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NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND INDEPENDENCE BY: TUMIRAN MEMBER OF THE NATIONAL ENERGY BOARD 2009-2014 PERIOD DIRECTORATE GENERAL OF ELECTRICITY, 21 ST OF MARCH 2014

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Page 1: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS

ENERGY SECURITY AND INDEPENDENCE

BY:

TUMIRAN

MEMBER OF

THE NATIONAL ENERGY BOARD

2009-2014 PERIOD

DIRECTORATE GENERAL OF ELECTRICITY, 21ST OF MARCH 2014

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NATIONAL ENERGY BOARD

Non Renewable

Energy

2

Renewable

Energy

• Oil • Coal • Gas • Nuclear

• Hydro power • Geothermal • Solar power • Bio-fuel • Bio-mass • Wind power • Sea power

Human Welfare

Energy security, safety considerations

Sustainability, independence, environment and the

economy

ENERGY RESOURCES

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En

erg

y

NATIONAL ENERGY BOARD

ENERGY AND LIFE

Transportation

Lighting, household needs

Office, hotel, school administration support

Industrial purposes (for running industrial machines)

Satisfaction of industrial material needs

3

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Total Consumption

NATIONAL ENERGY BOARD

GROWTH OF ENERGY NEEDS

Konsumsi

Influencing

Factors

Total Consumption

Total Consumption

4

• Population growth • Economic growth • Construction growth (offices,

homes, hotels) • Increased welfare • Change of lifestyle

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NATIONAL ENERGY BOARD

WORLD ENERGY SITUATION

FOR CONSIDERATION

5

Page 6: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

WORLD ENERGY NEEDS Source: IEA 2013

QBTU 820 QBTU

630

• Needs in 2010 to 2040 will increase up to 56%.

6

• Needs in 2010 to 2040 will increase up to 56%. • A sharp increase from 524 Quadrillion British Thermal Unit (QBTU) to 630 QBTU in 2020 and to 820 QBTU in

2040. • OECD only increases 17%, while non-OECD will increase 90%. • Oil continues to dominate, followed by coal, gas, renewable energy, and nuclear. • Industry dominates 50% of energy needs. • Despite the Fukushima accident, the trend for nuclear energy generators continue to increase.

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NATIONAL ENERGY BOARD

POLICIES IN SEVERAL COUNTRIES

• USA: energy security is part of national security, domestic demands

encourage industry, assurance on import influences int’l security, fossil energy

sources are stored, nuclear is partially relied on for electric supply. EBT is

developed – driving job opportunities.

• China: energy i s used t o more t he econom y t h rough industry,

imported oil and gas. Renewable energy is developed, job opportunities are

open. Coal supports low-cost electricity.

• Japan and Korea: these two countries do not have energy resources and

mineral resources. Imported energy resources are used to process imported

mineral resources and to provide added value. These two countries rely on

nuclear, and for security construct energy support reserve facilities.

• EU: has its own policy that integrates the guarantee of gas, oil and electricity

supply in EU environs.

• Indonesia: must reflect and reorient d o m e s t i c e n e r g y

m a n a g e m e n t i f i t w i s h e s t o b e c o m e i n d e p e n d e n t

and have energy security.

7

Page 8: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

NATIONAL ENERGY SITUATION AND

CONDITION

8

Page 9: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

15 BIGGEST OIL CONSUMER COUNTRIES

9

Countries Oil: within organization Million barrel/day Proven reserve (billion

barrel) Consumption Production

Japan

South Korea

Canada

Mexico

France

Total of global reserve (billion barrel)

Page 10: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

15 TOP OIL AND GAS CONSUMER COUNTRIES

10

Countries Gas: billion cubic feet Consumption Production

Proven reserve (trillion cubic feet)

Japan

South Korea

Canada

Mexico

France

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NATIONAL ENERGY BOARD

8 BIGGEST GAS EXPORTING COUNTRIES (IEA 2013)

Country Gas: Billion cubic feet Proven reserve

Consumption produksi Import/export (trillion cubic feet)

