Post on 17-Jun-2019
MINISTRY OF ENERGY AND MINERAL RESOURCES OF INDONESIA
DIRECTORATE GENERAL OF ELECTRICITY
The International Symposium of Clean Coal Day , Tokyo - Japan 2017
GOVERNMENT POLICY ON CLEAN COAL POWER TECHNOLOGY IN INDONESIA
DITJEN GATRIK
KEMENTERIAN ESDM2
OUTLINE OF THIS PRESENTATION
Context of Indonesia electricity system
Electricity Policy and Business Planning in Indonesia
Regulatory Framework for Electricity Planning
Medium-term Electricity Business Plan (2017 – 2026)
New Electricity Business Regulation for Coal-fired Power
Plants
Electricity Safety and Environmental Standards for Coal-fired
Power Plants
DITJEN GATRIK
KEMENTERIAN ESDM4
THE STRUCTURE OF INDONESIA ELECTRICITY SUPPLIES AND DEMAND
IPP : 13,781 MW
PPU : 4,826 MW
PLN : 41,049 MW
INSTALLED CAPACITY
59,656 MW
Electrification ratio
92,80%
ELECTRICITY PRODUCTION290 TWh
ELECTRICITY CONSUMPTION247 TWh
ELECTRICITY
TRANSMISSION49,799 kilometer circuits
ELECTRICITY DISTRIBUTION946,101 kilometer circuits
ELECTRICITY
CONSUMPTION PER
CAPITA
978.74 kWh/Capita
DITJEN GATRIK
KEMENTERIAN ESDM5
INDONESIA ELECTRIFICATION RATIO (JUNI 2017)
> 70%
50 – 70%
< 50%
Graphic Legend:
ACEH
96.85SUMUT
97.60
RIAU
91.86
JAMBI
91.38
BABEL
100.00
KEPRI
76.97
BENGKULU
93.80
LAMPUNG
89.75
SUMBAR
87.55
SUMSEL
85.93
BANTEN
100.00
JABAR
99.47 DIY
89.63
DKI JAKARTA
97,89JATENG
94,50
BALI
94.42
JATIM
90,65
KALBAR
87.88
NTB
79.93
NTT
59.17
PAPUA
48.74
PABAR
89,84
MALUKU
87.50
MALUT
99.05
SULTRA
76.79
SULSEL
94.77
KALSEL
90.50
KALTENG
75,76
KALTARA
86.23
KALTIM
99.09
SULBAR
83.76
GORONTALO
89.08
SULTENG
83.47
SULUT
92.47
92.80%
67.1572.95 76.56 80.51 84.35 88.3 91.16 92.75 95.15 97.35
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Electrification Ratio at the National Level
Time series electrification ratio (2010 -2019)
DITJEN GATRIK
KEMENTERIAN ESDM6
ELECTRICITY TARIFF AND SUBSIDIES IN INDONESIA
30% 41%
23%
25%
22%
103.33 101.21 99.3
56.55 59.23
44.98
2012 2013 2014 2015 APBN2017
2016(unaudited)
The actual electricity subsidies (Rp. Triliun)
The structure of electricity sales
76%
36%23%
24%
64%77%
2014 2015-2016 2017
kWh Subsidi kWh Non subsidi
Actual oil consumption for electricity (%)
8.28 7.51 7.26 5.47 3.80 2.65
14.97%12.54% 11.81%
8.58%
6.51%
4.66%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
1
2
3
4
5
6
7
8
9
2012 2013 2014 2015 2016 2017
mill
ion
Kilo
litr
es
Per
cen
Volume %
Strategies to reduce oil consumption for electricity:• The development of large size of coal power PPs,
natural gas PPs, and geothermal PPs in large electric grids to reduce operations of oil-based PPs •Develop Variable RE power plants in smaller grids and
isolated islands
DITJEN GATRIK
KEMENTERIAN ESDM7
Challenges of improving efficiency and reliability of coal-fired power plants
1. Lower thermal efficiency on average against the international benchmark2. Private power producers on average have higher availability3. Low rank coal posses challenges for electric power generation to achieve
higher efficiency while reduce the exposure to operation safety
DITJEN GATRIK
KEMENTERIAN ESDM8
PROJECTION OF GREEN HOUSE GAS EMISSIONS FROM ELECTRICITY GENERATIONS
Notes: 1. Measured in million ton of CO2
2. Source: PT PLN (Persero) RUPTL 2017-2026
1. Substantial increase of CO2 emissions that is projected to come from coal-fired power plants (batubara), constitutes more than 80% of total CO2 emissions in 2026
2. CO2 emissions from natural gas is forecasted to double over the projection period but it will only accounted for 18% of total CO2 in 2026
POLICY ON ELECTRICITY SUPPLIES
REGION-OWN
ENTERPRISE*
*COMMUNITY-BASED ENTITIY**
STATE-OWN
ENTERPISE*
PRIVATE
ENTITIES**COOPERATIVES**
ELECTRICITY BUSINESS
STATE
GOVERNMENT
REGIONAL GOVERNMENT
* : First priority of electricity provision** : integrated electricity business license
• Regulation, policies, and technical standards• Provision of funding for:
― Low income society;― Basic infrastructure in least developed regions;― Electricity development in remote and border areas;― Rural electricity development.
