BIOENERGY POLICIES AND REGULATION IN...

Energy and Mineral Resources for People’s Welfare

BIOENERGY POLICIES AND REGULATION IN INDONESIA

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

delivered by:

DR. DADAN KUSDIANA

Director for Bioenergy

GIZ-EKONID Business Forum on “Innovative Technology to Tap Indonesia’s Bioenergy Potential”

Jakarta, November 17th 2014


I. NATIONAL ENERGY MIX

II. BIOENERGY POTENTIAL

III.BIOENERGY DEVELOPMENT

IV.BIOENERGY PROGRAM

V. CONCLUDING REMARKS



ENERGY MIX 2015 2016 2017 2018 2019 2020 2025 2050

Oil 39% 37% 36% 35% 34% 32% 25% 20%

Gas 22% 22% 23% 23% 23% 22% 22% 24%

Coal 29% 29% 28% 28% 28% 29% 30% 25%

NRE 10% 12% 13% 15% 16% 17% 23% 31%

TOTAL 100% 100% 100% 100% 100% 100% 100% 100%

NRE MIX 2015 2016 2017 2018 2019 2020 2025 2050

Geothernal 43% 44% 45% 46% 47% 47% 21% 25%

Biofuel 29% 25% 22% 21% 19% 18% 22% 21%

MSW 19% 17% 16% 15% 15% 14% 31% 19%

Hydro 10% 10% 10% 10% 10% 10% 12% 7%

Ocean 0% 0% 0% 0% 0% 0% 0% 1%

Solar 0% 0% 0% 0% 0% 0% 0% 6%

Other RE 0% 0% 0% 0% 0% 0% 0% 0%

New Energy 0% 4% 6% 8% 9% 10% 14% 22%

TOTAL 100% 100% 100% 100% 100% 100% 100% 100%

2015 2016 2017 2018 2019 2020 2025 2050

New Energy 0 1 2 3 4 5 12 67

Other RE 0 0 0 0 0 0 0 1

Solar 0 0 0 0 0 0 0 17

Ocean 0 0 0 0 0 0 0 4

Hydro 2 3 3 4 4 5 10 20

MSW 4 5 5 6 6 7 27 57

Biofuel 6 7 7 8 8 9 19 63

Geothermal 9 12 15 17 20 23 18 76

0 50

100 150 200 250 300 350

MIL

LIO

N T

OE

2015 2016 2017 2018 2019 2020 2025 2050

NRE 21 27 32 38 43 49 86 305

Coal 62 65 69 72 76 84 114 245

Gas 47 51 55 58 62 64 84 235

Oil 84 86 88 89 91 93 95 196

0

200

400

600

800

1,000

1,200

MIL

LIO

N T

OE

ENERGY MIX PROJECTIONS

ENERGY MIX PROJECTIONS


NAD 89,72

% Sumut 87,62%

Sumbar 80,22%

Riau 77,56%

Sumsel 70,90%

Bengkulu 77,53%

Babel 97,13%

Lampung 77,55%

Jakarta 99,99%

Banten 86,27%

Jabar 80,15%

Jateng 86,13%

Jambi 75,14%

DIY 80,57%

Jatim 79,26%

Bali 78,08%

NTT 54,77%

Kalbar 95,55%

Kalsel 81,61%

Kaltim 80,45%

Sulut 81,82%

Sulteng 71,02%

Sulsel 81,14%

Malut 87,67%

Maluku 78,36%

Papua 36,41%

Category :

> 70 %

50 - 70 %

< 50 %

Sulbar 67,60%

Kepri 69,66%

Sultra 62,51%

Papua Barat 75,53%

Kalteng 66,21% Gorontalo

67,81%

NTB 64,43%

year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Realisasion (%) 65,79 67,15 72,95 76,56 80,51

Target (%) 81,51 83,18 86,37 89,56 92,76 95,98 99,2


682 682 693 695 794

878 916 926 933 940

1,533

1,867 1,944 2,005

2,229 2,284

2,629 2,673 2,689

2,914 3,023

3,167

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Production Cost of Electricity (IDR)

