Indonesia National Energy Planning
2006
Current Condition
Consumption rate is quite high to drive the economics of the country average increasing rate/year = 7%
Fossil Reserved is limited, however production rate is maintained because of high demand of domestic needs
High potential of renewable energy, yet no optimal use
Energy diversification is not optimal imbalance energy mix
Energy Efficiency potential is high in every sector, no optimal use high energy intensity level (about 1.8)
Low ratio of electrification Low ratio of electrification 54% in year 2004 54% in year 2004
Increased domestic energy price in line with the trend of Increased domestic energy price in line with the trend of world energy priceworld energy price
The high demand of domestic energy (In indonesia, The high demand of domestic energy (In indonesia, energy – in particular electricity – is still public goods, energy – in particular electricity – is still public goods, government is obliged to secure electricity supply government is obliged to secure electricity supply
Fossil fuel consumption has to be decreased, mainly Fossil fuel consumption has to be decreased, mainly because the price is increased while reserve is because the price is increased while reserve is decreaseddecreased
Diversification energy has to be done, yet the Diversification energy has to be done, yet the investment condition has not support this policyinvestment condition has not support this policy
Energy conservation – in particular energy efficiency – Energy conservation – in particular energy efficiency – need to be encouraged more (avoid conflict with need to be encouraged more (avoid conflict with another policy with is intensification of fossil energy another policy with is intensification of fossil energy exploration exploration
Domestic Problems
Energy Security is the main problem, policies need to be build to over come this problem
ChallengeChallenge
SECURITY OF SUPPLYSECURITY OF SUPPLY
Increased fossil fuel reserved by exploring new wells
Speed-up the energy diversification efforts
Encouraging energy conservation
Three Existing Energy PoliciesThree Existing Energy Policies
INCONSISTENCY OF POLICIES???INCONSISTENCY OF POLICIES???
Electricity GenerationElectricity Generation TransportTransport IndustryIndustry House hold and House hold and CommercialCommercial
Type of Type of EnergyEnergy
CoalCoal Coal LiquefactionCoal Liquefaction CoalCoal Coal BriquetteCoal Briquette
GasGas GasGas Gas Gas Gas KotaGas Kota
LPGLPG LPGLPG LPGLPG
Synthetic fuel (GTL)Synthetic fuel (GTL)
Fuel CellFuel Cell Fuel CellFuel Cell Fuel cellFuel cell Fuel CellFuel Cell
Bio DieselBio Diesel Bio Fuels (bio diesel, Bio Fuels (bio diesel, bio ethanol, bio oil)bio ethanol, bio oil)
Bio fuelsBio fuelsBio massBio mass
Bio fuels Bio fuels
Bio gasBio gas
SolarSolar
GeothermalGeothermal
ElectricityElectricity ElectricityElectricity ElectricityElectricity
Micro HydroMicro Hydro
DME (DME (Dimethyl EtherDimethyl Ether))
WindWind
Energy In SituEnergy In Situ
NuclearNuclear
Alternative Energy (Government Definition)
Coal2%
Oil20%
Gas30%
Bio Fuels5% Geothermal
5%
Hydro2.61%
Coal33%
Other5%
Wind0.0301%
Fuel Cell0.00%
Biomass0.7417%
Nuclear1.4032%
2004Oil : 53%Gas : 19%Coal : 21%Hydro : 4%Geothermal
: 3%
2025 Target on National Energy-Mix
Perpres No. 5 Tahun 2006
Projection of Indonesia Primary Energy (With and Without Energy Conservation)
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
Ju
ta S
BM
Skenario Tanpa Konservasi Skenario RIKEN
Notes:
Juta SBM = Million Barrels Oil Equivalent
Skenario Tanpa Konservasi = Without Conservation Scenario
Skenario RIKEN = With Conservation Scenario
Planning on Energy-mix for Electricity Generation
42% 47%
60%70% 71%
19%
24%
20%
14% 12%
5%
6%
6% 7%
9%
9%
8%8% 8%
24%15%
6% 2% 2%
6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010
Coal Gas Geothermal Hydro Oil / Fuel
Energy Difersification for Domestic Sector (Household Sector)
0
50
100
150
200
250
300
350
400
Mill
oin
Bar
rels
Oil
Eq
.
Baseline Diversification
0
50
100
150
200
250
300
350
400
Baseline Diversification
Mil
lio
n B
arre
ls O
il E
q.
Electricity Gasoline LPG City Gas Brickets
Energy Diversification for Industrial Sector
0
100
200
300
400
500
600
700
800
900
1000
Mill
ion
Bar
rels
Oil
Eq
.
Baseline Diversification
0
500
1000
1500
2000
2500
Baseline Diversification
Mil
lio
n B
arre
ls O
il E
q.
Electricity Coal Gas Oil LPG Coal Total for Industry
Energy Diversification for Transportation Sector
0
100
200
300
400
500
600
700
Baseline B10
Mil
lio
n B
arr
els
Oil
Eq
.
Avgas Gas LPG
Fuel Oil Bio Fuel Electricity
Diesel Premium (Oil)
0
100
200
300
400
500
600
700
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
Mil
lio
n B
arr
els
Oil
Eq
.
