Energy and Mineral Resources for People’s Welfare
Berlin, March 4th, 2014
MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION
SOLAR PV FEED IN TARIFF IN INDONESIA :
REGULATION AND FRAMEWORK CONDITIONS
Directorat of Various New Energy and Renewable Energy
Energy and Mineral Resources for People’s Welfare
I. INDONESIA ENERGY CONDITION 3
II. ENERGY POLICY 5
III. NATIONAL PRIMARY ENERGY MIX TARGET 6
IV. EFFORTS TO INCREASE NRE UTILIZATION 7
V. POLICY OF SOLAR PV 8
VI. DEVELOPMENT OF SOLAR PV 9
VII. CURRENT STATUS ON ELECTRICITY TARIFF
OF SOLAR PV 10
VIII.OBSTACLES AND CHALLENGES 14
IX. CONCLUSION 15
Energy and Mineral Resources for People’s Welfare 3
Share of Non Fossil Energy 5%
1. National energy mix on 2012: 1237 Million BOE.
2. The average of growth rate of energy consumption is 7% per
year;
3. High dependence on fossil energy (94,97%, but its reserves
are more limited);
4. RE utilization and energy conservation implementation is not
optimized yet;
5. Public access to energy (modern) is still limited:
a. Electrification ratio of year 2012 is 76.47 % (23.53 % of
households not yet electrified);
b. Less of development of energy infrastructure particularly
in rural / remote areas and outer islands.
6. Linkage to environmental issues:
a. Mitigation of climate change;
b. National commitment to reducing emissions 26% by 2020.
7. Funding for energy development is limited.
Coal 23,91%
Crude Oil
46,77%
Natural Gas
24,29%
NRE 5,03%
Energy and Mineral Resources for People’s Welfare ESDM untuk Kesejahteraan Rakyat
2006 2007 2008 2009 2010 2011 2012 Sep-13 Des-2013 2014
Rasio Elektrif ikasi 63.00% 64.34% 65.10% 65.79% 67.15% 72.95% 76.56% 80.16% 79.30% 81.40%
Target RPJM 67.20% 70.40% 73.60% 76.80% 80.00%
RENCANAREALISASI
Category :
> 60 %
41 - 60 %
20 - 40 %
Aceh 89,75%
Sumut 88,71%
Sumbar 78,84%
Riau 85,45%
Sumsel 77,55%
Bengkulu 85,13%
Babel 97,96%
Lampung 74,70%
Jakarta 100%
Banten 87,04%
Jabar 79,05%
Jateng 83,95%
Jambi 72,39%
DIY 79,59%
Jatim 77,91%
Bali 77,31%
NTB 62,04%
NTT 57,58%
Kalbar 75,62%
Kalsel 79,96%
Kaltim 74,40%
Sulut 80,24%
Sulteng 69,97%
Sulsel 80,47%
Malut 76,75%
Maluku 72,85%
Papua 35,17%
Sulbar 70,13%
Kepri 83,56%
Sultra 61,99%
Papua Barat 62,97%
Kalteng 63,51%
Gorontalo 65,37%
Energy and Mineral Resources for People’s Welfare
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. Hydro,
c. Bio energy,
d. Solar,
e. Wind,
f. Ocean wave and current.
NEW ENERGY
a. Liquefied Coal
b. Coal Bed Methane
c. Gasified Coal
d. Nuclear
e. Hydrogen
f. Others methane
Energy and Mineral Resources for People’s Welfare
Oil 46.77%
Coal 23.91%
Natural Gas 24.29%
NRE 5.03%
CURRENT CONDITION
2012
ENERGY ELASTICITY= 1,65
NON FOSSIL ENERGY SHARE 5%
Oil 20%
Coal 33%
Natural Gas 30%
NRE; 17%
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%
Energy and Mineral Resources for People’s Welfare
1. IMPROVING POLICY AND REGULATION
Some sub-sectors of RE still has not been set. Therefore, the Government continues to
improve the regulation of development and utilization of NRE, including the preparation of
draft government regulations of NRE.
2. CREATING MARKET
through the supply and utilization of variuos NRE, obligating National Electric Company
(PT PLN) to buy electricity.
3. FEED-IN TARIFF and CEILING PRICE
Declared through the MEMR Regulation, that regulate the FiT and ceiling price of electricity
from RE purchased by National Electric Company.
