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Building Local Community Support
in Bioenergy
Parlindungan Purba
Chairman of Committee II, House ofRegional Representative
Bali Clean Energy Forum, 12 February 2016
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Outline
The State of Renewable Energy in the World
The State of Renewable Energy in Indonesia
Prospect and Solutions for BioenergyDevelopment in Indonesia
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THE STATE OF RENEWABLE ENERGYIN THE WORLD
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The State of The World Energy Supply
24.5%
46.2%
16.0%
0.9%
1.8%
10.5%
0.1%
Coal
Oil
Natural Gas
Nuclear
Hydro
Biofuels
Others
28.9%
31.1%
21.4%
4.8%
2.4%10.2%
1.2%
Coal
Oil
Natural Gas
Nuclear
Hydro
Biofuels
Others
1973 2013
Over the last 40 years, there has been a changes in the state of energy supply in
the world as the role of oil as on the world energy supply has been shrinking
Meanwhile, the contribution of coal, natural gas, and nuclear have been growing
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Global New Investment in Renewable
Energy (1)
45
73
112
154
182 178
237
279
256
232
270
0
50
100
150
200
250
300
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
However, the global investment in Renewable Energy has been growing massively
This shows the trend of the world energy in the future will move to more
renewable energy
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Global New Investment in Renewable
Energy (2)
36
53
83
108121
113
162
190
149135 139
920
29
46
61 6675 89
10797
131
0
20
40
60
80100
120
140
160
180
200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Developed
Developing
New investment in renewable energy in developing countries has been constantly
increasing
While new investment in developed countries in the last five years has been
decreasing
This shows investment in renewable energy is happening not only in developed
countries but also in developing countries
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The Reason for Changes
Five factors that lead to the growth of newinvestment in renewable energy (ICED, 2013):
Uncertainties in supply of fossil energy create highcost economy
Economies of scale and falling capital equipmentcosts for alternative technologies improving bothyield and efficiency
Legislative action by governments worldwide
Greater public awareness of environmentalconcerns
The Kyoto Protocol
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The Reasons to Discuss
There are for reasons why renewable energy will be a subject todiscuss in the future (ICED, 2013)
Continued global economic growth
Energy supply will be necessary to support sustained economic growth
Continued population growth The worlds population continues to grow and more people will be
living in urban areas -> creating unprecedented energy and land useconcerns
Energy security Political instability in oil producer regions leads to uncertainty in
energy supply -> it needs to find alternative energy supply
Climate change
Threats posed by climate change is raising important question abouthow to achieve sustainable growth
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THE STATE OF RENEWABLE ENERGYIN INDONESIA
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Potential Development of Renewable Energy
NO
ENERGY
RESOURCES
INSTALLED CAPACITY (IC)
RATIO ( )
1 2 3 4 5 = 4/3
1 Hydro 75.000 MW 7.572,00 MW 10,1 %
2 Geothermal 28.910 MW 1.403,50 MW 4,9 %
3 Biomass 32.654 MW 1.717,90 MW 5,4 %
4 Solar 4,80 kWh/m2/day 48,05 MW -
5 Wind 3 6 m/s 1,87 MW -
6 Marine 49 GW ***) 0,01 MW ****) -
7 Nuclear 3.000 MW *) 30,00 MW **) -
NO SECTOR
ENERGY CONSUMPTION PER
SECTOR YEAR 2012 (JUTA
SBM) *)
POTENTIAL ENERGY SAVING
ENERGY SAVING TARGET
BY SECTOR (2025)
1 Industry 305 (39,7% ) 1030% 17%
2 Transportation 311 (40,4% ) 1535% 20%
3 Household 92 (12% ) 1530% 15%
4 Commercial 34 (4,4% ) 1030% 15%
5 Others 26 (3,4% ) 25% -
Sumber: ESDM (2014)
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Projection on Renewable Energy
Diversification
2015 2016 2017 2018 2019 2020 2025 2050
EBT 22 27 32 38 43 49 92 310
Batubara 62 65 69 72 76 84 120 250
Gas 47 51 55 58 62 64 88 240
BBM 84 86 88 89 91 93 100 200
0
200
400
600
800
1,000
1,200
JUTATOE
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Projection on Renewable Energy DiversificationPP NO. 79/2014 On National Energy Policy
Energy
Diversification2015 2016 2017 2018 2019 2020 2025 2045
Oil 39% 37% 36% 35% 34% 32% 25% 21%
Gas 22% 22% 23% 23% 23% 22% 22% 24%
Coal 29% 29% 28% 28% 28% 29% 30% 26%
RE 10% 12% 13% 15% 16% 17% 23% 29%
TOTAL 100% 100% 100% 100% 100% 100% 100% 100%
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Projection on Renewable Energy
Diversification
RE 2015 2016 2017 2018 2019 2020 2025 2045
Geothermal 43% 46% 48% 50% 51% 52% 24% 18%
Bio. Biofuel 29% 26% 24% 22% 21% 20% 26% 23%
Bio. Waste 19% 18% 17% 17% 16% 16% 36% 23%
Hydro 10% 10% 11% 11% 11% 11% 14% 6%
Marine 0% 0% 0% 0% 0% 0% 0% 1%
Solar 0% 0% 0% 0% 0% 0% 0% 6%
Wind 0% 0% 0% 0% 0% 0% 0% 0%
New Energy 0% 4% 7% 9% 10% 11% 16% 23%
TOTAL 100% 100% 100% 100% 100% 100% 100% 100%
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PROSPECT AND SOLUTIONS FORBIOENERGY DEVELOPMENT IN
INDONESIA
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Policy on Bioenergy
1. Law No 30 Year 2007 on Energy -> Priority supply and use of renewable
energy, one of them is bioenergy.
