Ministry of Energy and Mineral Resources
Directorate General of New, Renewable Energy and Energy Conservation
Directorate of Various of New and Renewable EnergyDirectorate General of New Renewable Energy and Energy Conservation - MEMR
National Electrical Day 2019 Conference10 October 2019
1
Outline
• Indonesia’s Energy Situation
• Policy and Regulation
• Renewable Energy Potential Project
INDONESIA’S ENERGY SITUATION
3
59.20%
12 . 32%RenewableEnergy
6.18%*
Fueloil
22.3%Gas
PRIMARY ENERGY MIX FOR POWER GENERATION
Third Quarter -2018
58.41%
22.92%
12.67%
ELECTRICITYCONSUMPTION (kWh/capita)• Electricity consumption continues toincrease along with electrification accessibility
expansion and economicgrowth
• Encourage a development of electric vehicle and utilization of electric stove
2014 2015 2016 2017 2018
878 918 956 1,012 1,129
1,048
TARGET
REALIZATION Q3
20172018
Coal
6.00%*
* IncludeBiofuel
The primary energy mix inpower generation is a percentage of electricity production(GWh)by each energytype.
Reducing the electricityproduction cost to achieve competitive and affordable tariff.
Decreasing the use offuel oil powergeneration.
Q3 of 2018
National Capacity of Power Plant : 65,480 MW
Target2,500 kWh
by 2025
5
Kaltim
99% → 99%
Sulut
97% → 99%
Aceh
99% → 99%
Sumut
99% → 99%
Babel
99% → 99%
Bengkulu
99% → 99%
Sumsel
91% → 98%
Banten
99% → 99%
Jabar
99% → 99%
DIY
99% → 99%
Jakarta
99% → 99% Jateng
99% → 99%
Bali
100% → 100%
Jatim
94% → 98% NTT
62% → 72%
Pabar
99% → 99%
Maluku
90% → 99%
Malut
99% → 99%
Sultra
90% → 98%Sulsel
99% → 99%
Sulbar
99% → 99%
Gorontalo
89% → 98%
Sulteng
91% → 97%
RE 98,81%PLN : 94,97%Non PLN : 3,47%LTSHE : 0,37%
: > 95 % (30 provinsi)
: 80 - 90% (0 provinsi)
: < 80% (1 provinsi)
Keterangan :
: 90 - 95% (3 provinsi)
June 2019
98,81%
ELECTRIFICATION RATIO
December 2018
98.30%
Papua
90% → 94%
Kalbar
87% → 96%
Kalsel
95% → 99%
Kalteng
84% → 94%
Kaltara
90% → 99%
NTB
90% → 98%
Sumbar
91% → 98%
Jambi
98% → 99%
Kepri
88% → 98%Riau
98% → 99%
Lampung
96% → 99%
OIL RESERVES & PRODUCTION
• Since 2008 Indonesia is no longer as oil exporting country• National reserves and production progressively decline• Changes in Indonesia's Energy History, from OPEC Members to Oil Importers
Oil Consumption
> 1.5 MBOPD
Oil Production
< 0.8 MBOPD
0
10
20
30
40
50
60
70
80
90
100
Energy
Oil Coal Gas RE
43%
28%
22%
7%
Energy Mix 2018
Installed 0,140 GWp (0,02%) GW
Installed :147.1 MW (0,04%)
Installed 1,949 GW (0,44%)
Biodiesel 200 Thousand BphInstalled : 1,858 GW (0,42%)
Installed: Large Hydro 5.39 GW Micro Hydro 0.406 GW (1,23%)
Installed - 0
Potential 207.8 GW
Resources 60.6 GW
Resource 11 GWReserve 17.5 GW
Potential 32.6 GW
Potential 75 GW
Potential 17.9 GW
PO
TEN
TIA
L
INS
TA
LLE
D
TOTAL POTENTIAL442 GW
TOTAL INSTALLED9.76 GW (2.2%)
RENEWABLE ENERGY POTENTIALS
RENEWABLE ENERGY INSTALLED CAPACITY (1)
RENEWABLE ENERGY INSTALLED CAPACITY (2)
Signed in 2017-2018
75 NEW RENEWABLE ENERGY CONTRACTS
COD Construction Financial Close
Progress Implementation
11
Progres IPP PPA 2017 - 2018
Progres PPA Jumlah (PPA) Keterangan
COD 13
PPA 2017:
• PLTA Pakkat 18 MW
• PLTM Nengar (Excess Power) 1 MW
• PLTM Tanjung Tirta 8 MW
• PLTM Kincang 1 0,35 MW
• PLTBg Mitra Puding Mas (Excess Power) 2 MW
• PLTBm Tempilang 6 MW
PPA 2018:
• PLTBg Sawit Graha Manunggal (Excess Power) 1
MW
• PLTM Sita 1 MW
• PLTS Sengkol 5 MW
• PLTS Selong 5 MW
• PLTS Pringgabaya 5 MW
• PLTM Kunci Putih 0.9 MW
• PLTS Likupang 15 MW
Konstruksi 30
Sudah FC dan memasuki tahap konstruksi
PPA 2017 : 30 IPP
PPA 2018 : -
Persiapan FC 32
• Sudah mendapatkan Bank yang akan memberi pinjaman namun syarat FC belum lengkap;
• Mencari pendanaan;
• PPA sudah berlaku efektif namun masih proses FC;
• Menyiapkan jaminan pelaksanaan dan jaminan penawaran (PPA belum berlaku efektif).
