X F Rp 1,398,- / kWh Rp 1,198,- / kWh Non municipal waste Zero waste *) Landfill *)
F as an incentive factor based on the region where the power plant installed, as follows: Jawa, Bali, and Sumatera region
Kalimantan, Sulawesi , NTB and NTT region Maluku and Papua region
:F=1
: F = 1,2 : F = 1,3
Note : *) Based on Act No. 18 Year 2008 concerning to Waste Management
EBTKE KESDM - 2011
CONCLUSION
Indonesia has priorities to provide and utilize renewable energy resources to increase access on modern energy for rural society; Modern energy is entry point to increase the welfare of rural society, therefore the energy provision should be integrated designed with the economic productive activities; Some programs on renewable energy development has been implemented through different approaches: non-commercial, semicommercial, and commercial; New policy on feed-in-tariff is expected to increase the electrification ratio, especially in rural areas with more participation from private sectors; Some incentives provide for renewable energy development: tax exemption, simplification on license procedure, and investment tax incentives.
EBTKE KESDM - 2011
13
Thank You
Energy for the Welfare of Society

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL REPUBLIK INDONESIA
DIREKTORAT JENDERAL ENERGI BARU, TERBARUKAN, DAN KONSERVASI ENERGI Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950; Telp/Faks : 021-5250575
www.ebtke.esdm.go.id
EBTKE KESDM - 2011
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Dadan Kusdiana - Indonesia Renewable Energy Policies and Regulations

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Kementerian Energi dan Sumber Daya Mineral Republik Indonesia Direktorat Jenderal Energi Baru Terbarukan dan Konservasi

Manila, 4 6 Juni 2012

EBTKE KESDM - 2011

INDONESIA CONDITION OF ENERGY (2011)

1. High dependence on fossil energy;

4. Public access to energy (modern) is still limited:

Natural Gas 24.29%

Crude Oil 46.77%

Elasticity of Energy = 1,65 Share of Non Fossil Energy 5%

National Electrification Ratio (Term I/2011)

Sumut 79.05% Riau 58.66%

Papua Barat 41.87% Sulbar 60.85%

Sumbar 71.13% Jambi 75.71% Bengkulu 61.11% Lampung 61.25%

Sulteng 56.04% Sultra 47.11%

Banten 67.29% Jabar 69.04%

NTB Jatim 31.20% 65.54%

Plan (Year) 2012 2013 2014 80.0%

63% 64.3% 65.1% 65.8% 67.2% 70.4% 73.6% 76.8%

Cost sharing with consumer

Rural Elecrification Program

Renewable energy implementation for remote areas (offgrid)

EBTKE KESDM - 2011 EnergiHij@u

PROGRAM ON ENERGY SELF-SUFFICIENT VILLAGE (ESSV)

EBTKE KESDM - 2011 EnergiHij@u

INTEGRATED SMALL SCALE BIOETHANOL PLANT

MEAT 25-500 head/4 months

EBTKE KESDM - 2011

SPECIAL ALLOCATION FUND ON RENEWABLE ENERGY

PROGRAM BIOGAS RUMAH (PROGRAM BIRU)

EBTKE KESDM - 2011

IMPROVED COOKSTOVE PROGRAMME

Note : *) Based on Act No. 18 Year 2008 concerning to Waste Management

EBTKE KESDM - 2011

Energy for the Welfare of Society

EBTKE KESDM - 2011

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