ELECTRICITY BUSINESS LICENCE HOLDERS
REGULATORY FRAMEWORK FOR ELECTRICITY POLICY IN INDONESIA
Basic Law 1945
Energy Law Number 30 Year 2007
Electricity Law Number 30 Year 2009
Government Regulation Number 14 Year 2012 of Electricity Business
RUEN (GENERAL OF ENERGY), RUKN (GENERAL PLAN OF ELECTRICITY)
CLEAN FOSSIL
FUEL POLICY
RENEWABLE
ENERGY
DEVELOPMENT
POLICY
ENERGY MIXPP 79/2014 (KEN)
SUSTAINABLE ECONOMIC GROWTH,
(ENERGY SECURITY, PRICE AFFORDABILITY,
ENVIRONMENT SUSTAINABILITY)
DITJEN GATRIK
KEMENTERIAN ESDM12
BASIC LAW AND ELECTRICITY PLANNING PROCESS IN INDONESIA
Law 30/2007
(ENERGY)LAW 30/2009
(ELECTRICITY)
GOVERNMENT REGULATION 79/2014
(NATIONAL ENERGY POLICY)• National energy policies based on the principles of inclusive energy access,
sustainable and environmentally acceptable to achieve self reliance onenergy and enhanced energy security,
• Prepared by the National Energy Council• Published by the Government after gaining approval from the Parliament
Presidential Regulation 22/2017
(General Plan of National Energy - RUEN)• Energy policy at the national level that
outlines overall energy plan at thenational level
• Prepared by the Government andpublished by the National Energy Council
General Plan of Electricity (RUKN)• General Plan of Electricity prepared by the
Central Government that containsdevelopment plan for electricity generation,transmission, and distribution.
• Prepared by the National Government andneeds to be approved by the Parliament. Business Plan for Electricity Supplies (RUPTL)
• Key reference document for electricitybusiness
• Prepared by state owned enterprise/privateutility companies
• Approved by the respective minister/Governorin accordance with their authority
Government Regulation 14/2012
jo PP 23/2014(Electricity Supply Businesses)
*) RUK: RUKN dan RUKD
Regional Plan of General Electricity
(RUKD)Prepared by the respective local governmentin accordance with the RUKN and consultationwith the local parliament
Regional Plan of General Energy
(RUED)Prepared by the respective localgovernment that is in accordance with theRUEN
DITJEN GATRIK
KEMENTERIAN ESDM13
50.44%
0.39%
26.72%
22.45%
THE STRUCTURE OF ENERGY MIX – CURRENT AND THE MEDIUM TERM OUTLOOK
ENERGY MIX FOR ALL SECTORS(The National Energy Plan, PP No.79/2014)
ENERGY MIX FOR
POWER GENERATIONS (GENERAL PLAN OF NATIONAL ELECTRICITY 2015-2034)
30% 41%
RENEWABLE
OIL
NATURAL GAS
COAL
23%
30%25%
22%
53%
11%
24% 50%24%
25%
6% 23%
12%
1%
ACTUAL ENERGY MIX
(2013)NATIONAL TARGET
(2025)
NATIONAL TARGET 2025ACTUAL FUEL MIX (2014)
56,06%
10,47%
24,89%
8,58%
200 TWh
562 TWh
ACTUAL FUEL MIX (2015) NATIONAL TARGET 2026
ENERGY MIX FOR
POWER GENERATIONS (RUPTL PT PLN (PERSERO) 2017-2026)
DITJEN GATRIK
KEMENTERIAN ESDM14
GOVERNMENT POLICY ON THE SELECTION OF ELECTRICITY FUEL TYPE AND TECHNOLOGY(Source : Draft RUKN 2015-2034)
The policy objective is to meet the electricity demand and improve security of electricity
supplies through adequate installed capacity for reserve margin
• CFPP : Indonesia will continue to develop coal fired power plants to
serve the baseload electricity demand. It will mainly focus on the
utilization of clean coal technology for new power plants in the Java-Bali
and Sumatera power grids.