PPA 2017 : 29 IPP
PPA 2018 : 3 IPP
Total 75
POLICY AND REGULATION
12
PRIMARY ENERGY SUPPLY 2025
GOV REG 79 OF 2014 NATIONAL ENERGY POLICY
Gas
Coal Oil
NRE
Indirect Utilization
Direct Utilization
1. Geothermal PP, 7,2 GW
2. Hydro PP, 17,9 GW
3. Small Hydro PP, 3 GW
4. Bioenergy PP, 5,5 GW
5. Solar PP, 6,5 GW
6. Wind PP, 1,8 GW
7. Others, 3,1 GW
Maximize renewable energy utilization; Reduce fuel-oil consumption and refined oil import
Co
al
Gas
2015
Target of RE:Policy
• Maximize Renewable Energy utilization
• Minimize Oil utilization
• Optimize gas and new energy utilization
• Utilization of coal as the main national energy supply
• Utilization of Nuclear Power Plant as the last option
Energy Sector Commitment• Reduce GHG emissions by 314 - 398 Million Tonnes of CO2 by 2030
(RE: 54.1%; EE: 30.7%; Others: 15.2%)
• Gov Reg 79/ 2014 National Energy Policy & Perpres No 22 / 2017
National Energy General Plan: Target 23% of RE on Primary Energy Mix
& 17% Final Energy Saving from BAU Schenario
Global Commitment
• Keep global temperature rise not exceed 2oC, and strive to
reach1.5oC
14
National Commitment• Mandate of Law No. 16 of 2016 on the Ratification of Reduce GHG
emissions by 2030: 29% from BaU (National Effort) 41% from BaU
(International Support)
CLIMATE CHANGE COMMITMENT
15
Legal Basis
❑ MEMR Reg 50 of 2017 on Utilization of Renewable Energy Sources for the Provision of Electric Power;
❑ MEMR Reg 38 of 2016 on Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Border Areas, and Small Island with Population through the Implementation of Small Scale Power Supply
❑ MEMR Reg 49 of 2018 on The Utilization of Rooftop Solar PV System By Consumers of PT PLN (Persero)
Legal Basis
❑ Presidential Reg. 47 of 2017 on LTSHE❑ MEMR Reg. 3 of 2017 on Operational Guidance of
DAK Physical Assignment of Small Scale Energy❑ MEMR Reg. 05 of 2018 on Procedures for the
Provision of LTSHE for Communities Without Access to Electricity
❑ MEMR Reg. 12 of 2018 on the Implementation of Physical Activity of New Renewable Energy Utilization
INCREASING INFRASTRUCTURE RENEWABLE ENERGY CAPACITY(POWER PLANT)
Commercial:• On-grid and off-grid communal systems:
Solar PV, Mini/ Microhydro, Wind, Marine, Bioenergy PP
• Source of Funds: Private Sector (Investor)
Non Commercial:• Energy infrastructure development for
undeveloped rural areas, remote rural areas, rural in border areas
• Off-grid system: Solar PV, Mini/ Micro-hydro, Wind, Marine, Bioenergy PP, Solar PV Street Lighting, LTSHE
• Source of Funds: State Funded/ Special Allocation Fund (DAK)
Improvement of Infrastructure
Capacity of Renewable Electricity
STRATEGI PENGEMBANGAN EBT
1. Mendukung Pelaksanaan RUPTL PLN Persero 2019-2028
2. Menciptakan pasar-pasar energi yang baru melalui:
• Sinergi BUMN (contoh: LEN-Pertamina-PLN-BUMN Lainnya)
• Sinergi dengan rencana pembangunan daerah (contoh; Prov Bali,
DKI, Prov Jateng, Prov Jatim, Prov Sumut, Prov Sulsel)
• Sinergi dengan rencana pengembangan dengan
Kementerian/Lembaga (contoh:PLTS Atap dengan APBN – Kemenkeu
dan KLHK)
Electricity Purchase Implementation
1. Hydro, Solar, Wind, Biofuel,Biomass, Biogas and Ocean
2. Geothermal and Municipal Waste
Electricity Purchase Price
❑ Solar❑Wind❑ Biomass❑ Biogas❑ Ocean
If BPP (Cost of Production) at region’s electrification system:
• > The national BPP on average
Maksimum purchasing price 85% of region’s BPP
• < The national BPP on averagePrice based on agreement (b to b)
Based on Geothermal and Municipal Waste regulation
❑ Municipal Waste
❑ Geothermal❑ Hydro