4. THE FUNDING AND OTHER SUPPORTING
Providing fund to improve energy acess in remote and isolated area
5. IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES
Education and training in the field of RE
Improving NRE networks, supporting the establishment of organization/association
6. INCREASING RESEARCH IN THE FIELD OF NRE
Increase research cooperation; Increase kind of research
7. INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION
Cooperation for capacity building and technology transfer
Lessons learned for the implementation of NRE policies and programs
Energy and Mineral Resources for People’s Welfare
1) Increasing the share of RE use
2) Application of electricity tariff (ceiling
price) for the purchase price of
electricity from solar PV by PLN
3) Providing incentives for solar PV local
production
4) Mandatory use of local production for
solar PV development by government
funding
5) Encourage the development of solar
PV local industry
6) Solar PV development is priority for
regional and remote area
SOLAR PV PP1 MW IN BANGLI
PROVINSI BALI
Energy and Mineral Resources for People’s Welfare
1. CURRENT CONDITION
Solar PV PP installed capacity: 42.77 MW
By Government Funding, in year 2012 : 123 units Solar PV
PP (4.8 MWp), in year 2013 : 121 units Solar PV PP (5.27
MWp)
2. DEVELOPMENT PROGRAM By Government Funding, in year 2014 : 154 units Solar PV
PP
For Independent Power Producer (IPP) : The GoI have
already released the ministerial regulation on solar PV PP
Tariff (MEMR Regulation No 17 Year 2013)
Energy and Mineral Resources for People’s Welfare
1) As an incentive to encourage development of solar PV, the GoI has already
released regulation (MEMR Regulation Number 17 Year 2013 concerning on
Purchasing Electricity From Solar PV Power Plant)
2) The tariff levels are 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%)
3) The application for the ceiling price will be done through bidding process using
online system based on certain quota per annum
4) The quotas have already determined by Director General of NRE&EC
5) The total of quotas in 2013-2014 is 140 MW, in 80 Locations
6) Currently 5 Locations (12 MWp) have appointed investors through bidding process,
and 6 Locations on Bidding Process
7) Website: www.lelang.ebtke.esdm.go.id
Energy and Mineral Resources for People’s Welfare
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
Karimunjawa , 1 MWp
Raas , 1 MWp
Sapudi , 1 MWp
NTB: 17 MWp, 5 PLTS
Sumbawa, 3 MWp
Lombok Utara, 2 MWp
Lombok Timur, 4 MWp
Lombok Barat, 4 MWp
Sistem Bima, 4 MWp
NTT: 14 MWp, 9 PLTS
Kupang, 5 MWp
Atambua, 1 MWp
Rote, 1 MWp
Alor, 1 MWp
Adonara, 1 MWp
Sumba Timur, 1 MWp
Larantuka, 1 MWp
Maumere-Ropa-Ende, 2 MWp
Bajawa-Ruteng-Labuan Bajo, 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
Tanjung 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
SULSEL: 1 MWp, 1 PLTS
Selayar, 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: 9.5 MWp, 6 PLTS
Ambon, 4.5 MWp
Seram, 1 MWp
Namlea, 1 MWp
Tual, 1 MWp
Dobo, 1 MWp
Saumlaki, 1 MWp
Energy and Mineral Resources for People’s Welfare
MEMR
REGULATION NR
17/2013
(PRICE, QUOTA,
BIDDING)
DECREE OF DG
NRE&EC (QUOTA,
TENDER, AUCTION
WINNER)
PT. PLN
(ELECTRICITY
PURCHASING)
APPOINTMENT
OF IPP PPA
NATIONAL
ENERGY MIX
BIDDING
PROCESS
OF QUOTA
CONSTRUCTION
OF SOLAR PV PP
Energy and Mineral Resources for People’s Welfare
1. To make escrow account (20% of invesment total).
2. To finish financial close in 3 month after Power Purchase Agreement (PPA)
3. To start construction in 3 months after financial close
4. To reach Commercial Operation Date (COD) in 18 months after PPA.
If no reached COD in 18 months, so that can be extended until 12 months,
but will be charged by decreasing price :
Tardiness until 3 months will be charged decreasing price of 3%
Tardiness > 3 months - 6 months will be charged decreasing price of 5%
Tardiness > 6 months will be charged decreasing price of 8%
5. No allowed to transfer ownership to another business entities.
Energy and Mineral Resources for People’s Welfare
1. Solar PV initial investment is still high,
therefore cannot compete with conventional
power generation (fossil fueled power
generation);
2. The incentive mechanism is needed to develop
industry which is oriented for solar energy
utilization;
3. Solar PV system efficiency is relatively low;
4. Photovoltaic technology is not yet
implemented in industrial scale;
5. Various technical specifications of PV in the
market needs standardization.
6. Lack of education/socialization of solar PV
application to the community;
7. Lack of local government and community in
understanding solar PV technology and it’s
management.
Energy and Mineral Resources for People’s Welfare
1) The potential of solar energy in Indonesia is abundant although
until now the potential has not been widely utilized.
2) Indonesia government invite investors wishing to participate in
developing solar PV in Indonesia.
3) The development of solar PV program in Indonesia is still in its
early stage.
4) To encourage development and utilization of solar PV, the
Government of Indonesia have already released MEMR
regulation about ceiling price.
5) Indonesia government has determined the development of solar
PV to fulfill energy needs for rural/remote/isolated areas.
6) For urban areas, Indonesia government will do assessment on
PV roof-top systems.
Energy and Mineral Resources for People’s Welfare www.ebtke.esdm.go.id
Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540
e-mail: [email protected]
MINISTRY OF ENERGY AND MINERAL RESOURCES
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION
