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GENERATING DIALOGUE CLEAN ENERGY, GOOD GOVERNANCE AND REGULATION

GENERATING DIALOGUE CLEAN ENERGY, GOOD GOVERNANCE AND REGULATION. by Maritje Hutapea Directorate General for Electricity and Energy Utilization Ministry of Energy and Mineral Resources. Singapore, 17-18 March 2008. Indonesian Current Energy Condition. Growth of Primary Energy. 1970

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GENERATING DIALOGUE CLEAN ENERGY, GOOD GOVERNANCE AND REGULATION

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  1. GENERATING DIALOGUECLEAN ENERGY, GOOD GOVERNANCE AND REGULATION by Maritje Hutapea Directorate General for Electricity and Energy Utilization Ministry of Energy and Mineral Resources Singapore, 17-18 March 2008

  2. Indonesian Current Energy Condition

  3. Growth of Primary Energy 1970 Oil : 88% Gas : 6% Coal : 1% Hydro : 5% Geothr : 0% 2006 Oil : 46,9% Gas : 21,8% Coal : 23,5% Hydro : 2,4% Geothr : 5,5%  Average Growth of Primary Energy 1970-2006 = 7%/year Source: DGEEU, 2005

  4. Renewable Energy Potential (2006) *) 2007

  5. Final Energy Consumption 2006 (Industrial Sector is the biggest final energy consumer) Transportation 38% Industry 40,6% Sectoral Final Energy Consumer 2006 Household & Commercial 21,4% Source: Statistic DGEEU 2006

  6. Rural Electrification Ratio (2006) Electrified Java 69,33% 97,91% Outside Java Indonesia With electricity : 54.136 desa (79,46%) Without electricity : 13.995 desa (20,5%)

  7. Electrification Ratio Customer: 33,1 million household Electrification Ratio 2006 : 59%

  8. Share of Electricity Production by Type of Energy (2006)

  9. Hydro Power, 3.11% Geothermal, 1.32% Natural Gas, 28.57% Oil 51.66% Coal, 15.34% Power Plant, 1.9% Mini/micro Hydro Power Plant, 0.1% Geothermal, Oil, 1.1% 20% Gas, 20.6% Gas, 30% BIOFUELS, 5% Geothermal, 5% RE,17% Oil, 41.7% Biomass, Nuclear, Hydro Solar Energy, Wind Power, 5% Coal Liquefaction 2% Coal , 33% Coal 34.6% NATIONAL ENERGY POLICY (PRESIDENTIAL DECREE NO. 5 YEAR 2006) CURRENT ENERGI MIX (1 million BOE) National (Primary) Energy Mix Target in 2025 1. Less than 1 for energy elasticity 2. Optimized primary energy mix National (Primary) Energy Mix of 2025 (BaU Scenario) (5 million BOE) National Energy Mix 2025 (3 million BOE) (Presidential Decree No. 5/2006) OPTIMIZING ENERGY MANAGEMENT

  10. Renewable Energy Development

  11. TARGET OF RENEWABLE ENERGY IMPLEMENTATION • Short-term : Small scale for fulfilling rural basic energy needs • Long-term : To substitute fossil energy in achieving energy sustainable development • In the year 2025 : At least 15% of the energy mix should be based on renewable energy (Based on National Energy Policy)

  12. NEW RENEWABLE ENERGY DEVELOPMENT PLAN (Based on the Blueprint of National Energy Management)

  13. RENEWABLE ENERGY UTILIZATIONS • Electrification • Water Pumping • Battery Charging • Rural Health Center Refrigerator • Telecommunication • Solar Cooker • Water Heater • Agriculture/Fishery Product Drying • Water Distillation • Fuel for Transportation

  14. ☼Rural Electrification Program • Replacing diesel power plant by using local energy sources: micro hydro, solar PV, wind, biomass (stand alone/or hybrid system) • Government and regional government provide budget for rural electrification  rural consumers are obliged to pay monthly payment depends on local conditions • Establishing local institution in operation and maintenance of the asset.