• GAS-TURBINE PPs and Pump Storage of Hydro PPs are developed to
fulfil the electricity peak demand and reduce the oil-based power plants
operating at the peak loads.
• New Energy Sources and Renewable Power Generations are being
developed to supply electricity and meet the national targets on CO2emission reductions.
• Nuclear Power Plants are to be considered as the last option for
electricity supplies when other fuel and power plant technologies could
not meet the substantial increase of electricity demand more
economically and environmentally sustainable. Stringent electricity
safety regulations will be applied if Nuclear PPs will be developed in the
future.
Coal-fired PP
Gas-fired PP
Nuclear PP
NRE PP
Outlook of Electricity Fuel Consumptions (2017 – 2026)
Oil (kilo litres) Coal (million tons) Natural Gas (TBTU)
(SOURCE: PT PLN BUSINESS PLAN (RUPTL) 2017 – 2026)
DITJEN GATRIK
KEMENTERIAN ESDM18
POWER PLANT BUSINESS DEVELOPMENT PLAN (2017 – 2026)
MW
Source: PT PLN (Persero) Electricity Business Development Plan (2017 – 2026)
DITJEN GATRIK
KEMENTERIAN ESDM19
EFFICIENCY IMPROVEMENT STRATEGIES OF COAL POWER PLANTS IN THE RUPTL 2017 - 2026
Source: PT PLN (Persero) Electricity Business Development Plan (2017 – 2026)
Existing coal-fired power plants• Periodic refurbishment of main power plant equipment to improve power plant operation
reliability and thermal efficiency;
• Long term retirement plan of coal-fired power plants that utilize subcritical pulverizedtechnologies and substitution with more efficient technology, once they have reached theeconomic life time.
Medium term plan for new coal-fired power plants (RUPTL 2017-2026)
• The adoption of supercritical and ultra-supercritical coal power technology for large scalepower plants in the Java-Bali electric grid.
• The adoption of supercritical for coal power plants with installed capacity of 600 MW in theSumatera electric grid.
DITJEN GATRIK
KEMENTERIAN ESDM21
BUSINESS INCENTIVE FOR COAL-FIRED POWER PLANTS (ACCORDING TO THE MINISTRY OF ENERGY AND MINERAL RESOURCES NUMBER 19/2017)
Direct appointment of new power purchase agreement can beapplied to :
Mine-mouth power plants
Power plant capacity expansion in the same location of theexisting plants
The concession period for electricity purchase is calculated fromthe plant commercial operation date up to the 30 years withcapacity factor of 80% and scheme of Build, Own, Operate andTransfer (BOOT)
The commercial arrangement for transmission lines between themine-mouth power plants and the grid interconnection substationis conducted as business to business between Independent Powerproducers (IPPs) and state utility offtaker
The price of electricity purchased from the IPPs is establishedbased on the referenced costs of electricity production at thenational or regional level.
DITJEN GATRIK
KEMENTERIAN ESDM22
REFERENCE COSTS OF ELECTRICITY PRODUCTIONS(ACCORDING TO THE MINISTRY OF ENERGY AND MINERAL RESOURCES NUMBER 19/2017)
Mine-mouth PPs Regular CFPPs
Power Plant capacity All capacity >100 MW ≤100 MW
Ceiling price (BPPS ≤ BPPN)
75% BPPS BPPS BPPS
Ceiling price (BPPS > BPPN) 75% BPPN BPPN Tender or B to B
Notes: 1. BPPS is the electricity production cost at the respective regional level (Biaya Pokok Produksi
setempat)2. BPPN is the electricity production cost at the national level (Biaya Pokok Produksi nasional)
Mine-mouth coal-fired power plants according to RUPTL 2017-2026 (Total: 5,490 MW)
THE 2017 CEILING PRICE OF MINE-MOUTH COAL-FIRED POWER PLANTS
Ceiling Price| cent/kWh
BPP (National): 7.39 cent/kWh
Electricity price
75% BPP*
BPP (regional)
Mine-mouth PPs 3290 600 600 1000
6.5
1
6.5
1
6.5
1
6.5
2
6.5
4
6.6
2
7.7
7
7.8
6
8.0
7
8.1
0
9.0
4
9.2
8
10
.14
10
.20
10
.39
12
.17
12
.43
12
.75
13
.54
13
.65
13
.68
17
.32
17
.52
4.88 4.88 4.89 4.91 4.975.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54 5.54
BPP Nasional: 7.39 cent/kWh
Electricity price
100% BPP*
BPP setempat
Ceiling Price| cent/kWh
6.5
1
6.5
1
6.5
1
6.5
2
6.5
4
6.6
2
7.7
7
7.8
6
8.0
7
8.1
0
9.0
4
9.2
8
10
.14
10
.20
10
.39
12
.17
12
.43
12
.75
13
.54
13
.65
13
.68
17
.32
17
.52
6.51 6.51 6.51 6.52 6.54 6.62
7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39 7.39
