POLICY AND NATIONAL PLANNING FOR NEW AND RENEWABLE ENERGY

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

POLICY AND NATIONAL PLANNING FOR NEW AND RENEWABLE ENERGY By : M. Sjachdirin Directorate of New, Renewable Energy And Energy Conservation Directorate General of New, Renewable Energy And Energy Conservation

Ministry of Energy and Mineral Resources

Makasar, 18 October 2010

© EBTKE KESDM - 2010




OUTLINE 1. Energy Issues 2. Transformation of the Energy Paradigm (Green Energy Initiatives) 3. Policy For Renewable Energy And Energy Conservation 4. National Emission Reduction Target


Update 27-09-2010


DEVELOPMENT OF ENERGY CONSUMTION VS SUPPLY 645 619 2000 - 2009

DEMAND (in million BOE) 439

454

451

491

509

511

513

552

Household 13 % Commercial 4% Transport 37 %

20 % 4% 32 %

Industry 52 % 44 %

Oil 43 %

60 %

13 % 22 % 5%

Coal 34 %

727

772

800

SUPPLY (in million BOE)

2000

2001

2002

859

2003

873

2004

896

2005

897

2006

Natural Gas 19 %

956

2007

1014

2008

1065

NRE 4%

2009 © EBTKE KESDM - 2010


DEVELOPMENT AND SUBSIDIES OF FOSSIL ENERGY SHARE 2000 – 2009 A. Share of Total Development (in million BOE)

727

772

800

859

873

896

897

956

1014

1065

4% 19 % Coal;

Average Increase In the last 10 years : 1.Oil 2.Coal 3.Gas

RE

34 % Gas

: 0,52 %/ year : 13,70 %/year : 1,81 %/year

43 % Oil

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

B. Development of Fossil Subsidies (in trillion Rupiah)

1. Electricity 2. Electricity (Fossil ) 3. Oil Fossil Total Subsidy

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

3,93

4,30

4,10

3,36

3,31

10,65

33,90

37,48

78,58

53,72

3.30

3.55

3.49

2.92

2.86

9.20

29.75

32.63

68.16

46.14

55.64

63.26

31.75

30.04

59.18

103.35

64.21

83.79

139.03

45.04

58.94

66.81

35.24

32.96

62.04

112.55

93.96

116.42

207.19

91.18



ENERGY CONDITION 1. Public Access to energy is still limited :

National Primary Energy Mix 2008 1014 million BOE

a. Electrification Ratio 2008 was 66% (34% of households not yet electrified); b. Development of energy infrastructure (rural/remote areas and outer islands generally have not yet access to energy;

Hydro 2,86% Geothermal 1,32%

Coal 31,84%

2. Growth in energy consumption an average of 7% per year, not yet balanced with enough energy supply; 3. Dependence on fossil energy is still high, the more limited reserves;

Oil 49,92%

4. Utilization of renewable energy and implementing energy conservation is not optimal; Gas 19,06%

Energy Elasticity = 1,63 Non Fossil Energy Share < 5%

5. Linkages with environmental issues : a. Climate change mitigation; b. Carbon trading; c. A national commitment to reducing emissions 26% by 2020; 6. Investment for development in energy sector is limited.



Development of New, Renewable Energy and Energy Conservation UU 10/1997 UU 27/2003 UU 30/2007 UU 30/2009 President’s Policy Directives in Tampak Siring (2010)

UNFCCC *)

Green Values No.8 : Energy Security No.10 : Strengthen for Green Economy

Climate Change Mitigation

Increasing Fossil Energy Consumption

Efforts to develop New, Renewable Energy and Efficient Energy Utilization

Green Energy

0

Energy Security, Public Welfare and Sustainable Development

Green Industry GREEN ENERGY CONCEPT: 1. Make efficient for energy use 2. Use Renewable Energy 3. Use clean technology for fossil or non fossil energy *) United Nations Framework Convention on Climate Change

Green Transportation



Paradigm Change In Energy Management ENERGY SUPPLY SIDE MANAGEMENT SUPPLY

Fossil Energy and Cots Regardless of (even subsidized)

ENERGY DEMAND SIDE MANAGEMENT

DEMAND

Sectoral Energy Demand That has not efficient : - Household - Transportation - Industry - Commersial

DEMAND

SUPPLY Maximized the supply and use of Renewable Energy

Efficient Sectoral Energy Demand : - Household - Transportation - Industry - Commersial

Renewable Energy as Alternatif

(DIVERSIFICATION)

Fossil energy as a factor for balancing

(CONSERVATION

Currently :

In the Future :

1. Energy needs has not been efficient, 2. Energy requirements is met by fossil (energy with whatever costs even subsidized) 3. Renewable energy is only as an alternative 4. Renewable energy sources that are not utilized is wasted the gift of God

1. 2. 3. 4.