  15. ☼Rural Electrification Development • Development of isolated system in remote areas with the utilization of local energy resources, such as micro hydro, wind, solar PV, etc., through: • Stand alone • Hybrid system: Diesel-Solar PV, Micro hydro-Solar PV, Wind-Solar PV. • Existing Renewable Energy Installed Capacity for Rural Electrification: • Solar PV : 12 MW • Micro hydro : 207 MW • Wind : 1 MW • Biomass : 150 kW • Target to be achieved in 2025  Rural Electrification 95%

  16. ☼Rural Electrification Project in 2007

  17. ☼Rural Electrification Project in 2008 • Located in 29 provinces • Consist of: • solar energy : SHS (± 35,000 units @ 50 Wp) and centralized solar PP (4 units @10 kW) • mini/micro-hydro (capacity: 20 – 500 kW) • wind energy (± 150 units @ 50 Wp) • Hybrid: wind-diesel and solar-diesel

  18. TARGET SSEV (Cumulative) ☼Self-sufficient Energy Village (SSEV) Program • SSEV is a village having capability to produce a part/whole their energy demand for consumptive and productive use. • CRITERIA • Utilization of locally available energy (renewable energy) • Creation of productive activities • Job creation • PROGRAM: • Utilization of locally available energy resources • Development of productive activities • Development of applicable technologies • Development of institution and people participatory

  19. TARGET SSEV (Cumulative) ☼ Self-sufficient Energy Village Type SELF-SUFFICIENT ENERGY VILLAGE • BIOFUEL-BASED • Jatropha Curcas • Coconut • Palm • Cassava • Sugar Cane • NON BIOFUEL-BASED • Micro-hydro • Wind Turbine • Solar Energy • Biogas • Biomass

  20. TARGET SSEV (Cumulative) ☼ Target of SSEV Implementation

  21. Barrier & Strategy in Developing Renewable Energy

  22. BARRIERS TO RENEWABLE ENERGY DEVELOPMENT High investment cost  high production cost  renewable energy cannot compete conventional energy Lack of incentive and funding mechanism Lack of knowledge, awareness Lack of domestic industry’s capability to produce renewable energy technology

  23. Law & Regulation

  24. POLICIES AND REGULATIONS Energy Law (Law No. 30/2007) Geothermal Law (Law No. 27/2003) Green Energy Policy (Ministerial Decree: No. 0002/2004) Supply and Utilization of Biofuel (Presidential Instruction No. 1/2006) Regulation on Electricity Supply and Utilization (Government Regulation No. 03/2005) Small Distributed Power Generation using Renewable Energy (Ministerial Decree: No. 1122 K/30/MEM/2002) Medium Scale Power Generation Using Renewable Energy (Ministerial Regulation No. 002/2006)

  25. Energy Law (Law No. 30/2007) • Issued in 2007 that pay attention on renewable energy development and regulates such as: • Government and local government should increased the utilization of renewable energy; • Government and local government should provide incentives for renewable energy developers for certain period of time.

  26. Geothermal Law(Law No. 27/2003) To regulate the management and development of geothermal energy sources for direct and indirect utilization

  27. Green Energy Policy(Ministerial Decree: No. 0002/2004) Renewable Energy and Conservation Energy Development Policy: Green Energy Policy: Implementing the maximum utilization of renewable energy Efficient utilization of energy Public awareness in energy efficiency

  28. Presidential Instruction on Biofuel Development(Presidential Instruction No. 1/2006) Objective: Accelerating biofuel utilization for fossil (especially oil) substitution Instructions to 13 Ministers, Governors and Mayors to take necessary initiatives and actions for biofuel development from supply (feedstock) side until consumption/commercialization side Coordinated by Coordinator Minister of Economic

  29. Regulation on Electricity Supply and Utilization(Government Regulation No. 03/2005) Regulating the supply and utilization of electricity Prioritizing utilizing renewable energy for power generation Renewable Energy for Power Generation without bidding process

  30. Small Distributed Power Generation using Renewable Energy(Ministerial Decree: No. 1122 K/30/MEM/2002) • Developer : Small Enterprises • Capacity : < 1 MW • Electricity Price by Utility : • 60% x Utility’s Production Cost, if connected to the low voltage grid • 80% x Utility’s Production Cost, if connected to the medium voltage grid

  31. Medium Scale Power Generation using Renewable Energy(Ministerial Regulation : No. 002/2006) Developer : Business Entity Capacity : 1 < Cap ≤ 10 MW Electricity Price by Utility : 60% x Utility’s Production Cost, if connected to the low voltage grid 80% x Utility’s Production Cost, if connected to the medium voltage grid Purchase Contract : 10 years and could be extended

  32. Thank You www.djlpe.esdm.go.id www.energiterbarukan.net TERIMA KASIH

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