Rusia 17.803 23.775 +6.314 1.688 25%

Norway 113,29 4.052 +3.435 73,10 1%

Qatar 689,70 4.705 +4.015 890 13%

Canada 3.144 5.054 +2.012 68.17 1%

Netherland 2.852 1.610 +1.353 43.44 1%

Algeria 1.085 2.922 +1.836 159 2%

Indonesia 1.327 2.692 +1.365 108.40 2%

Malaysia 1.081 2.179 +1.098 83 1%

Total of global Gas reserve(Trillion Cubic feet) 6.845

11

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5

0,5

2,6

1,94

NATIONAL ENERGY BOARD

NATIONAL ELECTRICITY INFRASTRUCTURE 2011

No. INDICATOR INDONESIA JAPAN CHINA

1 Population (thousand) 241.134 127.360 1.344.130

2 GDP (Million US$) 846.832 5.867.154 7.318.499

3 GDP/Capita (Thousand US$) 3.512 46.067 5.445

4 Total Energy Consumption (Mil. TOE) 119,2 334,7 2.613

Energy Demand/Capita

(TOE/Capita)

6 Generator Capacity (GW) PLN 34,5 287 1.073

7 Electricity usage /Capita (kwh/Capita) 655,2 8.746 3.488

8 Renewable Energy share 4,05% 16%

12

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NATIONAL ENERGY BOARD

THE NATIONAL ENERGY

BOARD AND THE NEW

PARADIGM OF NATIONAL

ENERGY MANAGEMENT

13

Page 14: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

NEW PARADIGM OF NATIONAL ENERGY MANAGEMENT

In line with growing energy demand and to optimize energy management, DPR-RI and the Government

has issued a new Law on Energy (Law No. 30/2007). According to this law, Indonesia now has an agency for managing National Energy Policies. The agency is called the National Energy Board

(Dewan Energi Nasional – DEN).

14

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Menetapkan Rencana Umum Terwujudnya

Mendukung Pembangunan

Menetapkan Langkah-langkah

NATIONAL ENERGY BOARD

Duties of the National Energy Board

Designing and Formulating

National Energy Policies (KEN)

D VISION

E Energy Nasional (RUEN) energy security Guna

N Nasional Berkelanjutan

Penanggulangan Kondisi

Krisis and Darurat

15

Designing and formulating National Energy Policies (Kebijakan Energi

Nasional – KEN)

Determining the General National Energy Plan (Rencana Umum Energi Nasional –

RUEN)

Determining Steps for Mitigating Energy Crisis and Emergency Conditions

Monitoring the Implementation of Cross-sectorial Energy Policies

Realization of Energy Security to Support Sustainable National Development

Page 16: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

NEW PARADIGM FOR CREATING NATIONAL ENERGY

POLICIES BASED ON LAW NO 30, 2007

16

Substantially approved: 28th of January 2018

Government/ President

National Energy Board

Approved National Energy Policy 2050

Formulating National Energy Policy

Expressed in Government Regulation

Described in RUEN

Validated by DEN

Execution monitored by DEN

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POSITION OF KEN, RUEN AND RUED

holders: PT, Tentang Energy

masyarakat

RUEN, RUED KEBIJAKAN Energy

menuju

Ketahanan/K

RUED Disusun oleh Government RUKN

Kabupaten

NATIONAL ENERGY BOARD

NEW PARADIGM OF ENERGY MANAGEMENT:

Melibatkan Periode berbagai stake- Law No. 30/2007 Transisi

Industri,

menyusun emandirian

NASIONAL (KEN) Energy Law No. 30/2009

Concerning

Electricity

RUEN

Provinsi a n d ditetapkan oleh DEN

RUED RUPTL

/Kota

17

Involving various stakeholders: companies,

industries, the community in creating RUEN

and RUED

Transition Period

towards Energy

Security/ Independence

Law No. 30/2007 Concerning Energy

Provincial RUED

Regency/ Municipal RUED

National Energy Policy (KEN)

RUEN Created by Government

and enacted by DEN

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MENGURANGI

TERHADAP ?????:

pengolahan

Generatoran/produksi

• Jaminan pasokan

NATIONAL ENERGY BOARD

DOES INDONESIA HAVE ENERGY

INDEPENDENCE AND SECURITY?

• Is Indonesia Energy-independent?

• Constitution of ‘45

• Oil and Gas Laws

• Mineral and Mining Laws

• Nuclear Laws

• Energy Laws

• Electricity Laws

• Supporting regulations

• etc.

Telah didukung oleh

berbagai perundang

KEMANDIRAN

KETERGANTUNGAN

• Produksi/explorasi and

ekploitasi

• Teknolgi and peralatan,

• Peralatan

• Finansial and

permodalan

• Transportasi Energy

undangan and peraturan 18

INDEPENDENCE REDUCES DEPENDENCE ON:

• Production, exploration and exploitation

• Technology, equipments, and processing

• Generation/production equipments

• Finances and capitalization • Energy transportation • Supply guarantee

Supported by various rules and regulations

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Energy internasional,

pengelolaan, meliputi, managemen,

NATIONAL ENERGY BOARD

ENERGY SECURITY

• Tersedia dengan cukup untuk kurun waktu tertentu

• Harga terjangkau oleh kemampuan masyarakat

• Tahan/Tidak mudah terpengaruh oleh gejolak lokal, regional maupun

• Memiliki independence di dalam

teknologi, transportasi dan pendistribusion,

• Memiliki kemampuan finansial setiap keadaan

• Memiliki sarana infratsruktur yang cukup

19

ENERGY SECURITY

• Sufficiently available for a certain period • At a price affordable by the community • Resistant to/not easily affected by local,

regional, or international volatility • Independence of management, including

process, technology, transportation and distribution management

• Sufficient financial capacity at all times • Sufficient infrastructures and facilities

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dari urutan 47 (tahun 2011) and urutan 29 (tahun 2010).

• Variable :

• Conventional

biofuels)

and unconventional hydrocarbon

financial and

deployment)

human constraints, fiscal regimes, and

to explore and develop available

• Environmental Acceptability : environmental

being able to afford energy services, capital and

energy

Denmark 3

…..

Japan 7

Australia 25

NATIONAL ENERGY BOARD

INTERNATIONAL ASSESSMENT OF INDONESIA‘S ENERGY INDEPENDENCE

Hasil Energy Sustainability Index Rankings oleh WEC: World Energy Council Indonesia menempati urutan 60 (tahun 2012), melorot Country Ranking

Canada 1

• Energy Resource Availability Sweden 2

resources, renewable resources (wind, solar, Zimbabwe 4

• Accessibility Barriers : Barriers (geopolitical, Colombia 5

need for major infrastructure and technology

resources.

and safety concerns USA 27 • Investment Cost Affordability : consumers Philippines 52

operating cost structures for developing various Thailand 58

• sources Indonesia 60

20

The results of Sustainability Index Ranking by WEC: Indonesia is in the 60th position in 2012, falling from 47th in 2011 and 29th in 2010.

Variables: • Energy resource availability: conventional and

unconventional hydrocarbon resources, renewable resources (wind, solar, bio-fuel)

• Accessibility barriers: barriers (geo-political, financial and human constraints, fiscal regimes, and need for major infrastructures and technology deployment) to explore and develop available resources.

• Environmental acceptability: environmental and safety concerns.

• Investment cost affordability: consumers being able to afford energy services, capital, and operational cost structures for developing various energy sources.

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NATIONAL ENERGY BOARD

Macro View of National Energy Policies

1. Changing the paradigm of Energy Policy: energy resources are not positioned as

commodities, but placed as national development assets.

2. Improving efficiency, conservation, and providing special attention for sustainable

development in the management of national energy.

3. Constantly improving the contribution of renewable energy in the national energy mix.

4. Increasing proven reserves of fossil energy and reducing its share in the energy mix.

5. Improving independence in national energy management, accelerate the creation of

new job opportunities, accelerate the role and participation of domestic industry in

the energy sector, and encouraging research and development in the energy

sector.

6. Accelerate the opening of energy access for everyone, especially for villagers and

residents of remote islands.

7. Securing energy supply, especially electricity, oil and gas.

8. Optimizing the use of natural energy resources for economic development of the

people according to Economic Added Value Process (by creating job opportunities

and industrial development).

9. Improving the understanding that fossil energy must be kept as long as possible toe

ensure security and sustainability for all stakeholders.

10. Determining energy support reserves.

21

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NATIONAL ENERGY BOARD

NATIONAL ENERGY POLICY (KEN)

The National Energy Policy is the national energy

management policy according to the principles of Fairness,

Sustainability, and Environmentally-viewed in order to create

National Energy Independence and Security

22

Page 23: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

PURPOSES OF NATIONAL ENERGY POLICY

• National Energy Policy: heading towards the

realization of energy independence and energy

security to support sustainable national

development

23

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NATIONAL ENERGY BOARD

Energy independence and Security

24

Can be achieved by: a) Not treating energy resources as mere export commodities, but as

national energy assets. b) Independence of energy management. c) Maintaining domestic energy availability and satisfaction of energy source

needs. d) Maintaining optimum, integrated, and sustainable management of energy

resources. e) Efficient energy utilization in all sectors. f) Equal and fair distribution of energy in the community. g) Developing and increasing domestic technological, industrial, and energy

service capacities. h) Maintaining energy prices in a fair, economic level. i) Creating job opportunities. j) Preserving the environment.

Page 25: NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY ...energy-indonesia.com/02electrcitylaw/0140413den.pdf · NEW PARADIGM OF NATIONAL ENERGY POLICY TOWARDS ENERGY SECURITY AND

NATIONAL ENERGY BOARD

NATIONAL ENERGY POLICY

Main Policies A. Availability of energy for national needs.

B. Energy development priority.

C. Utilization of energy resources.

D. National energy reserves.

Supporting Policies A. Energy conservation and diversification.

B. Environment and safety concerns.

C. Energy prices, subsidies, and incentives.

D. Energy infrastructures, community and industrial access.

E. Energy research and development.

F. Energy institutions.

25

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NATIONAL ENERGY BOARD

EXPLANATION ON THE DIRECTIONS OF NATIONAL ENERGY POLICY

a. Energy Availability Policies

Regulating national energy supply by improving proven reserves of fossil energy,

rationalizing of gas and coal, optimizing energy production, transportation and distribution

systems. b. Energy Supply Priority Policies

Regulating the use of renewable energy, minimizing the use of petroleum, optimizing natural

gas and new energies, coal as mainstay and security of national energy supply, and using

nuclear energy to support the security of national energy supply in large scale with strict

consideration of security. c. National Energy Resource Utilization Policies

Regulating the utilization of energy resources according to considerations of capacity,

sustainability, economy, and environmental impact. d. National Energy Reserve Policies

Regulating the guarantee of national energy security in order to mitigate energy crises and

emergency, whether caused by natural causes or the stability of world geopolitical condition. e. Conservation and Diversification Policies

Regulating the utilization of energy resources by continuing to maintain the conservation of

energy resources, improving the quality of energy resource values and diversity.

26

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NATIONAL ENERGY BOARD

Continued

f. Environmental and Safety Policies

Regulating the harmony of national energy management with the direction of sustainable

national development, preservation of natural resources, and environmental control.

g. Energy Price, Subsidy, and Incentive Policies

Regulating energy prices, subsidies, and incentives in order to ensure the supply and

business of energy with continued consideration of the community’s capacity.

h. Energy Infrastructure and Industry Policies

Regulating the improvement of energy infrastructures and encouraging the solidification of

national energy industry.

i. Energy Research and Development Policy

Regulating the role of Government, Regional Government, and Enterprises in improving

energy technology research, development and implementation until commercial stage.

j. Institution and Funding Policies

Regulating the solidification of institutional and bureaucratic systems in energy

management by Government and Regional Government according to their authority.

27

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NATIONAL ENERGY BOARD

National Energy Policy

28

National energy policy is the policy of energy management based on the principles of

fairness, sustainability, and environmental-viewed in order to achieve national energy

independence and energy security

National Energy Policy Targets

National Energy Policy Purposes

National Energy Policy Steps

Ensuring energy availability for national needs

Implementing Energy

Development Priorities

National Energy Resource

Utilization (reorientation)

Implementing Energy

Conservation and Diversification

Acceleration of Energy

Infrastructures, Community Access

and Industry

Maintaining Environment

and Safety

Regulating Energy Prices, Subsidies and

Incentives

National Energy Resource

Utilization (reorientation)

National Energy Resource

Utilization (reorientation)

Preparing National Energy

Support Reserve

Integration of Energy

Research and Development

Regulating Energy

Institutions and Funding

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Energy Input OUTPUT

NATIONAL ENERGY BOARD

CONTRIBUTION OF ENERGY IN NATIONAL

DEVELOPMENT

Energy is an essential input in economic development.

