FEED IN TARIFF & QUOTA IN RENEWABLE ENERGY IN INDONESIA

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MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

FEED IN TARIFF & QUOTA IN RENEWABLE

ENERGY IN INDONESIA

By Director General of New Renewable Energy and Energy Conservation

Presented at

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I. ENERGY POLICY

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II. NATIONAL PRIMARY ENERGY MIX TARGET

4

III. EFFORTS TO INCREASE NRE UTILIZATION

5

IV. NRE DEVELOPMENT AND UTILIZATION

STRATEGY

7

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1. ENERGY CONSERVATION :

to increase energy efficiency on

supply and demand side, e.g industrial sector, transportation,

household and commercial.

2. ENERGY DIVERSIFICATION :

to increase the share of new

renewable energy use in the primary energy mix. e.g:

RENEWABLE ENERGY a. Geothermal, b. Hidro, c. Bioenergy, d. Solar, e. Wind,

f. Ocean wave and current.

NEW ENERGY

a. Liqiufied Coal b. Coal Bed Methane c. Gasified Coal

d. Nuclear e. Hidrogen

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CURRENT CONDITION 2011

ENERGY ELASTICITY= 1,65 NON FOSSIL ENERGY SHARE 5%

2025 TARGET

PRESIDENTIAL REGULATION NO. 5/2006

ENERGY ELASTICITY LESS THAN 1 IN 2025 OPTIMIZING NEW RENEWABLE ENERGY SOURCES

Biofuel 5% Geothermal 5% Nuclear, Hydro, Solar, Wind, and Other NRE 5%

Liquified Coal 2%

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1. IMPROVING POLICY AND REGULATION

 Some sub-sectors of renewable energy still has not been set. Therefore, the Government continues to improve the regulation of development and utilization of renewable energy, including the preparation of draft government regulations of new renewable energy.

2. CREATING MARKET

 through the supply and utilization of variuos NRE, obligating National Electric Company (PT PLN) to buy electricity, the application of Indonesian National Standard (SNI), etc.

3. FEED-IN TARIFF and CEILING PRICE

 Declared through the Minister of Energy and Mineral Resources Regulation, that regulate the FiT and ceiling price of electricity from renewable energy purchased by National Electric Company.

4. PROVIDING INCENTIVES AND FACILITIES

 Reduction of taxes and customs duties, licensing procedures more simple.

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5. THE FUNDING AND OTHER SUPPORTING

 Providing fund to improve energy acess in remote and isolated area

6. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES

 Education and training in the field of renewable energy

 Improving NRE networks, supporting the establishment of organization/association

7. INCREASING RESEARCH IN THE FIELD OF NEW RENEWABLE ENERGY

 Increase research cooperation;  Increase kind of research

8. INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION

 Cooperation for capacity building and technology transfer

 Lessons learned for the implementation of new renewable energy policies and programs

 Increase new renewable energy market and technology for NRE component (small-scale turbine) abroad.

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1. Improvement of the national electricity supply through the development of

Hydro Power Plant;

2. Improvement of the national electricity supply through the development of

Bioenergy Plant;

3. Improvement of the electricity access in remote areas, small islands and

border areas with Micro Hydro and Solar Power Plant;

4. Development of wind power and ocean energy plant pilot project in order to

prepare the stage of commercialization.

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1. CURRENT CONDITION

 Hydro Power Plant installed capacity: 5,711 MW

 Mini/Micro Hydro Power Plant installed capacity: 230 MW

2. DEVELOPMENT PROGRAM

 Improving coordination with permitting authorithy;  Harmonizing regulation in the field of hydropower;

 Providing capacity building, technical guidance, socialization and workshops in order to improve the quality of human resources

 To accelerate the Phase II of 10,000 MW Program

 To encourage investment in Micro/Mini Hydro PP through cooperative (Koperasi), private and other business enterprises in electricity supply.

 To encourage capability of domestic manufacturer;  Providing government fund (APBN).

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MINI/MICRO HYDRO POWER PLANT FEED IN TARIFF

(MEMR REGULATION NO 4 YEAR 2012)

WILAYAH

Price for Medium Voltage (Rp/kWh)

Price for Low Voltage (Rp/kWh)

INCENTIVE FACTOR (F)

Jawa and Bali 656 x F 1,004 x F 1

Sumatera and Sulawesi

787 x F 1,205 x F 1.2

Kalimantan, West and East Nusa Tenggara

853 x F 1,305 x F 1.3

Maluku and Papua 984 x F 1,506 x F 1.5

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1. CURRENT CONDITION

 Biomass Power Plant on-grid installed capacity: 133,7 MW

2. EBT DEVELOPMENT INCENTIVES FOR ELECTRICAL ENERGY ON-GRID

 Prioritization of local renewable energy development (no need auctioned)  Electricity purchase obligation of renewable energy by PT PLN (Persero)

 Pricing based on economic (Feed-in-Tariff for electricity from renewable energy)

