7. DJK EBTKE Connect USAID Jumat

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15 September 2017

DIRECTORATE OF ELECTRICITY

MINISTRY OF ENERGY AND MINERAL RESOURCES

GOVERNMENT POLICY TO ACCELERATE RURAL ELECTRIFICATION

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Government Policy

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PRESIDENT JOKOWI’S NAWACITA

(NINE DREAMS)

Bringing back the government to protect the nation & bringing safety to all citizens by implementing free & active international politics

Building a clean, effective, democratic and trusting governance

Building Indonesia from the periphery by strengthening outer regions and villages in a unitary nation framework

Rejecting a weak nation by reforming the system and building a corruption-free, dignified and trusted law enforcement

Improving Indonesian’s quality of life by Smart Indonesia program with 12 year compulsory education free of charge; Healthy

Indonesia program with health service enhancement; Work

Indonesia and Prosperous Indonesia program by endorsing 9

million ha land reform

Enhancing productivity and competitiveness in the global market

Actualizing an economic independence by driving strategic economic and domestic sectors

Revolutionize the nation’s character by reorganizing the national education curriculum

Adhering “bhinneka” (unity in diversity) and strengthening

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Forestry, Peat, Agriculture 680 M Tons

Energy Sector 30 M Tons

Waste 48 M Tons

Industry and Transportation 9 M Tons

By development of NRE and the implementation of energy conservation

from all sectors

Government Commitment

to reduce GHG emission by the year of 2020

26%

(767 M Tons)

41%

Self efforts

Self efforts and

international support

Pres Reg No. 61/2011 NAP-GHG

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Ministry Of Energy and

• Regulation, policy, standard

• Provides funding for:



Low income society



Development of electricity supply infrastructure

in undeveloped regions



Development of electricity in remote and border

areas



Development of rural electricity

REGION-* : First Priority

** : Given the opportunity as integrated electricity business license organizer for not electrified areas

ELECTRICITY BUSINESS LICENSE HOLDER

MANAGEMENT OF ELECTRICITY SUPPLY IN INDONESIA

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Mineral Resources

GOVERNMENT POLICY ON

ELECTRICITY SECTOR

UTILIZATION OF PRIMARY

ENERGY SOURCES

 Good quality

 Reasonable price

NEP



Optimalization



Continuous

Determination

NRE Priority

Domestic Sources 

National Interest

AVAILABILITY

GUARANTEE

ELECTRICITY

NAWA CITA

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Directorate of Electricity Ministry Of Energy and Mineral Resources

LEGAL BASIS OF POWER SUPPLY

PLANNING

(NATIONAL ENERGY POLICY - KEN)

• An energy management policy based on the principles of justice, sustainable, and environmentally-friendly in order to create energy independence and national energy security

• Prepared by the National Energy Council

• Stipulated by the Government after the approval of Parliament

General Plan of National Energy

(RUEN)

• The central government policy on the national level energy management plan as an elaboration and the implementation plan of KEN using multi-sectoral approaches in order to achieve the target of KEN.

• Prepared by the Government and stipulated by National Energy Council

General Plan of National

Electricity (RUKN)

• A plan for developing electricity supply system prepared by the central government which includes power generation, transmission and distribution required to meet national electricity needs.

• Prepared by the Minister based on KEN.

• Stipulated by the Minister after consultation with Parliament.

Business Plan for Electricity

Provision (RUPTL)

(RUPTL PLN: MEMR Decree No.

1415 K/20/MEM/2017)

• As a basis for implementing the electricity supply business for public interest

• Prepared by electricity business who has special business areas

• Prepared by taking into account the Electricity General Plan*)

• Approved by the Minister/Governor in accordance with their authority.

GR 14/2012

jo

GR 23/2014

(Business Activities of Electricity

Provision)

General Plan of Local Electricity

(RUKD)

Prepared by the local government based on RUKN and stipulated by the Governor after consultation with Local Parliament.

General Plan of Local Energy

(RUED)

Prepared by the local government based on RUEN and stipulated under the local regulation.

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Ministry Of Energy and Mineral Resources

POLICY ON POWER GENERATION

–

ENERGY MIX

50.44

PRIMARY ENERGY MIX

(Electricity and Non Electricity) (National Energy Policy, GR No.79/2014)

ENERGY MIX OF POWER GENERATION

(Draft of RUKN 2015-2034)

30%

41%

REALIZATION 2015 _{TARGET 2026}

ENERGY MIX OF POWER GENERATION

(Draft of RUPTL PT PLN (PERSERO) 2017-2026)

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Indonesia’s Electricity Condition & Challenges

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• National electrification ratio is 92,80% in 1

st

_semester

2017.