Note: • Construction of the transmission interconnection between the IPP and the PLN grid may be done through business-to-business basis.• Based on Build, Own, Operate, and Transfer/BOOT scheme
Through Direct Selection
Price based on agreement (b to b)❑ Biofuel
MEMR REG 50/2017 Renewable Energy Utilization for affordable Electricity Provision for the people
If BPP (Cost of Production) at region’s electrification system:
• > The national BPP on average
Maksimum purchasing price 100% of region’s BPP• < The national BPP on average
Price based on agreement (b to b)
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COST OF PRODUCTION (BPP) 2018 (cUSD/kWh)MEMR Decree 55 K/20/MEM/2019
Sumatera: 7.29 – 11.74 cUSD/kWh
Java & Bali: 6.91 – 6.94 cUSD/kWh
Kalimantan & Sulawesi: 9.6 – 13.85 cUSD/kWh
Maluku, NTB, NTT, Papua: 15.14 – 21.34 cUSD/kWh
Electricity Tariff(Ministrial EMR Reg. No. 50/2017)
Renewable energy PowerPlant
Local BPP >National BPP
Local BPP ≤National BPP
Solar PV, wind, Biomass, Biogas, Hydro, and Ocean
Power Plant85% local BPP B to B
Geothermal, Waste, and Hydro Power Plant
100% local BPP B to B
Biofuel Power Plant B to B B to B
www.ebtke.esdm.go.id @djebtke 19@djebtkeLintas EBTKE
Renewable Energy To Provide ElectricityElectrification acceleration program in rural areas by prioritizing New and Renewable Energy based power plant
Electrification program with total capacity up to 50 MW is intended for :❑ Undeveloped Villages❑ Remote Areas❑ Villages in Border Areas❑ Inhabited Small Islands
“There are > 2500 Villages without Electricity”
GOI target to electrify 2510 villages by 2019
Business Area Procedure Tariff
• The Governor proposes business area.• The Minister of EMR authorization to
determine the business area that has been proposed by Governor.
• The Governor offers business area to business entities.
• The Governor issues IUPTL (Licence).• The Minister of EMR appoints business entities
that have already had IUPTL.
• InvestmentBased on Governor’s proposal, then Auction is held for Business Area Developer.
• AssignmentHead of Local Government can assign BUMD if there is no interested investor
• SubsidiesThe GoI calculates the amount of the subsidy to be proposed to the Parlianment (DPR) to be validated
• Non Subsidies with Agreement Tariff (refer to BPP PLN)Tariff will be set by MEMR or Governor
• Non Subsidies with National tariffElectricity tariff will correspond with PLN tariff
MEMR REGULATION 38/2016Acceleration of Electrification in Undeveloped Rural Area, Remote Areas, Border Areas, and
Small Island through the Implementation of Small Scale Renewable Energy
www.ebtke.esdm.go.id @djebtke 20@djebtkeLintas EBTKE
Export: Total energy exported from consumer to PLN grid pemonth
ROOFTOP SOLAR PV SYSTEM
INCLUDING: solar PV, inverter, consumer electricityconnection, safety system, dan export-import kWh meter.CONSUMER: PLN Consumer including industrial sector.CAPACITY: 100% installed capacity of consumer electricity(Watt).LOCATION: rooftop, wall, or other parts of building of PLNconsumer.
OBJECTIVES/ADVANTAGES
Community▪ Reducing monthly electricity bills.▪ Improving the role of the community regarding the use and
management of renewable energyGovernment and PLN▪ Increasing the percentage of NRE in the national energy mix.▪ Accelerating the solar energy utilization.▪ Encouraging the local solar energy industry.▪ Escalating the NRE investment.▪ Increasing energy security and energy independency.▪ Reducing green house gas emission.▪ Increasing the rate of employment.
EXPORT AND IMPORT CALCULATION
Formula: Imported kWh – 65% of Exported kWh
Import: Total energy imported from PLN grid to consumer per month
Imported kWh > 65% Exported kWh
The total energy deviation is paid to PLN as usual
The excess energy exported from the consumer for a particular month will reduce electricity bill for the following month. However, accumulated excess energy will be reset every 3 months (January-March, April-June, July-September, and October-December)
Imported kWh < 65% Exported kWh
MEMR REG 49 YEAR 2018 CONCERNING SOLAR PV ROOFTOP
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UPDATE PELANGGAN PLTS ATAP – SEPTEMBER 2019 (1)
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UPDATE PELANGGAN PLTS ATAP – SEPTEMBER 2019 (2)
IMPORT FACILITY
2Import duties on machinery and equipment, item, and raw materials for production Exemption from import duty on machinery and equipment:• 2 years exemption from import duty on raw
materials • Additional 2 years exemption from import
duty for raw materials if the company uses local production machinery and equipment (min 30%)
✓ MoF Reg 176/2009 jo. MoF 188/2015
✓ MoF Reg 66/2015
✓ BKPM Regulation No. 13/2017
MOF Regulation 66/PMK.010/2015
Capital Import Duty for the Development and Expansion of the Industrial Electricity Generation for General Purpose
TAX ALLOWANCE
1✓ Government Regulation No. 18/2015 jo
Government Regulation No. 9/2016
✓ BKPM Regulation No. 6/2018
✓ MEMR Regulation No. 16/2015
145 Business SegmentQualified for tax benefits, expanded from 129 segments in the previous regulation.
30 % from total investment
Income tax reduction for 6 years, 5% every year
under certain requirements:investment value or export orientation, employment, local content.
Implementation :
9 IPP (hydro & wind),
total capacity148,19
MW
TAX HOLIDAY
3✓ MoF Regulation 35/2018
✓ BKPM Regulation 1/2019
5-20years Free Tax
Max . 100 % income tax reduction
IDR 500billon Minimum investment
Implementation: 2 IPP hydro,
total capacity 531MW
5 years Free tax
IDR 100 -500billlion Minimum
investment
Max . 50 % income tax reduction
MINI TAX HOLIDAY
INCENTIF FISCAL FACILITY FOR RENEWABLE ENERGY
RENEWABLE ENERGY POTENTIAL PROJECT
24
Ministerial Decree of MEMR No. 39K/20/MEM/2019 on Ratification Power Supply Business Plan of PT PLN (Persero) 2019-2028
25
POWER SUPPLY BUSINESS PLAN BY PT PLN (PERSERO) (RUPTL 2019 – 2028)
NoRE Power
PlantCapacity 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total
1 Geothermal MW 190 151 147 455 245 415 2759 45 145 55 4,607
2 Large Hydro MW 154 326 755 - 182 1484 3047 129 466 1467 8,009
3 Mini Hydro MW 140 238 479 200 168 232 27 20 20 10 1,534
4 Solar PV MWp 63 78 219 129 160 4 250 - 2 2 908
5 Wind MW - - 30 360 260 50 150 - - 5 855
6Biomass/
Mun. WasteMW 12 139 60 357 50 103 19 5 15 35 794
7 Ocean MW - - 7 - - - - - - - 7
8 BiofuelThousand
KL520 487 291 167 151 146 154 159 166 175 2,415
Total MW 560 933 1,697 1,501 1,065 2,287 6,251 199 648 1,574 16,714
26
PROSPEK PENGEMBANGAN EBT –RUPTL DAN STRATEGI PENCIPTAAN PASAR ENERGI
No Klasifikasi Status Proyek Panas Bumi PLTA/ PLTMH PLTS PLTB PLT Bioenergi
Unit MW Lokasi MW Lokasi MW Lokasi MW Unit MW
1 COD 2019 4 185 22 285,69 13 33,82 1 60*) 6 25,3
2 Proses pembangunandan akan COD pada2020-2025
52 2.292 209 7.145,85 29 869,98 13 850 30 374,1
3 Siap dikembangkan namun perlu mendapatkan PPA
25 1.210 - - - - - - 3 56,5
4 Belum memiliki BadanUsaha Pengembang PLT 15 675 - - - - - - 32 283,5
TOTAL 96 4.362 231 7.431,54 42 903,8 14 910 71 739,4
PELAKSANAAN PROYEK PLT EBT PADA RUPTL PLN s.d. 2025
Keterangan :*) PLTB Jeneponto
RENEWABLE ENERGY DEVELOPMENT PLAN 2019
Sumatera:• 30 Projets• 1181 MW• 2572 Mil USD
Kalimantan:• 14 Projets• 137 MW• 273 Mil USD
Sulawesi:• 26 Projets• 991 MW• 2493 Mil USD
Maluku & Papua:• 12 Projets• 60 MW• 156 Mil USD
Java (West):• 6 Projets• 200 MW• 495 Mil USD
Java (Central):• 19 Projets• 1672 MW• 3074 Mil USD