PRODUCTION COST OF ELECTRICITY

BY REGION 2013

NATIONAL



No Potential

(MWe) Unit Sumatera Kalimantan

Jawa-Bali-

Madura

Nusa

Tenggara Sulawesi Maluku Papua Total

1 Palm oil MWe

8.812

3.384

60

-

323

-

75

12.654

2 Sugar cane MWe

399

-

854

-

42

-

-

1.295

3 Rubber MWe

1.918

862

-

-

-

-

-

2.781

4 Coconut MWe

53

10

37

7

38

19

14

177

5 Rice husk MWe

2.255

642

5.353

405

1.111

22

20

9.808

6 Corn MWe

408

30

954

85

251

4

1

1.733

7 Cassava MWe

110

7

120

18

12

2

1

271

8 Wood MWe

1.212

44

14

19

21

4

21

1.335

9 Cow dung MWe

96

16

296

53

65

5

4

535

10 MSW MWe

326

66

1.527

48

74

11

14

2.066

Total potential MWe 15.588 5.062 9.215 636 1.937 67 151 32.654

1) Based on MEMR survey in 2011 – 2012

2) Biofuel resources are palm oil, molasses, cassava, etc


25 POMs 980 ton

FFB/Hour

92 POMs 3815 ton

FFB/Hour

26 POMs 1645 ton

FFB/Hour

140 POMs 6660 ton

FFB/Hour

1 POMs 40 ton

FFB/Hour

42 POMs 2245 ton

FFB/Hour

19 POMs 990 ton

FFB/Hour

10 POMs 375 ton

FFB/Hour

1 POMs 30 ton

FFB/Hour

1 POMs 60 ton

FFB/Hour

65 POMs 5475 ton

FFB/Hour

43 POMs 3100 ton

FFB/Hour

15 POMs 770 ton

FFB/Hour

29 POMs 1545 ton

FFB/Hour

6 POMs 260 ton

FFB/Hour

7 POMs 590 ton

FFB/Hour

3 POMs 260 ton

FFB/Hour

2 POMs 150 ton

FFB/Hour

3 POMs 140 TPH

4 POMs 360 ton

FFB/Hour

16 POMs 1235 ton

FFB/Hour

58 POMs 3555 ton

FFB/Hour

-There are 686 units of palm oil mills

- Average of capaticiy 30 – 45ton/hour of FFB processed

- 20% CPO, 50% of POME, 30% ( solid waste )



190 243

1,812

2,221

2,805

3,200

119 223

358

669

1,048

1,240

70 20

1,453 1,552

1,757

1,200

0

500

1000

1500

2000

2500

3000

3500

2009 2010 2011 2012 2013 2014*

Th

ou

san

d k

L

Produksi Domestik Ekspor

-

5

10

15

20

25

30

2013 2015 2017 2019 2025 2035 2045

Cap

acit

y (K

L)

Mill

ion

s

Biodiesel Demand

Biodiesel Installed Capacity

Increasing demand of biofuel since the implementation of

mandatory policy through MEMR Regulation 20/2014

Biofuels domestic usage

mandatory policy:

• Fossil fuel substitution/reduce

oil import

• creating the market of biofuel

industrial development

• improvement of domestic

economy

installed capacity (BaU conditon)

shortages of supply

great opportunities

BIOFUEL PRODUCTION

AND UTILIZATION

Catatan : *) Up to September 2014

*) Production 2014 is a realization of domestic, export, and stock biofuel


The government has issued a new policy on feed in tariff

for biomass and biogas

FEED-IN TARIFF FOR BIOENERGY BASED

POWER PLANT (MEMR Regulation No. 27 Year 2014 and No. 19 Year

2013) No Energy Capacity Electricity Tariff Note

Medium Voltage

1. Biomass until 10 MW Rp. 1.150,- / kWh X F

2. Biogas until 10 MW Rp. 1.050,- / kWh X F Non Municipal

Solid Waste

3. Municipal Solid

Waste (MSW) until 10 MW Rp. 1.450,- / kWh Zero waste

4. Municipal Solid

Waste (MSW) until 10 MW Rp. 1.250,- / kWh Landfill

Low Voltage

1. Biomass until 10 MW Rp. 1.500,- / kWh X F

2 Biogas until 10 MW Rp. 1.400,- / kWh X F Non Municipal

Solid Waste

3 Municipal Solid

Waste (MSW) until 10 MW Rp. 1.798,- / kWh Zero waste

4 Municipal Solid

Waste (MSW) until 10 MW Rp. 1.598,- / kWh Landfill

F as an incentive factor based on the region where the power plant installed

CHALLENGE • Funding and Investment : initial investment

costs are still high and banks are less interested

in funding.

• Raw Materials : lack of availability of raw

materials that guarantee sustainable for some

commodities.

• Infrastructure : development of supporting

infrastructure is still lacking.

FUTURE PLANS • Funding and Investment : bioenergy

investment promotion to banks and investors.

• Raw Materials : mapping of potential land for

bioenergy development, coordination with the

relevant ministry / institution regarding the use of

marginal land for bioenergy crops.

• Infrastructure : coordination with relevant

agencies for the development of biomass-based

electricity network infrastructure to support the

interconnection.

