THE POLICY OF OCEAN ENERGY DEVELOPMENT FOR ELECTRICITY IN INDONESIA

by : Dr.-Ing Hasrul L. Azahari M.Met.E Director of Directorate of Various New Energy and Renewable Energy
Presented at: World Renewable Energy Congress-Indonesia
DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION MINISTRY OF ENERGY AND MINERAL RESOURCES, REPUBLIC OF INDONESIA Bali, 17-19 October 2011

CURRENT CONDITION OF ENERGY

National Energy Mix Total in 2010 1066 million BOE
Gas 21,90%

NRE 4,79%

Oil 46,93%

Coal 26,38%

Elasticity of Energy = 1,60 Share of Non Fossil Energy < 5%

1. Public access to energy (modern) is still limited: a. Electrification ratio in 2010 was 67,15% (32,85% of households not yet electrified); b. Rural / remote areas and outer islands generally do not get access to energy); 2. Growth in energy consumption 7% per year 3. Dependence on fossil energy is still high (95.4%) 4. Limited utilization and implementation of renewable energy and Energy Conservation; 5. Linkage to environmental issues: a. Mitigation of climate change; b. Carbon trading; c. Reducing emissions 26% by 2020; 6. Limited fund for the development of energy sector

ENERGY POLICY DIRECTION

BAU**
NRE, 4.4%

NRE 3%

PERPRES 5/2006
NRE 17%

VISION 25/25

Coal,

30.7%
Oil, 43.9%

Gas 21%

Oil 42%

Oil 20%

NRE 25%

Oil 30% Coal 22%

Natural Gas, 21.0%

Coal 34%

Gas 30%

Coal 33%

Gas 23%

4,300 million BOE

3.1%
3,200 million BOE

34.6%

2,852 million BOE

ENERGY CONSERVATION (33.85%)

25 % NRE

17%
20.6%
1,131.3 million BOE

ENERGY DIVERSIFICATION

33%

22 % Coal 23 % Natural Gas 30 % Oil

NRE

Coal
Natural Gas

4.4 % 30.7 %

30% 41.7% 20%

21 %
43.9%

Oil

2010*

2015

2020

Sumber: *Estimation 2010, DEN 2010-2025, **BAU EBTKE

2025

ENERGY RESERVES AND PRODUCTION

NO
1

NON FOSSIL ENERGY

2

RESOURCES (SD)
3

INSTALLED CAPACITY (KT)

4

RATIO KT/SD (%)

5 = 4/3

Hydro

75,670 MW

5,705.29 MW

7.54 4.17 28.31 3.25 -

2
3 4 5 6 7

Geothermal
Mini/Micro Hydro Biomass Solar Energy Wind Energy Ocean Energy

28,543 MW
769.69 MW 49,810 MW 4.80 kWh/m2/day 3 6 m/s 240,000 MWe

1,189 MW
217.89 MW 1,618.40 MW 13.5 MW 1.87 MW -

NO
1

FOSSIL ENERGY
2

RESOURCES (SD)
3

RESERVES (CAD)
4

RATIO SD/CAD (%)

5 = 4/3

PRODUCTION (PROD)
6

RASIO CAD/PROD (YEAR)*)

7 = 4/6

1 2 3 4

Oil (billion barrel) Gas (TSCF) Coal (billion ton) Coal Bed Methane/CBM (TSCF)
*) assumed no new reserves are found **) include Cepu blocks

56.6 334.5 104.8 453

7.99 **) 159.64 20.98 -

14 51 18 -

0.346 2.9 0.254 -

23 55 83 -

TARGET OF OCEAN ENERGY DEVELOPMENT (Based on 25/25 Vision)

~ 2.200 MW In 2025 0.3% From National Energy Mix

DEVELOPMENT STRATEGY 1. Demand Side:

Implement energy efficient and consume low carbon Implement mandatory priority utilization of NRE incl. ocean energy

2. Supply Side:

Applying the mandatory provision of ocean energy Utilizing clean and efficient energy technologies

3. NRE Exploitation; i.e. Ocean Energy

Ocean energy exploitation by Government / Regional Government / Private Company

LEGAL INSTRUMENTS

1. Legal Instruments :
Legislation: use of the Energy Law 30/2007 and Law 30/2009 on Electricity, as a legal basis in the development of ocean energy; Regulation:

For the Conservation of Energy : Government Regulation No. 70/2009 on the Conservation of Energy
For the New Energy and Renewable Energy: Various Presidential Regulation and Regulation of the Minister for describe the mandate of Law Number 30 Year 2007 on Energy.

2. Fiscal Instruments :
Exemption of import duty, import tax, VAT exemption incl. For NRE

AGENDA 1. Improvement and Harmonization of Legislation for Ocean Energy The improvement and harmonization of legislation to encourage the

acceleration of the implementation and development of ocean energy through coordination with all stakeholders.
2. Ocean Energy Development To facilitate people's access to modern energy and commercially through incentives and the ease of investment. 3. National Capacity Building (Local Content and Supporting Industries) Improving the local content, development of national capacity and development of supporting industries.

AGENDA (continuation)

4. Improvement Organizations for Energy Self Sufficient Village Energy Self Sufficient Village is a program to boost the rural economy in the context of poverty reduction through the implementation of local energy generation i.e. in year 2011 developing ocean current power plant with capacity 10 KW in Alor (East Nusa Tenggara).
5. Increase research, development, education and training

R & D directed to accelerate technology transfer and improved efficiency and encourage the provision of engineering technology and utilization of ocean energy.

OBSTACLES AND CHALLENGES

1. Initial investment of ocean energy is still high 2. Technology of ocean energy power plant is relatively new and not well developed yet in Indonesia; 3. Most of the potential ocean energy are located in the remote areas with low energy consumption 4. Still limited availability of detailed data and information of potential ocean energy 5. Lack of funding as well as funding mechanisms that might encourage the provision and utilization of ocean energy

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

MINISTRY OF ENERGY AND MINERAL RESOURCES

Jalan Jenderal Gatot Subroto, Kav. 49 Jakarta 12950 Phone/Fax : 021-5250575

www.ebtke.esdm.go.id