POLICY AND NATIONAL PLANNING FOR NEW AND RENEWABLE ENERGY

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Kementerian Energi dan Sumber Daya Mineral

Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi

© EBTKE KESDM - 2010

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

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

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OUTLINE

1. Energy Issues

2. Transformation of the Energy Paradigm

(Green Energy Initiatives)

3. Policy For Renewable Energy And

Energy Conservation

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727

772 ₈₀₀

859 ₈₇₃

₈₉₆

₈₉₇

956 1014

1065

NRE

4 %

Coal

34 %

Natural Gas

19 %

Oil

43 %

DEVELOPMENT OF ENERGY CONSUMTION VS SUPPLY

2000 - 2009

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

439

454

451

491

509

511

513

552

619

645 Industry

52 %

Transport

37 %

Commercial

4 %

Household

13 %

44 %

DEMAND

(in million BOE)

SUPPLY

(in million BOE)

32 %

4 %

20 %

60 %

13 %

22 %

5 %

Update 27-09-2010

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DEVELOPMENT AND SUBSIDIES OF FOSSIL ENERGY SHARE 2000 – 2009

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1. Electricity

_3,93

_4,30

_4,10

_3,36

_3,31

_10,65

_33,90

_37,48

_78,58

_53,72

2. Electricity (Fossil )

_3.30

_3.55

_3.49

_2.92

_2.86

_9.20

_29.75

_32.63

_68.16

_46.14

3. Oil

_55.64

_63.26

_31.75

_30.04

_59.18

_103.35

_64.21

_83.79

_139.03

_45.04

Fossil Total Subsidy

_58.94

_66.81

_35.24

_32.96

_62.04

_112.55

_93.96

_116.42

_207.19

_91.18

43 %

34 %

19 %

4 %

Average Increase

In the last 10 years :

1.Oil

: 0,52 %/ year

2.Coal

: 13,70 %/year

3.Gas

: 1,81 %/year

A. Share of Total Development (in million BOE)

B. Development of Fossil Subsidies (in trillion Rupiah)

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

727

772

800

859

873

896

897

956 1014

1065

RE

Gas

Coal;

Oil

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ENERGY CONDITION

National Primary

Energy Mix 2008

1014 million BOE

Energy Elasticity = 1,63

Non Fossil Energy Share < 5%

Gas

19,06%

Coal

31,84%

Oil

49,92%

Geothermal

1,32%

Hydro

2,86%

1. Public Access to energy is still limited :

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;

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;

4. Utilization of renewable energy and implementing

energy conservation is not optimal;

5. Linkages with environmental issues :

a. Climate change mitigation;

b. Carbon trading;

c. A national commitment to reducing emissions 26%

by 2020;

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Development of New, Renewable Energy and Energy

Conservation

President’s Policy Directives

in

Tampak Siring (2010)

Increasing Fossil

Energy Consumption

Climate Change

Mitigation

No.8 : Energy Security

No.10 : Strengthen for Green

Economy

UNFCCC

*)

GREEN ENERGY CONCEPT:

1. Make efficient for energy use

2. Use Renewable Energy

3. Use clean technology for fossil or non fossil energy

UU 10/1997

UU 27/2003

UU 30/2007

UU 30/2009

Green Values

*) United Nations Framework Convention on Climate Change

0 Green Energy

Green Industry

Green Transportation

Energy Security, Public

Welfare and Sustainable

Development

Efforts to develop New,

Renewable Energy and

Efficient Energy Utilization

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Paradigm Change In Energy Management

ENERGY SUPPLY SIDE MANAGEMENT

ENERGY DEMAND SIDE MANAGEMENT

SUPPLY

DEMAND

SUPPLY

Maximized the supply and use of

Renewable Energy

Fossil energy as a factor for

balancing

Efficient Sectoral Energy

Demand :

- Household

- Transportation

- Industry

- Commersial

Fossil Energy and Cots

Regardless of

(even subsidized)

Renewable Energy as

Alternatif

Sectoral Energy

Demand

That has not efficient

:

- Household

- Transportation

- Industry

- Commersial

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. Making efficient for energy demand

2. Maximize the supply and use of renewable energy

3. Fossil Energy is used as a factor for balancing

4. Fossil energy sources are not utilized as a legacy for posterity /

exported

(CONSERVATION

(DIVERSIFICATION)

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© EBTKE KESDM - 2010 Batubara ; 33% Gas; 30% Oil; 20% NRE; 17%

Coal;

34,6%

Gas;

20,6%

Oil;

41,7%

NRE; 3,1%

Coal; 32% Gas; 23% Oil; 20%

NRE;

25%

Coal; 30,7% Gas; 21,0% Oil; 43,9%

NRE;

4,4%

POLICY DIRECTION

NRE

Gas

Coal

Oil

21 %

30,7 %

43,9%

4,4 %

NRE

Gas

Coal

Oil

2010*

2015

2020

2025

ENERGY

CONSERVATION

(37,25%)

EN

ER

G

Y

D

IV

ER

SIFIC

A

TION

BAU**

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

PERPRES 5/2006

VISION 25/25

25 %

32 %

1131,3 BOE

20 %

23 %

41.7%

20,6%

34.6%

3,1%

5100 BOE 3200 BOE 3200 BOE

Update 4-10-2010

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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).

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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

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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

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Forestry

14%

Energy

6%

Waste

6%

Trough New,

Renewable Energy

Development and

Implementation of

energy conservation by

all sectors

President’s Commitment to the G-20 Pittsburgh and COP15

for reducing greenhouse gas emissions by 2020

26%

41%

Self Efforts

Self Efforts and

International

Support

COMMITMENT ON CLIMATE CHANGE

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14 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

BAU

Emission

GtCO2

Target

Reduction

GtCO2

Percentage

Reduction (%)

Energy

Power Sector - power supply

and transmission

1 0,03

3%

Industry - reduced energy

intensity

0,06

0,001

2%

Transport

0,01

0,008

80%

Forestry

Peatland Conservation

1,09

0,28

26%

Carbon Sink Enhancement,

Sustainable Forest, Forest Fire

Prevention, and Reduced

Deforestation

0,49

0,392

80%

Agriculture

Reduced burn and slash

cultivation, chemical fertilizer

0,06

0,008

13%

Waste

Solid waste management

0,25

0,048

19%

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15 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

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