Jawa Island F = 1,00 Sumatera Island F = 1,15

Sulawesi Island F = 1,25 Kalimantan Island F = 1,30

Bali, Bangka

Belitung, Lombok

F = 1,50 Riau achipelago, Papua

and the rest island

F = 1,60


SCHEME ON BIOENERGY ELECTRICITY

Utilization patterns

Selling Price Funding PPA Consumer

IPP MEMR Regulation No.27/2014

-Required to achieve financial close maximum 12 month after PPA

-Sertificates of deposit 5% of the total investment

20 years since COD

State eletricity company (utility)

Excess power MEMR Regulation No.27/2014

Developer 1 year and can be extended

State eletricity company (utility)

Mini grid Administered/ regulated by Local Government

- Developer - Government

- Community

Off grid/own use Has not been set in the ministerial regulation

- Developer - Government

- Community


Application developers

Evaluation documents

Assignment letter as IPP

Electricity supply business license

Assignment letter as IPP

COD max 40 month after PPA

Requirements:

1. Company profile;

2. Permitting

documents;

3. Feasibility Study;

4. Interconnection study;

5. Schedule for

implementation of the

development up to

COD;

6. Statement of the

availability of land;

7. Statement of

assurance of raw

materials;

8. Prioritize domestic

capabilities;

9. Certificates of deposit

5% of total

investment;

10.Be able to execute of

PPA; and

11.Willing to implement

sanctions.

Note:

= Developer

= Directorate General of New Renewable Energy and Energy Conservation

= State electricity company = Directorate General of Electricity

Feasibility Study

Permitting document

= Local gov.

Signing of PPA


• The previous feed-in tariff can not accelerate the grow of

bioenergy power plant

• Currently, the government already revised the feed in tariff

for biomass and biogas

reducing the use of fossil

fuels as fuel for power plants

and increasing national

security of supply of

electricity

• Current capacity of bioenergy based on-grid power

plant in year 2014 is 91.9 MW (palm waste 77,4 MW ;

municipal solid waste 14.5 MW) and based off-grid

power plant is 1,626 MW.

• Biomass in Indonesia can be generated electricity to

32 GW

Region and Biomass Source

Off-Grid Capacity(MW)

Sumatera Palm industry

POME Sugar industry Paper Industry

335

9 66

955

Kalimantan Palm industry

91

Jawa-Bali Palm industry Sugar industry Sampah kota

2

142 -

Sulawesi Palm industry Sugar industry

11 11

Papua Palm industry

4

Total 1,626

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013 2014*

18 18

41

59

75.5

90.5 91.9

MW

Installed Capacity (On-Grid)

*) up to October 2014


Utilization of palm waste, reducing CH4

emissin (open lagoon cover lagoon),

substitute the diesel power supply within the

area, decreasing electricity production cost,

and power supply to the people

Teknologi Anaerob Buffle Reactor – covered

lagoon

Theare are alot in the off-grid area such as

north sumatera and riau procinces

EPCC basicly from local, we’re building 3

biogas power plant in 2013-2014

Rokan Hulu, RIAU Biogas Power Plant from Palm Oil Mill Effluent (POME)

Biogas : 750 m3/hour (60% CH4)

Utilization : 1 MW for 1.050 household

PT AUSTINDO NUSANTARA JAYA

The First on-grid of biogas power plant


1. Giving priority for locally available renewable energy resources (no need

for tender)

2. Mandatory for electric utility to purchase electricity generated from

renewable energy

3. Regulated Purchasing Price (Feed-in Tariff)

4. Tax investment credit for electricity generated from renewable energy

(currently applies for geothermal)

5. Reduced or exempted custom tax for renewable energy technologies

6. Simple permit procedure

INCENTIVES FOR COMMERCIAL ON GRID IMPLEMENTATION



Waste utilization for on-grid electricity

Biomass utilization for mini grid and off-

grid electricity

Energy crops and energy forest

Iconic Island for new and renewable

energy in medium and small island



1. As part of national energy policy, the utilization of bioenergy will be continuously

implemented and improved in order to strengthen national energy security as well

as reducing national emission reduction.

2. The development of bioenergy will reduce the use and reduce import of fossil fuel

and give positive impact to economic condition.

3. Policy and regulations on bioenergy has been available and it will continuously to

be developed to increase an investment on bioenergy in order to accelerate the

utilization of bioenergy.

4. The Government together with all stakeholders will continuously support the

bioenergy development.

5. Indonesia will continue to work with other countries and international community to

develop sustainable bioenergy and also global environmental issues.


JALAN PEGANGSAAN TIMUR NO. 1, MENTENG,

JAKARTA 10320

Phone: +62 21 39830077 Fax: +62 21 31901087

www.esdm.go.id - www.ebtke.esdm.go.id

MINISTRY OF ENERGY AND MINERA

RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY

AND ENERGY CONSERVATION

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