 The GoaI have already released the ministerial regulation on biomass Power Plant Tariff (MEMR Regulation No 19 Year 2013)

 Income tax incentives for investment in renewable energy

 Remission from Import charge for EBT

 Lincensing procedures facility

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No. Energi Kapasitas Harga Pembelian Listrik Pengolahan Sampah Kota (MSW) dengan teknologi Zero Waste *)

1. Tegangan Menengah s.d 10 MW Rp. 1.450,- / kWh 2. Tegangan Rendah s.d 10 MW Rp. 1.798,- / kWh Pengolahan Sampah Kota (MSW) dengan teknologi Landfill **)

1. Tegangan Menengah s.d 10 MW Rp. 1.250,- / kWh 2. Tegangan Rendah s.d 10 MW Rp. 1.598,- / kWh

Catatan :

*) Teknologi Zero Waste merupakan teknologi pengelolaan sampah sehingga terjadi penurunan volume sampah yang signifikan melalui proses terintegrasidengan gasifikasi atau insenerasi;

**)Teknologi Sanitary Landfill merupakan teknologi pengolahan sampah dalam suatu kawasan tertentu yang terisolir sampai aman untuk lingkungan

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Energy and Mineral Resources for People’s Welfare

1.

CURRENT CONDITION

 Solar Power Plant installed capacity: 27.23 MW 2.

DEVELOPMENT PROGRAM

 As an incentive to encourage development of renewable energy including solar PV.

 The GoaI have already released the ministerial regulation on solar PV Power Plant Tariff (MEMR Regulation No 17 Year 2013)

 The tariff levels will be based on ceiling price of 25 cent/kWh (using modules with local content < 40%, i.e. considered as imported modules) and 30 cent/kWh (using modules with local content ≥ 40%)

 The application for the ceiling price will be done through bidding process using online system based on certain quota per annum

 The quotas have already determined by Director General of NRE&EC

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ACEH: 4 MWp, 3 PLTS Sabang, 1 MWp Sinabang (Simeulue), 2 MWp Singkil, 1 MWp SUMUT: 2 MWp, 1 PLTS Nias, 2 MWp SUMBAR: 2 MWp, 1 PLTS  Mentawai, 2 x 1 MWp BENGKULU: 1 MWp, 1 PLTS  Muko-Muko, 1 MWp RIAU: 8.5 MWp, 6 PLTS  Siak, 1 MWp  Bengkalis, 1.5 MWp  Ranai , 1 MWp  Selat Panjang, 1.5 MWp  Tj Balai Karimun, 2.5 MWp  Tj Batu , 1 MWp BABEL: 13 MWp, 2 PLTS  Bangka, 2 x 5 MWp  Belitung, 3 MWp JATIM: 4 MWp, 4 PLTS  Kangean, 1 MWp NTB: 17 MWp, 5 PLTS  Sumbawa, 3 MWp NTT: 14 MWp, 9 PLTS  Kupang, 5 MWp  Atambua, 1 MWp  Rote, 1 MWp KALBAR: 9.5 MWp, 7 PLTS  Ketapang, 2.5 MWp  Ngabang, 1 MWp  Sanggau, 1.5 MWp  Sintang, 1.5 MWp  Nanga Pinoh, 1 MWp  Sekadau, 1 MWp  Putussibau, 1 MWp KALTENG: 2 MWp, 2 PLTS  Sukamara, 1 MWp  Nanga Bulik, 1 MWp KALSEL: 2 MWp, 1 PLTS  Kotabaru, 2 MWp KALTIM: 2.5 MWp, 2 PLTS  Nunukan, 1.5 MWp  Tj Selor, 1 MWp SULTENG: 2 MWp, 2 PLTS  Tolitoli, 1 MWp  Kep. Banggai, 1 MWp GORONTALO: 2 MWp, 1 PLTS

 Gorontalo, 2 MWp SULUT: 4 MWp, 4 PLTS  Tahuna, 1 MWp

 Siau, 1 MWp  Karakelong, 1 MWp  Talaud, 1 MWp SULTRA: 13 MWp, 7 PLTS  Bombana, 1 MWp  Kendari, 2 x 3 MWp  Kolaka, 2 MWp  Bau-Bau, 2 MWp  Raha, 1 MWp  Wangi-Wangi, 1 MWp MALUT: 7.5 MWp, 6 PLTS  Ternate-Tidore, 2.5 MWp  Jailolo-Sofifi, 1 MWp  Tobelo-Malifut, 1 MWp  Bula, 1 MWp  Bacan, 1 MWp  Sanana, 1 MWp PAPUA BARAT: 5 MWp, 3 PLTS  Manokwari, 2 MWp  Fak-fak, 1 MWp  Sorong, 2 MWp PAPUA: 14.5 MWp, 7 PLTS  Jayapura, 6 MWp  Biak, 1.5 MWp  Kaimana, 1 MWp  Serui, 1 MWp  Merauke, 1.5 MWp  Nabire, 1.5 MWp  Timika, 2 MWp MALUKU: 10.5 MWp, 7 PLTS  Ambon, 4.5 MWp  Seram, 1 MWp  Namlea, 1 MWp  Tual, 1 MWp  Dobo, 1 MWp  Saumlaki, 1 MWp

SEBARAN LOKASI KUOTA KAPASITAS PLTS FOTOVOLTAIK TAHUN 2013

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1.