• There are 2 provinces (NTT and Papua) having

electrification ratio lower than 70%.

• Indonesia’s

electrification ratio is still low (92,80%)

compared to other ASEAN countries.

• Target of electrification ratio: 97.35% by 2019 (RPJM)

and 100% by 2024 (RUKN).

ELECTRIFICATION RATIO IN ASEAN COUNTRIES

NATIONAL ELECTRIFICATION RATIO IN 2017 (%)

P

NATIONAL ELECTRIFICATION RATIO

> 70

97,89 JATENG_94,50

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Source:

• 2012 data: World Bank, http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC

• 2015 data: Bienvenido S. Oplas, Jr. (July 2016)

Electric Consumption per-Capita in ASEAN Countries

8,690

Singapore Malaysia Thailand Vietnam Indonesia Philippines

kW

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Electricity consumption per-capita in Indonesia

Realization Target

• Electricity consumption (kWh) per-capita of Indonesia is always increased but still

considered low

–

only 979 kWh in 1

st

_{Semester 2017.}

• Compared to other ASEAN countries, kWh per-capita of Indonesia is lower than Singapore,

Malaysia, Thailand, and Vietnam.

• Target of kWh per-capita: 1,200 kWh by 2019 (RPJM), 2,764 kWh by 2030 (RUKN), and

3,347 kWh by 2034 (RUKN).

73 0

NATIONAL ELECTRICITY CONSUMPTION PER-CAPITA

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Aceh 4

Sumut 2

Sumbar 1

Jambi 2

NTT 18 Kalbar

10

Kalsel 3

Sulsel 2

Maluku 7 Papua

2,110

Sultra 5

INDONESIA 2016 : 2.424 Villages (2,95 %)

Papua Barat 260

2.500 VILLAGES WITHOUT ELECTRICITY IN INDONESIA

• 2.424 out of 82,190 villages across Indonesia have not had electricity (still in the dark).

• Out of 2.424 villages without having electricity, 2,110 villages are located in the Province of

Papua and 260 villages in the Province of West Papua.

• The government has a target to "Light

on”

of those two provinces by 2019.

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Electrification Program Based on RUKN and

RUPTL

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CURRENT ELECTRIFICATION

PROGRAM

ELECTRIFICATION

PROGRAM

ON GRID

OFF GRID /

ISOLATED

Group

Stand Alone

PLN

PLN/APBN/DAK/

DANA DESA

APBN

Mini Grid

Grid extension

LTSHE

BUMN/BUMD/BUMDES

/PRIVATE

Generation: PLN

or Private/IPP

State equity

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NEW STRATEGIES IN RUPTL 2017-2026

1. Rescheduling COD of power plant projects due to lower demand growths

compared to the previous RUPTL.

2. Optimizing the utilisation of local primary energies, such as mine mouth, gas

wellhead and renewable energy resources in order to reduce the production

cost, increase the economic value of local primary energies as well as

improve the efficiency of power transfer.

3. Accelerating the electrification ratio, particularly for the eastern Indonesia

Region by developing mobile power plant, PV, Hybrid system, and other RE

in offgrid system.

4. Arranging reserve margin at 30% minimum up to 2019. Particularly for

outside Java-Bali, the reserve margin could be much more than 30%.

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• Least-cost analysis

• Selects supply for each settlement with lowest present value cost

• Calculates life-cycle cost of supply for each settlement using PV mini-grids

and SHS.

• Determines the maximum grid length from nearest settlement with grid

suppl such that grid e te sio is least cost

Ma

• Compares mvMax to actual grid extension required. If actual grid extension

is less than mvMax, then grid extension selected. Otherwise, the less costly

of the mini-grid or SHS is selected

• Principal inputs

• Location and population in each settlement

• Demand forecast

• Existing 20 kV network

• Costs and performance of each supply option

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Renewable Energy (RE) Development Plan

and Potential RE Projects 2017-2026

Reg. Kalimantan

Reg. Sumatera

Reg. Jawa-Bali

Reg. Sulawesi & Nusa Tenggara

Reg. Maluku & Papua

Indonesia

Note:

RE Potential resources are not included in the RUPTL project list

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ELECTRIFICATION PROGRAM 2017-2026*

1. Rekap Kebutuhan Fisik Program Listrik Perdesaan Tahun 2017 - 2026

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ACCELERATION OF INDONESIAN RURAL ELECTRIFICATION

Ministerial

Regulation No

38 Year 2016

Electrification program up to

50 MW capacity are given to :

Underdeveloped rural areas

Isolated rural areas

International border areas Small populated islands

Renewable Energy Usage

Rural Electrification Acceleration Program

utilizes renewable energy (RE)

as a

source of electricity.

Minister of Energy assigns companies that already have Power Supply Business License (IUPTL)

Determining The Business Areas :

Mi ister’s authorit to deter i e hich

business area to develop based on each

Go er or’s proposal

Governor proposes business area

Governor offers business area to companies

Governors issues Power Supply Business License (IUPTL)

Procurement Mechanism

Investment

Tariff Mechanism

Subsidy

Assignment

Nonsubsidised with agreed tariff

Nonsubsidised with national’s tariff

Based o go er or’s proposal the

auctioned to corporations that manage the business area

Regional governments can assign regional owned enterprise (BUMD) if there are no interested investor

The government calculates the required subsidy to be proposed to the

parliament (DPR)

Tariff is set by the Minister or Governor based on their respective authority

PLN based tariff, regional government

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MEMR REGULATION NO. 50/2017 ON

UTILIZATION OF RENEWABLE ENERGY

FOR POWER GENERATION

PLN Must Compile and Publish Standard Procurement Document, Standard of PJBL, and Technical Guidance Implementation of Direct Selection

Purchase of electricity required obtain the MEMR's

Approval

Solar PV, WTPP, MH/HEPP, BiomassPP,

BiogasPP, WPP, GeoPP, & TidalPP

GENERATION TYPE

ELECTRICITY PURCHASING MECHANISM

COOPERATION SCHEME

POWER PURCHASE AGREEMENT STANDAR APPROVAL PRICE

RENEWABLE

ENERGY

SOURCES

Direct Selection based on

Capacity Quota

Solar PV, WTPP

Direct Selection

MH/HEPP, BiomassPP,

BiogasPP, TidalPP

PLN is obliged to operate the plant with capacity up to 10 MW continuously (must run)

Build, Own, Operate and Transfer

(BOOT)

In accordance with the

provisions of the Laws and

Regulations

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Electricity purchase price: Solar PV, WTPP, BiomassPP, BiogasPP, TidalPP

Generation Cost in 2016

(cent USD/kWh)

MEMR Decree No. 1404 K/20/MEM/2017

Nation al Averag e

E component based on B to B

MEMR REGULATION NO. 50/2017 ON

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CLOSING

• To utilise technology in development of power plants we shall consider the Government

policy/regulation, local resources, balance between supply-demand, and the readiness

of the system as well as the cost efficiency. (Optimization).

• Centralized PV would be developed to electrify isolated areas (undeveloped areas,

border areas and outermost islands) that relatively far from existing grids. Hybrid system

(PV, other RE, and Diesel PP) would also be developed for areas that still have less than

12 hours electricity, commonly in the eastern part of Indonesia

• Smart grid system will be developed to increase penetration of intermittent RE and

increase reliability of power system. Micro grid (usually using PV) will also be developed

for the areas where distribution lines will not be developed in 2-3 years ahead.

• The reduction of HSD and MFO utilization and encourage the utilization of biofuel.

• Participation of regional-owned enterprises, private, and cooperative in developing

electricity infrastructure in remote and isolated areas where

PLN’s

services are not yet

available is widely open to be offered.

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REGULATED

THE ELECTRICITY PURCHASE AND THE

PRICE BASED ON MR MEMR 17/2014

SIGNED OF PPA

Solar PV PP, Hydro PP, Ciomass PP, Biogass PP, Waste to Energy PP and Geothermal PP

UNSIGNED OF PPA

Hydro PP, Ciomass PP, Biogass PP, and Waste to Energy PP

UNSIGNED OF PPA + ASSIGMENT OF BUMN

SIGNED OF PPA AND/OR THE PPA WHICH IS VERIFIED BY BPKP

Geothermal PP

The authorization of Geothermal PP

THE ELECTRICITY PURCHASE AND THE

PRICE BASED ON THE PPA

THE ELECTRICITY PURCHASE BASED ON

MINISTERIAL REGULATION BEFORE AND

THE PRICE BASED ON THIS MINISTERIAL

REGULATION

THE ELECTRICITY PURCHASE BASED ON MR BEFORE

AND THE PRICE BASED ON MR MEMR 172014

THE ELECTRICITY PURCHASE AND THE ELECTRCITY

PRICE BASED ON MINISTERIAL REGULATION BEFORE

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