2. Presidential Regulation No 5 Year 2006 -> Biofuel target 25% by 2025
3. Presidential Instruction No 1 Year 2006 -> Instructions related to the
Minister, Governor and Mayor to take action in order to accelerate theprovision and utilization of biofuel;
4. Ministry of Energy And Mineral Resources Regulation No.4 Year 2012 and
No. 19 Year 2013 -> Electricity Price (Feed-in Tariff ) for Bioenergy Based
Power Plant (Biomass, Biogas, and Municipal Solid Waste)
5. Ministry of Energy And Mineral Resources Regulation No. 25 Year 2013 ->Biofuel usage mandatory for fossil fuel substitutions on transportation,
industry, and electricity generation as a percentage to fossil fuel
consumption (domestic market creation for biofuel)
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Potential Bioenergy Development
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Bioenergy Mandatory and Projections
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1. Regional Governments will strive to develop local renewable energyto replace conventional energy (fossil). Development of renewable
energy should become part of local energy policy.
2. Regional Government must develop local energy policy (RUED) with
the aim to meet local energy needs in a sustainable, equitable, and
optimal manners.3. Local Energy policy is aimed at ensuring security in the supply and
use of renewable energy for local population.
4. Regional Government needs to develop competent human
resources and the development of research (Research and
Technology) of renewable energy.
5. Setting up the infrastructure and local government regulations to
encourage investment in renewable energy
6. Implementation of local energy policy is directed to improve social
welfare and community development.
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MAPEBHI has recommended the Regional
Governments and Ministry of Forestry to develop the
following forest species for local bioenergy source
1. Akor (Acacia auriculiformis)
2. Mangium (Acacia mangium)
3. Akasia hibrid (Acacia sp.)
4. Kaliandra (Calliandra calothyrsus)5. Lamtorogung (Leucaena leucocyphalus)
6. Gamal (Gliricydia maculata)
7. Pilang (Acacia leucophloea)8. Weru (Albizia procera)
9. Turi (Sesbania grandiflora)
10.Bamboo : Ater, apus, duri/ori dan petung
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1. Rural Household source of cooking fuel, which canbe modernized to biomass stove (biomass)
2. Electricity generation from various types of biomass
(woodchips, briquettes, pellets)
3. Transportation fuel (Bio methanol, bio-diesel, bio-hydrogen)
4. Industrial catalysts Bio Fuel (Bio Methanol)
5. Power Plant and Industrial Base Metal Metallurgy:
Wood Torrefaction (pellets charcoal)
6. Logistics support for the defense industry/Military/
Police (Bio Diesel / Bio Solar)
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Electricity will have to be prioritized in
least developed regions
If the least developed regions can achieve economic growth of more
than 20%/year, Indonesias national economic growth can
reach8%/yearWorld Bank
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Determinants of Success in Bioenergy
Development underdeveloped regions
Local government commitment to improve
electrification for the local people.
Professional involvement in designing the best
system of biomass supply and the selection of
technology.
The commitment of community leaders in
mobilizing communities to develop local forest
for energy sources.
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Some Policy Recommendations Green banking -> the involvement of financial institutions
services to support bioenergy development Since the production some bioenergy needs land, the
government has to ensure the availability of land to produce
bioenergy -> could create tension with land for food
Incentives for local renewable energy technologymanufacturers and R&D institutions
Speed up the procurement process and the permit process for
renewable energy investment
Revision on Renewable Energy Law to strengthen GovernmentCommitment to diversify fuel mix with renewable energy
sources.
Independent Agency will help monitor and evaluate the
development of Renewable Energy Industry in the country
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A Lesson Learnt from Sweden
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A Lesson Learnt from Sweden
44.1%
40.5%
8.5%
4.0%1.2% 0.8% 0.5% 0.4%
Hidro
Nuklir
Biofuel dan Sampah
Angin
Gas
Batubara
Minyak
Lainnya
Energy Supply for Electricity
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A Lesson Learnt from Sweden
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A Lesson Learnt from Sweden
The involvement of companies and industry to support bioenergydevelopment
Central Government is actively involved in providing incentives forbioenergy development
Local governments are responsible to supply electricity for their
regions Every local government established local state-owned enterprise to
supply electricity based on bioenergy especially from waste
In Indonesia, we already have Indonesia regulation framework (LawNo 30 2009 on Electricity)
What has been done by Sweden is not happening overnight, but ithas been initiated since 40 years ago.
Indonesia needs to start implementing soon so we can secureenergy security in the future
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THANK YOU