CURRENT CONDITION



Wind Power Plant installed capacity : 1.4 MW.



Ocean Current/waves still in pilot project, some small-scale pilot (10 kW) are built,

e.g at Baron Beach, NTT

2.

DEVELOPMENT PROGRAM



Conducting feasibility study and pilot project for wind and ocean currents/waves

power plant in the potencial area, e.g East Nusa Tenggara.



Increasing foreign partnership in terms of capacity building, technology transfer in

the development of Wind and Ocean Currents / Waves Power Plant



Encouraging domestic industrial competitiveness to manufacture components of

wind and ocean currents/waves power plant

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 PRODUCTION COST

 The production cost is relatively higher than the conventional energy, so it’s difficult to compete with the conventional energy

 INVESTMENT

 The investment cost is quite high. However, investment in new renewable energy industry is quite in demand by domestic investors

 TECHNOLOGY

 Some of technologies have been able to developed domestically, such as small to medium-scale power plant technologies;

 Renewable energy technologies are still provided by the foreign.

 HUMAN RESOURCE

 Quantity and quality of human resources in the field of renewable energy is still quite limited;

 People’s acceptance for new renewable energy is still relatively low, since most of people feel more comfortable using conventional energy.

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1. The national energy supply is still dominated by fossil

energy, while the new and renewable energy has not

been widely utilized.

2. Development of New Renewable Energy and Energy

Conservation in Indonesia need effort and support

hardly

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Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540 e-mail: [email protected]

MINISTRY OF ENERGY AND MINERAL RESOURCES

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No Nama Perusahaan COD Jenis kontrak Lokasi PLN Wilayah Jenis biomasa Kapasitas Kontrak (MW)

1 PT Riau Prima Energy 2001 Excess power Riau PLN Wilayah Riau palm waste 5

2 PT Listrindo Kencana 2006 IPP Bangka PLN Wilayah Bangka Palm waste 5

3 PT Growth Sumatra 2006 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 6 4 PT Indah Kiat Pulp &

Paper

2006 Excess power Riau PLN Wilayah Riau palm waste 2

7 PT Belitung Energy 2010 IPP Belitung PLN Wilayah Babel Palm waste 7

8 PT Growth Sumatra 2010 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 9

9 PT Pelita Agung 2010 Excess power Riau PLN Wilayah Riau Palm waste 5

10 Permata Hijau Sawit 2010 Excess power Riau PLN Wilayah Riau Palm waste 2

11 PT Navigat Organic 2011 IPP Bali PLN Dist Bali MSW 2

12 PT Navigat Organic 2011 IPP Bekasi PLN Dist Jabar MSW 6

13 PT Growth Asia 2011 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10 14 PT Growth Asia 2012 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10

15 PT Navigat Organic 2012 IPP Bekasi PLN Dist Jabar MSW 6,5

TOTAL KAPASITAS “ONGRID” 75,5

PERKEMBANGAN KAPASITAS TERPASANG “on-grid” PEMBANGKIT TENAGA

LISTRIK BERBASIS BIOMASA, BIOGAS & SAMPAH KOTA s.d TAHUN 2012

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No Nama Pengembang COD Jenis

kontrak Lokasi PPA Kontrak Jenis Biomassa Kapasitas Status

1 Navigat Organic 2013 IPP Bantar Gebang, Bekasi

PLN Dist Jabar

MSW (sampah) 2 Konstruksi 2 Growth Steel Group 2013 Excess

power Simalungun, Sumut PLN Wilayah Sumut Palm waste ( limbah sawit) 10 Konstruksi 3 Growth Steel Group 2013 Excess

power

Jambi PLN Wilayah

Sumsel

Palm waste 10

Konstruksi 4 Growth Steel Group 2013 Excess

power

Bekasi PLN DisJabar rice husk 10

Konstruksi 5 Growth Steel Group 2013 Excess

power

Pontianak PLN Wilayah Kalbar

Palm waste 10

Konstruksi 6 PT Nubika Jaya 2013 Excess

power

Sumatera Utara PLN Wilayah Sumut

Palm waste 6

Konstruksi 7 PT. Austindo

Aufwind

2013 IPP Belitung PLN Babel POME 1,2

Konstruksi

8 PT. Bioenergi Hijau 2013 IPP Probolinggo Kotoran Sapi 1 Konstruksi

9 PT. Canang Indah 2013 Excess power Medan PLN Wilayah Sumut Palm waste 3 Konstruksi 10 PT Victorindo 2013 Excess power

Sumatera Utara PLN Wilayah Sumut

Palm waste 5 PPA dengan

PLN Wilayah Sumut