Baseline Diversification
Measures to improve Energy diversification and Energy Conservation
Erase subsidy for oil in staging phasesDefine energy price according to its economic valuesImprove policiesHuman Resource Development to support the improvement of policies through competency-based regulationsEncourage and declare standard, certification and labellingExecute Energy AuditImprove dissemination and socialization pf information –in particular on energy efficiency-
Green Energy Policies(Ministerial Decree No. 002 year 2004,
Ministry of Energy and Natural Resources)
Focused on Policies of Energy Diversification and Focused on Policies of Energy Diversification and Energy Conservation, as followsEnergy Conservation, as follows:
Optimalization of Renewable Energy Use
Efficiency of Technology on Energy Utilization (both Renewable and Fossil)
Energy Efficiency Culture
Owner Owner : Small Enterprises : Small Enterprises
CapacityCapacity : : << 1MW/generation 1MW/generation
Location Location : included in PLN grid : included in PLN grid
PricePrice : 0,6 – 0,8 x Production Cost of PLN: 0,6 – 0,8 x Production Cost of PLN
Distributed Small-Scale Electricity Generation
(Ministerial Decree No.1122K/30/MEM/2002, Ministry of Energy and Natural Resources)
Policies that regulated operational of public Policies that regulated operational of public participation process on supply of electricity: participation process on supply of electricity:
Medium-Scale Electricity Generation weith Renewable Energy Source
(Ministrial Regulation No. 002/2006, Ministry of Energy and Natural Resources)
OwnerOwner : Enterprises: Enterprises CapacityCapacity : 1 < PSM : 1 < PSM ≤ 10 MW≤ 10 MW PricePrice : 0,6 – 0,8 x Production Cost of PLN: 0,6 – 0,8 x Production Cost of PLN Purchasing Contract Period : 10 years and can be Purchasing Contract Period : 10 years and can be
renewedrenewed
Supply and Usage of Bio Fuels as an Alternative Fuel
(Presidential Instruction No.1/2006)
Instruct relevant Ministers, Governors and Majors to execute efforts to speed-up the supply and usage of bio fuels, as follows:
Declare incentive and tariff policies, and fiscal incentive for supply and usage
Declare standard and quality, system and procedures, and market system of bio fuel
Supply of land and seeds as raw material
Development of indigenous technology and equipments
Encouraging small enterprises to develop, explore and trade bio fuel
Increase usage of bio fuel in transportation sector
Execute socialization and dissemination of information
Supply and usage of Liquid Coal as Alternative Fuel (Presidential Instruction No.2/2006)
Instruct relevant Ministers, Governors and Majors to execute efforts to speed-up the supply and usage of Liquid Coal, as follows:
Declare incentive and tariff policies, and fiscal incentive for supply and usage
Secure the supply of coal as raw material
Declare standard and quality, system and procedures, and market system of bio fuel
Development of indigenous technology and equipments
Encouraging small enterprises to develop, explore and trade bio fuel
Increase usage of liquid coal in transportation sector
Execute socialization and dissemination of information
Energy Efficiency Policies (1)(President Instruction No.10/2005 on Energy
Efficiency and Ministry of Energy and Natural Resources Regulation No.0031/2005 on
Modalities of Energy Efficiency Implementation)
To regulate energy efficiency implementation in the following sectors:To regulate energy efficiency implementation in the following sectors:
Commercial BuildingsCommercial Buildings AC temperature min. 25AC temperature min. 25°°CC Room Lighting max. 15 watt/m2Room Lighting max. 15 watt/m2 Decrease operational hours of electricity appliances (Switch-Decrease operational hours of electricity appliances (Switch-
off AC/Elevators one hour before close, elevators only stop in off AC/Elevators one hour before close, elevators only stop in certain levels)certain levels)
Government OfficesGovernment Offices AC temperature min. 25AC temperature min. 25°°CC Decrease the use of lightingDecrease the use of lighting Decrease operational hours of electricity appliances (Switch-Decrease operational hours of electricity appliances (Switch-
off AC/Elevators one hour before close, elevators only stop in off AC/Elevators one hour before close, elevators only stop in certain levels)certain levels)
Energy Efficiency Policies (2)
House holdHouse hold Use energy efficiency lampsUse energy efficiency lamps Decrease electricity use min. 50 watts on peak-hours ( 5 – 10 Decrease electricity use min. 50 watts on peak-hours ( 5 – 10
PM)PM) AC temperature min. 25AC temperature min. 25°°CC
TransportationTransportation Private cars with capacity of Private cars with capacity of ≥ ≥ 2000 CC, in particular in Java, 2000 CC, in particular in Java,
Sumatera and Bali, has to use Pertamax (efficient oil fuel with Sumatera and Bali, has to use Pertamax (efficient oil fuel with high octane and expensive price)high octane and expensive price)
Encouraging usage of gas as fuel for public tarnsportEncouraging usage of gas as fuel for public tarnsport
IndustryIndustry Energy audit on high energy-consumed industryEnergy audit on high energy-consumed industry Use energy efficiency products and technologyUse energy efficiency products and technology
OthersOthers Use energy efficiency lighting system for streelighting, Use energy efficiency lighting system for streelighting,
advertisement board / bill board, and other facilitiesadvertisement board / bill board, and other facilities Decrease subsidy for diesel fuelDecrease subsidy for diesel fuel