Non Mine Mouth 2,400 200 600 400 600 100 200
THE 2017 CEILING PRICE OF NON-MINE-MOUTH COAL-FIRED POWER PLANTS
Non-Mine-mouth coal-fired power plants according to RUPTL 2017-2026 (Total: 4,500 MW)
FRAMEWORK OF ELECTRICITY SAFETY REGULATIONS
Every electrical installations
must obtain the electrical
installation-worthy certificates
Every service providers in
electricity business must
obtain relevant certificates
for electricity service
providers
Every people working in
electrical industry must
hold relevant certificate of
personal competencies
Every electrical equipment
and appliances must meet
mandatory of the National
Standard of Indonesia
All electricity business shallcomply with electricity safetyregulations
All electricity business must meet the mandatory requirements concerning environmental sustainability
MINISTRY REGULATION FOR THERMAL POWER EFFICIENCY TEST
Fuel consumption test that is measured in the Nett Plant Heat Rate (NPHR) is conducted
as a pre-requisite before a coal-fired power plants can commence commercial
operation
(ACCORDING TO THE MINISTRY OF ENERGY AND MINERAL RESOURCES NUMBER 10/2016)
EMISSION REGULATION - CFPP (National and Local Level)
Ministry of Environment and Forestry
(MEF)
• Law No. 32 Year 2009 Regarding The Protectionand Management of Environment
• Government Regulation No. 27 Year 2012 Regarding Environmental license
• Government Regulation No. 41 Year 1999 Regarding Air Emission Control
• Ministry of Environment Decree No. 21 Year 2008 Regarding Static Emission Sources Quality Standard for business and/or activities of a Thermal Power Plant
Ministry Of Energy And Mineral Resources
(MEMR)
• Law No. 30 Year 2009 Regarding Electricity
• Government Regulation No. 14 Year 2012 Regarding Business Of Electricity Supply
• Ministry of Energy and Mineral Resources Decree No. 10 Year 2016 Regarding Procedures for Accreditation and Certification of Electricity
Local goverment level:• May set emission quality standards with the provisions of the same or more stringent than the
standard that has been set nationally;• May set additional emission parameters after the approval of the Minister in the environmental field.
Environmental Licence
Administrative
Technical
Environmental
Law 32 Year 2009
Environmental Licenses
Law 30 Year 2009
Business Licence for Electricity or Operation Licence for Electricity
Environmental Licenses
Preparing the Environmental Impact Analysis (EIA) or
Environmental Management and Monitoring Scheme -
EMMS
Assessment
Application andissuance of
Environmental licenses (based on
EIA or EMMSapproval)
Environmental licence issued by :• Regent/Mayor
• The Installation is located in the regent/city ;• Governor
• The installation is located in the province, where the regent/city is not able to conduct environmental licensing.
• Minister• The instalastion is located in protected area
(ex. : protected forest)
REGULATED POLLUTANTS – AIR EMISSION FROM CFPP
7
No. Parameter
Maximum level (mg/Nm3)
A B
1. Sulfur Dioxide (SO2) 750 750
2. Nitrogen Oxide (NOx) stated as NO2 850 750
3. Total Particulate 150 100
4. Opacity 20% 20%
A. For CFPPs that commenced operation before 1 December 2008;B. For CFPPs that commenced operation after 1 December 2008.
Notes:o Gas volume is measured under standard condition (25o C and 1 atm).o Opacity is used as a practical indicator for monitoring.o All parameters corrected by O2 : 7 %o For CFPP with CEMS installed, the imposition of emission quality standard is
for 95 % of normal operation time for 3 months.
DITJEN GATRIK
KEMENTERIAN ESDM31
CONCLUSSION OF THIS PRESENTATION
Coal will continue to be utilized for generating electricity over
the medium term period although its share to the total energy
mix will be reduced
The Government of Indonesia adopts clean coal power
technology to reduce carbon emissions from electricity
generations while it improves thermal efficiency of the power
plants
The Government of Indonesia introduces ministry regulations
to improve business process of coal power development for
mine-mouth and regular coal-fired power plants
All coal power plants must comply with electricity safety
regulations and environmental standards