Other ECONOMIC

29

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• Oil • Refining • Transportation

NATIONAL ENERGY BOARD

ENERGY, INFRASTRUCTURES, TECHNOLOGY, R & D

AND SUSTAINABLE DEVELOPMENT

ENERGY ENERGY ENERGY SUPPLY TRANSFORMATIO DEMAND

• Renewable N • Industry

• Gas • Power Plant • Commercial

• Coal • Household

INFRASTRUCTURE TECHNOLOGY

Without the support of energy investments and policies, the supply of energy need growth will be disturbed and

sustainable development cannot be achieved

30

ENERGY SUPPLY • Renewable • Oil • Gas • Coal

ENERGY TRANSFORMATION

• Refining • Power Plant

ENERGY DEMAND • Industry • Transportation • Commercial • Household

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Non Fosil Kontribusi Energy Listrik (5-15)% Cukup, Handal, Berkualitas

Tax

Salary

NATIONAL ENERGY BOARD

CONTRIBUTION OF ENERGY/ELECTRICITY IN THE INDUSTRIAL SECTOR

fossil energy dan

Tax

Product

Natural Resources 1 SWASTA (85-95)% Added Value

Natural Resources 2 PRODUKSI Natural Resources 3 PENGOLAHAN

JOB CREATION

Teknologi SDM

Insufficient Electricity

Added Value

Transforming Brainware

& Technological Skills

NOTHING

31

Multi-plier

Fossil and Non-fossil

Energy

Contribution of Electric Energy (5%-15%)

Sufficient, Reliable, Good Quality

PRIVATE SECTOR (85%-95%) PRODUCTION PROCESSING

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NATIONAL ENERGY BOARD

PROJECTED ENERGY NEED UNTIL 2050

32

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BT

0 20

Gas Bu

25%

23,6%

31%

NATIONAL ENERGY BOARD

NATIONAL ENERGY MIX UNTIL 2050 (%)