Java (East), Bali, Nusa Tenggara:• 48 Projets• 474 MW• 811 Mil USD
Source:
155 RE ProjetsCap. 4,718 MWInv. USD 10.51 Billion
Renewable energy developer who is interested in participating in the procurement process by PT PLN must register as a list of selected providers of PT PLN, with the following conditions: 1. Having technical experience in developing renewable energy up to the last 10 years 2. Have financial ability
29
BUSINES PROCESS OF RENEWABLE ENERGY POWER PLANT
Direct Selection by
PLN
Complete RFP / Request for
Proposal documents
consisting of Technical and
Financial documents
Electricity Price Approval by
MEMR
Request to the MEMR
Financial Model and Proposed Parameter
Rates
Negotiation Minutes/
Deal
PPA
Developer Designation Letter
UKL-UPL/Amdal Permit
SIPPA (specifically hydro power plant)
Location Permit (according to Spatial
Planning)
Feasibility Study
Financial Close
IUPTL
(Licence)
Completing Administrative and
Technical Requirements
according to MEMRRegulation 35/2013
Construction
Building Construction Permit (IMB)
Disturbance Permit HO
Decree on land rights which is authorized by
the competent authority
Construction implementation permit for
water resources (Mini hydro/Large Hydro)
IUPTL
Commercial Operation Date
Certificate of Eligibility for Operations (SLO)
Business Process based on MEMR Regulation No. 50/2017:
30
ELECTRICITY PERMIT ISSUANCE TROUGH ONLINE SINGLE SUBMISSION (OSS)
a. Business Permit:1. Electricity Supply Business License;2. Operating Permit; 3. Establishing Business Areas; 4. Issuance of electricity supporting service business
licenses conducted by SOEs or growers foreign capital/majority of shares owned by foreign investors;
5. License to Buy and Sell Cross-Country Electricity; 6. Electricity Network Utilization Permit for
Telecommunications, Multimedia, and Information Purposes from license holders determined by the Central Government
Gov Reg 24 of 2018 concerning Electronic and Integrated Business Licensing Services and MEMR Reg 39 of 2018 concerning Electronically Integrated Business Licensing Services Licensing
The authority of the Minister of Energy and Mineral Resources related to Electricity Permits through ONLINE SINGLE SUBMISSION (OSS):
b. Commercial Permit:1. Certificate of Eligibility for Operation; 2. Business Entity Certificate; 3. Certificate of Competence in Electric Power
Engineering.
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PROCEDURE FOR APPLICATION OF ELECTRICITY SUPPLY BUSINESS LICENSE (IUPTL)
IUPTL is Electricity Supply Business License for public use
Requirement ofIUPTL
NIB (Nomor Induk Berusaha)Requirement:
1. Applicant identity;2. Deed and Ratification as an Indonesian legal entity; 3. NPWP;4. Location permit;5. Environmental Permit. (In accordance with the laws and regulations in the field
of environmental protection and management life);
Technical Requirement (OSSCommitment:))
1. Applicant profile (Composition of Directors, Commissioners and Composition Stock);
2. Funding Capability;
3. IUPTL feasibility study;
4. Installation location except for Electricity Sales Business
5. Single line diagram;
6. Business type and capacity;
7. Development Schedule;
8. Operating Schedule
9. Approval of the selling price of electricity and
✓ Electric power sell agreement for power business
✓ Network lease agreement for transmission and distribution business
10. Determination of business area (according to MEMRReg28/2012) and RUPTL for Distribution, Sales, or Integrated Businesses.
Business Entities submit
licenses at OSS (oss.go.id)
Dit General of Electricity MEMR
verifies technical requirements
(OSS commitment)
COMPLETE&appropriate
?
APPLICANT
NO
YES
Complete
the required
documents
Issuance of
IUPTL
(oss.go.id)
30Work days
NIB
(Registered Bussiness
Identitiy Number)
IUPTL
(not active yet)
(MEMR Reg 35 of 2013, MEMR Reg 39 of 2018, & the Ministry of Economic Affairs Circular PENG-1/SES.M.EKON/08/2018)
Thank You