Making efficient for energy demand Maximize the supply and use of renewable energy Fossil Energy is used as a factor for balancing Fossil energy sources are not utilized as a legacy for posterity / exported © EBTKE KESDM - 2010

Update 4-10-2010


POLICY DIRECTION NRE; 3,1%

BAU** NRE; 4,4%

Coal; 30,7%

Coal; 34,6%

Oil; 41,7%

Oil; 43,9%

PERPRES 5/2006 NRE; 17%

NRE; 25% Batubara ; 33%

Oil; 20%

Gas; 20,6%

Gas; 21,0%

VISION 25/25

Gas; 30%

Oil; 20%

Coal; 32%

Gas; 23%

5100 BOE

3,1%

34.6%

3200 BOE

25 % NRE 32 % Coal

4,4 % 30,7 %

Gas

21 %

Oil

43,9%

2010*

23 % Gas

41.7%

20 % Oil

2015

Source: *DEN, **Blueprint PEN 2006-2025

2020 2025


ENERGY DIVERSIFICATION

20,6% 1131,3 BOE

NRE Coal

3200 BOE

ENERGY CONSERVATION (37,25%)


POLICY 1. Energy conservation is done by increasing the efficient use of energy, ranging from upstream to down stream side (Demand Side). 2. Diversification of energy carried out to increase their share of new and renewable energy use (Supply Side).



NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION DEVELOPMENT STRATEGY Supply Side Strategy :  Implement mandatory for utilizing NRE  Increasing the use of NRE  Use of cleaner fuels (fuel switching)

Demand Side Strategy :  Implement commitments efficient energy utilization  Use cleaner fuels (fuel switching)  Applying the principles of energy saving  Use of clean and efficient energy technologies  Cultivate the attitude of life saving energy



NRE DEVELOPMENT AGENDA 1.

Improvement and harmonization legislation for New, Renewable Energy (NRE) and Conservation Energy (CE) 2. Improvement Master Plan for Diversification and Conservation Energy 3. Increase energy utilization efficiency 4. Geothermal development 5. Bioenergy development 6. NRE development 7. Development and application of clean energy technologies 8. Increasing local content and supporting industries NRECE 9. Increasing for Self Community Organization for rural energy 10. Increasing for Self Community Organization in the city through low carbon city (solar cell etc ) 11. Increased research and development for NRECE 12. Increased education and training for NRECE © EBTKE KESDM - 2010


COMMITMENT ON CLIMATE CHANGE President’s Commitment to the G-20 Pittsburgh and COP15 for reducing greenhouse gas emissions by 2020

Self Efforts

26%

Forestry

14%

Energy

6%

Waste

6%

41%

Self Efforts and International Support

Trough New, Renewable Energy Development and Implementation of energy conservation by all sectors © EBTKE KESDM - 2010


Sector Contribution for Achieving National Emission Mitigation Target in 2020 • Four Priority Sectors for Emissions Reduction – – – –

Energy (5-6%%); Forestry (88%); Agriculture (1%); and Waste (6%)

• Emission in the energy sector mainly due to : – Power Plant, partly because of fuel used i.e oil and coal as well as some others from the high energy intensity is almost two times higher than developed countries (Japan) for the same increased in GDP

Sector

Energy Power Sector - power supply and transmission Industry - reduced energy intensity Transport Forestry Peatland Conservation Carbon Sink Enhancement, Sustainable Forest, Forest Fire Prevention, and Reduced Deforestation Agriculture Reduced burn and slash cultivation, chemical fertilizer Waste Solid waste management Total

BAU Emission GtCO2

Target Percentage Reduction Reduction (%) GtCO2

1

0,03

3%

0,06 0,01

0,001 0,008

2% 80%

1,09

0,28

26%

0,49

0,392

80%

0,06

0,008

13%

0,25

0,048

19%

2,95

0,767

26%


14


National Commitment Energy sector : power, industry, and transportation Action Plan

National Commitment (26%)

Beyond National Commitment ( 41%)

Energy Efficiency

Energy audit on the use of electricity in buildings or industries, including cement factories

-

Renewable Energy

Develop a number small scale electricity generation from micro-hydro, solar and wind power, biomass, etc.

Develop large scale privately funded geothermal power plant and bio-fuel mostly for transportation

Fuel Switching

Develop biogas utilization and construct city gas network that are used for household.

Construct and maintain a number of mini Liquefied Petroleum Gas (LPG) terminal to facilitate a wider use of LPG as a substitute for kerosene

Clean Technology

Develop super-critical coal-based power plants and Carbon Capture Storage (CCS) facilities

Green Transportation

Develop rail-based mass rapid transport for urban areas, including double tracks and electrification of existing rail-based transport modes © EBTKE KESDM - 2010

15



POLICY AND NATIONAL PLANNING FOR NEW AND RENEWABLE ENERGY

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