2012 Petroleum Natural gas 5.6%

41,4%

29,4%

2030 25%

22% 30%

23%

2025 23%

30% 22%

2050

20%

25% 24%

33

Coal Renewable

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DESCRIPTION

UNIT

NATIONAL ENERGY BOARD

PROJECTED NATIONAL ENERGY NEEDS

PROJECTED YEAR

2010 2015 2020 2025 2030 2040 2050

PRIMARY ENERGY CONSUMPTION

High Scenario [BAU] Million TOE 159 225 330 450 590 920 1240

Low Scenario [Efficient] Million TOE 159 215 290 380 480 740 980

High Per Capita Scenario [BAU] TOE 0.7 0.9 1.3 1.7 2.1 3.1 4.0

Low Per Capita Scenario [Efficient] TOE 0.7 0.9 1.1 1.4 1.7 2.5 3.2

Average Growth Efficient] % 4.5 6.2 6.2 5.6 4.8 4.4 2.8

ELASTICITY 0.71 0.8 0.8 0.7 0.6 0.6 0.5

PRIMARY ENERGY CONSERVATION % 0 4.7 12.1 18.4 18.6 19.6 21.0

34

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DESCRIPTION

UNIT

NATIONAL ENERGY BOARD

PROJECTED ELECTRICITY

NEEDS

PROJECTED YEAR

2010 2015 2020 2025 2030 2040 2050

ELECTRICITY CONSUMPTION

High Scenario [BAU] TWh 148 245 397 628 933 1680 2710

Low Scenario [Efficient] TWh 148 208 341 511 733 1330 2100

High Per Capita Scenario [BAU] kWh 620 980 1521 2316 3332 5619 8827

Low Per Capita Scenario [Efficient] kWh 620 832 1308 1886 2618 4448 6840

Average Growth [Efficient] % 7 7.1 10.4 8.4 7.5 6.1 4.7

ELASTICITY 1.06 0.89 1.30 1.05 1.00 0.9 0.7

GENERATOR CAPACITY

High Scenario [BAU] GW 35 58 92 145 203 340 550

Low Scenario [Efficient] GW 35 49 79 115 159 270 430

ANNUAL AVERAGE UTILIZATION

High Scenario [BAU] Hours 4722 4731 4791 4805 5065 5435 5420

Low Scenario [Efficient] Hours 4722 4754 4834 4977 5157 5468 5470

35

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NATIONAL ENERGY BOARD

ENERGY MIX SCENARIO

Energy mix 2015 2020 2025 2030 2040 2050

Energy Total (MTOE) 215 290 380 480 740 980

Oil

share 39% 32% 25% 22% 21% 20%

Volume (MTOE) 84 93 95 106 155 196

Volume (M Barrel)) 622 688 703 784 1147 1450

Gas

share 22% 22% 22% 23% 24% 24%

Volume (MTOE) 47 64 84 110 178 235

Volume (TCF) 1,84 2,51 3,29 4,31 6,98 9,21

coal

share 29% 29% 30% 30% 27% 25%

Volume (MTOE) 62 84 114 144 200 245

Volume (M Ton)) 186 252 342 432 600 735

1 MTOE :

- 7.4 Million oil barrel

- 39.2 BCF natural gas - 3 Million ton coal lignite

Unit conversion source: BP Statistical Review, 2013

36

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NATIONAL ENERGY BOARD

OBSTACLES IN IMPLEMENTING ENERGY POLICIES

37

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NATIONAL ENERGY BOARD

OBSTACLES IN IMPLEMENTING ENERGY POLICY

1. State income continues to rely on energy resource yield.

2. Rules and regulations overlap, general legal and permit uncertainty,

especially in the energy sector.

3. Lack of coordination and integration between the energy sector and

other sectors, such as industry, trade, and technology.

4. Ambiguity of Central Government and Regional Government authority in

energy processing causes obstacles in implementing energy policy. 5. Cross-sector coordination is weak, causing tardiness and higher costs.

6. High dependence on oil fuel, especially in transportation sector.

7. High subsidy of fossil energy prices, so that new and renewable energy

development is obstructed because of higher cost than fossil energy

costs.

8. The energy sector requires large investments, thus necessitating

financial support for energy policies – especially from the national

banking sector. 9. Weak mastery of technology and weak supporting industry.

10. This sector is not too friendly to domestic resources.

38

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NATIONAL ENERGY BOARD

ACCELERATION OF ELECTRIC INFRASTRUCTURES TOWARDS ENERGY

INDEPENDENCE AND SECURITY

39

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NATIONAL ENERGY BOARD

PRINCIPLES AND PURPOSES

1. The principles of electric development: a. Benefit.

b. Fair efficiency.

c. Sustainability.

d. Economic optimization in utilizing energy resources.

e. Self-reliance.

f. Healthy business principles.

g. Safety and security.

h. Environmental protection.

i. Regional autonomy.

2. Electric development has the purpose of ensuring the availability of electric power in sufficient amount, good quality, and fair prices in order to improve the people’s welfare and prosperity in a fair and equal manner, and in order to realize sustainable development.

40

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NATIONAL ENERGY BOARD

Pre-requisites of Availability for Healthy Electric Infrastructures

1. Quantity (availability) ???? :

40 GW for 240 Million persons

1. Quality ????

2. Reliability ????

3. Price ???? (subsidy)

41

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(TWh)

31

.95

9

20

09

20

10

33

.98

3

20

11

39

.88

5

45

.25

3

20

12

47

.32

8

20

13

20

14

51

.21

4

20

15

53

.93

3

59

.91

1

20

16

20

17

65

.31

0

20

18

75

.88

3

20

19

85

.15

2

92

.31

0

20

20

20

21

97

.95

8

20

22

10

4.4

31

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

359

246

208

158

NATIONAL ENERGY BOARD

GENERAL DESCRIPTION OF THE NATIONAL ELECTRIC CONDITION

• Total Generator Installed Capacity*) : 47.328 MW (PLN 74%, IPP 22%, and PPU 4%)

• Electric Energy Consumption (2013) : 188 TWh (Household 41%, Industry 34%, Business 19%,

Public 6%)

• Electric Energy Consumption Growth (2013): 7.8% p.a.

• Electrification Ratio (2013)**) : 80.51%

• Some regions have limited electricity supply (demand > supply)

• Electric Generation Energy Mix **) : coal 51.6%, Gas 23.6%, Oil Fuel 12.5%, Hydro power 7.7%,

Geothermal 4.4%

• Total Investment (2012): ± USD 7.16 Billion

Electricity

Consumption (TWh) (MW) 386

334 310

287 266

226

174 188

134 147

Projection and Plans based on RUPTL PLN 2013-2022

42

Installed Capacity

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- JTM : 313,050 kms

50 kms • 70 kV : 534 kms

105 kms • JTR : 31,441 kms

Sumatra • • • •

: 7,694 MW (16%) 8 kms 3 kms 2 kms

• JTM : 94,957 kms • 57 kms

• Generator : 237 MW (0,5%) ,126 kms ,916 kms

• Generator : 527 MW (1%) Status: De :203,12339 kms

• Generator : • JTM : 9,441 kms

JAMALI :

: 13,100 kms

262,584 kms

• 150 kV •se7m0 bkeVr

• JTR :

NATIONAL ENERGY BOARD

Infrastruktur Penyediaan Tenaga Listrik

KALIMANTAN : • Generator : 1,935 MW (4%)

: Existing transmission network

: Planned transmission network

: Generator

• INSTALLED CAPACITY: 47,328 MW • TRANSMISSION NETWORK (38,096 kms):

- 500 KV : 5,052 kms - 275 KV : 1,028 kms - 150 KV : 27,780 kms - 70 KV : 4,228 kms

• DISTRIBUTION NETWORK (741,957 kms):

- JTR : 428,907 kms • 150 kV: 2,477 kms • 70 kV: 123 kms • JTM : 25,467 kms • JTR : 25,019 kms

SULAWESI : r : 2,392 MW (5%) • Generato

•150 kV : 3,4 • 70 kV : • JTM : 27, • JTR : 3

: MALUKU : • Generator : 269 MW (0,6%) • JTM : 4,852 kms • JTR : 2,780 kms

Generator 275 kV: 1,02 150 kV: 8,75 70 kV: 33

JTM : 94 JTR : 93,7 PAPUA :

• Pem • JTM : 3 • JTR : 3

• Generator : 33,568 MW (72%) • 500 kV : 5,052 kms Nusa Tenggara:

• JTM : 148,080 kms • JTR : 9,390 kms

Total generator installed capacity until Desember 2013 is about 47,328 MW. Transmission

network length is about 38,096 kms, and distribution network length is about 741,957 kms.

The interconnected electricity systems are the Java-Bali and the Sumatra system. 43

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5

0,5

2,6

1,94

NATIONAL ENERGY BOARD

NATIONAL ELECTRICITY INFRASTRUCTURE 2011

No. INDICATOR INDONESIA JAPAN CHINA

1 Population (thousand) 241.134 127.360 1.344.130

2 GDP (Million US$) 846.832 5.867.154 7.318.499

3 GDP/Capita (Thousand US$) 3.512 46.067 5.445

4 Total Energy Consumption (Mil. TOE) 119,2 334,7 2.613

Energy Demand/Capita

(TOE/Capita)

6 Generator Capacity (GW) PLN 34,5 287 1.073

7 Electricity usage /Capita (kwh/Capita) 655,2 8.746 3.488

8 Renewable Energy share 4,05% 16%

12

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Population

(Millions)

Generator

(billion kWh)

GDP/

Capita

1

0.41

3

54,400

0,76

8.507

NATIONAL ENERGY BOARD

National and Asean Electric Infrastructure 2012

Generator

No. Country Capacity (kWh/Capita)

GW

Brunei

Darussalam

2 Singapore 5.35 45 48,500 10,49 8.404

3 Malaysia 29.18 129,1 14,200 28,40 4.4246

4 Thailand 67.09 155 7,900 48,5 2.316

5 Vietnam 91.52 98 2,500 22,06 1.073

6 Indonesia 237,64 162 3,500 35,33 680

7 Philippines 103.77 67 3,100 647

8 Cambodia 14.95 2 1,800 164

9 Myanmar 54.58 6 1,100 110

45

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NATIONAL ENERGY BOARD

REALIZATION OF ELECTRIFICATION RATIO 2013

Electrification Ratio 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Realization 65.10% 65.79% 67.15% 72.95% 76.56% 80.51% Rencana Sesuai Draft RUKN 81.51% 83.18% 86.37% 89.56%

46

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Production and Revenue Composition

Cost

(R)

(R)

Z Profit + Z + Y > X

(BPP = P)

NATIONAL ENERGY BOARD

(Concept)

Profit

Revenue IDEAL

Revenue total > X

Subsidy (S) Y

Costs X

Profit

Revenue

(BPP = P)

Subsidy (S)

47

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TWh 26

144 275 TWh

JB : 7,6% Indonesia: 8,4%

TWh

Maluku: 10,9%

NATIONAL ENERGY BOARD

PROJECTED ELECTRICITY NEED

18 44

TWh

66 Kalimantan: 10,7%Sulawesi: 10,8% IT :10,8%

TWh

Sumatra: 10,6%

Papua: 10%

385

188 TWh

TWh TWh

2013 2022 Nusa Tenggara: 11,1%

Year 2014 2015 2016 2017 2018 2019 2020 2021 2022

Demand (TWh) 207 226 246 266 287 310 334 359 386

Sumber: RUPTL PLN 2013-2022

48

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ANGKIT TENAGA LISTRIK TAHUN 2008 – 2014

APBN

NATIONAL ENERGY BOARD

ENERGY MIX DEVELOPMENT AND TARGET

2008 2009 2010 2011 2012 2013 2014

Oil *) 36% 25% 22% 22,95% 14,97% 12,54% 9,70% Gas 17% 25% 25% 21,00% 23,41% 23,56% 22,02% Coal 35% 39% 38% 44,06% 50,27% 51,58% 57,24% Hydro 9% 8% 12% 6,80% 6,39% 7,73% 6,09% Geothermal 3% 3% 3% 5,13% 4,85% 4,42% 4,43% Other EBTs 0% 0% 0% 0,07% 0,11% 0,16% 0,52%

*) In 2014, the use of oil fuel, including biodiesel is 20%

49

% of total production,

Gwh

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NATIONAL ENERGY BOARD

Projected Total Energy Mix of Indonesia incl. IPP

LNG

Gas

Oil

Coal

Geothermal

Hydro

50

Import Biomass Solar/Hybrid Coal

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Target energy mix Pembangk

itan Tenaga Listrik

Source: RUPTL PLN 2012-2021

NATIONAL ENERGY BOARD

There is an effort to make electricity become more efficient, i.e. by diversifying primary

energy in electricity generation (supply side), by optimizing the utilization of gas,

increasing the utilization of coal (including at the mine portal) and developing generator

from renewable energy.

51

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NATIONAL ENERGY BOARD

Additional Need of Generator Capacity

Additional Need of Capacity 2013-2022: FTP-1 : 5,4 GW

FTP-2 : 17,7 GW

Regular : 36,8 GW 52

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NATIONAL ENERGY BOARD

ELECTRIC SECTOR

2012 2025 2050

Capacity (GW) 34,5 115 430

Investment 1 G equiv to 20 B U$ = 160 B U$ = 600 BU$

Technology/R&D

HR 47,976 (staff of PT PLN 120,000 persons 600,000

2012).

53

OIL

GAS

COAL

GEO-THERMAL

HYDRO

CENTRAL POWER PLANT

STEAM/DIESEL POWER PLANT

GAS POWER PLANT

COAL POWER PLANT

GEOTHERMAL POWER PLANT

HYDRO POWER PLANT

HIGH-VOLTAGE OVERHEAD POWERLINES

(SUTT)

MEDIUM-VOLTAGE OVERHEAD POWERLINES

(SUTM)

LOW-VOLTAGE OVERHEAD POWERLINES

(SUTR)

INDUSTRY

HOUSEHOLD PUBLIC

COMMERCE

TRANSMISSION SUBSTATION (GI)

DISTRIBUTION SUBSTATION

(GH) POWER GENERATOR SYSTEM TRANSMISSION GRID DISTRIBUTION GRID

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General Obstacles in

Developing

NATIONAL ENERGY BOARD

Electricity Generation Supply Infrastructures

Limited funding capacity, whether APLN or APBN.

Land procurement/ownership issues, whether for Generator or distribution system (RoW).

Duration of the permit/recommendation processes from relevant

institutions, e.g. the Ministry of Environment, Ministry of Transportation,

Ministry of Forestry and Regional Government.

Overlapping of geothermal development areas with natural preserve

and/or national park areas.

Management and technical problems with the Contractor.

Uncertainty of IPP developer’s funding.

Tendency of lenders to request Government guarantee for the funding

of IPP projects.

54

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N Energy NASIONAL

improving 2. Percepatan pembangunan

Fungsi Migas dan mendorong penyelesaian

dalam negeri. Percepat akses

Dan RUED sebagai 3. masyarakat

Sekjen DEN, Implementasi listrik and Gas)

(Tugas ke 4 secara bertahap (listrik dan

Strategic Transition Steps towards Energy Security and Independence

1. Regulating gas and coal export, reorienting for domestic needs

2. Accelerating oil and gas development, encouraging domestic development.

3. Accelerating community ac-cess to energy infrastructure and utilization of energy technology (esp. electricity and gas).

4. Gradual reduction of subsidies (electricity and oil fuel), using the funds for accelerating infrastructures.

Accelerating RUEN and

completing RUED as basis

for implementing

KEN

Improving the effectiveness of the monitoring function of the

Secretary General of DEN

and the coordination between DEN

and DPR (4th Duty of

DEN)