BUSINESS AND SOCIETY SUPPORT FOR RENEWABLE ENERGY DEVELOPMENT

Erwin S. Sadirsan APEC Conference on Clean, renewable & sustainability use of energy

Ayodya resort Bali hotel

September 30th – October 2nd 2013

OUTLINE

RE for Energy Security Investment opportunity

Technology options

Green Economics

Strategy to achieve 25/25 vision : KEN

The role of industry player : Certainty, clarity

Lesson Learnt : No re invent the wheel

Leadership : One command for sustainable energy

summary

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2

3

4

5

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Renewable Energy : Investment opportunity

Size of Company :

Complexity, Bureaucracy ,

Risk Management

Porter : O, T, S, W

Financial access

Medium enterprises

Small enterprises

Big companies 1

2

3

4

Renewable Energy : Technology Options

1. Geothermal

2. Biomass

3. Others :Wind, PV, Ocean

Indonesia Geothermal Potential

Indonesia Geothermal Potential : 28.543 MW 40% of world geothermal potential . Indonesia is the number 3 country after Philippine and USA.

Sumber: PT. PERTAMINA Geothermal Energi

Time Frame of Geothermal

INVENTORY WKP

EKSPLORASI

EKSPLOITASI

EPC

FEED

COD

• AMDAL / UKL / UPL • Izin Lokasi • Izin penggunaan lahan untuk

kegiatan Eksplorasi – Kemenhut

• SIPPA • IMB

PROSES HEAD OF AGREEMENT PROSES NEGOSIASI HARGA UAP / LISTRIK

NOTICE OF RESORCES CONFIRMATION Notice Of Intend to Develop

• AMDAL • Izin Lokasi • Izin Pinjam Pakai Lahan • SIPPA • IMB

2-3 Tahun 3-5 Tahun

Page 6

PERIZINAN..... TAHUN ??? PERIZINAN..... TAHUN ???

Sumber: PT. PERTAMINA Geothermal Energi

RE: Technology Options (2)

NO RE Potency

(SD) Capacity (KT)

RATIO KT/SD (%)

1 2 3 4 5 = 4/3

1 hydro 75,670 MW 5,705.29 MW 7.54

2 geothermal 29,038 MW 1,189 MW 4.00

3 Mini/Micro Hydro 769.69 MW 217.89 MW 28.31

4 Biomass 49,810 MW 1,618.40 MW 3.25

5 PV 4.80 kWh/m2/day 13.5 MW -

6 wind 3 – 6 m/s 1.87 MW -

7 Uranium 3.000 MW

(e.q. 24,112 ton) for 11 years*) 30 MW 1.00

*) Kalan – West Kalimantan

Sumber: Kementerian ESDM-Ditjen EBTKE

Renewable Energy : Green Economics

Definition

Profit versus sustainability of energy

CDM, Climate Change

Feed in Tariff

Economics values : IRR, PBP, NPV

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2

3

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5

power 2007 2020 2030

Biogas 55 – 215 50 – 200 50 – 190

Biomassa solid 80 – 195 85 – 200 85 – 205

PV 520 – 880 270 – 460 170 – 300

Wind – onshore 75 – 110 55 – 90 50 – 85

Wind - offshore 85 – 140 65 – 115 50 – 95

Hydro small 60 – 185 55 – 160 50 – 145

Hydro big 35 – 145 30 – 140 30 – 130

Nuclear 50 – 85 45 – 80 45 – 80

Gas (PLTGU) 50 – 60 65 – 75 70 – 80

Coal (powder) 40 – 50 65 – 80 65 – 80 Source : : Komisi Eropa (2008), Canton dan Linden (2010); Dr. Tatang Hernas S.

9

Power Generation Cost ( 2005/MWh)

Strategy 25/25 vision

Energy Mix KEN

Vision 25/25

New KEN

Act Now ! How ?

Supply- Demand Theory

The devils are in the details

Kadin will support by the RE Task Force

Batubara, 34.6%

Gas Bumi, 20.6%

Minyak Bumi, 41.7%

EBT, 3.1%

Batubara, 33%

Gas Bumi, 30%

Minyak Bumi, 20%

EBT, 17%

, 0.0%

Batubara; 32%

Gas Bumi; 23%

Minyak Bumi; 20%

EBT; 25%

Strategy (2)

21 %

30,7

%

43,9%

4,4 %

EBT

Gas Bumi

Batubara

M. Bumi

2010

*

2015 2020

2025

KONSERVASI

ENERGI

(37,25%)

DIV

ER

SIF

IKA

SI

EN

ER

GI

BAU** PERPRES 5/2006 VISI 25/25

25

%

32

%

1131,3 SBM

20

%

23

% 41.7%

20,6%

34.6%

3,1%

5100 SBM

3200 SBM

3200 SBM

11

Sumber: *DEN, **Blueprint PEN 2006-2025

Batubara, 30.7%

Gas Bumi, 21.0%

Minyak Bumi, 43.9%

EBT, 4.4%

Kementerian Energi dan Sumber Daya Mineral

Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi

© EBTKE KESDM - 2010

Rencana Induk

Konservasi

Energi Nasional

(RIKEN)

Rencana Induk

Diversifikasi

Energi Nasional

(RIDEN)

Rencana Induk

Pengembangan

dan Pemanfaatan

Energi Baru dan

Terbarukan

(RIPPEBAT)

Rencana Induk

“Rasionalisasi”

Energi Tak

Terbarukan

KEBIJAKAN ENERGI SEKTORAL

Kebijakan Energi Sektor Rumah Tangga

Kebijakan Energi Sektor Bangunan

Komersial

Kebijakan Energi Sektor Transportasi

Kebijakan Energi Sektor Industri

KEBIJAKAN KLASTERAL*

Energi Baru

Kebijakan Energi Klaster Nuklir

Kebijakan Energi Klaster Panas Bumi

Energi Terbarukan

Kebijakan Energi Klaster CBM

Kebijakan Energi Klaster Gasified Coal

Kebijakan Energi Klaster Liquified Coal

Kebijakan Energi Klaster Hidrogen

Kebijakan Energi Klaster Hidro

Kebijakan Energi Klaster Bioenergi

Kebijakan Energi Klaster Energi Surya

Kebijakan Energi Klaster Energi Angin

Kebijakan Energi Klaster Samudera

Kebijakan Energi Klaster Minyak Bumi

Kebijakan Energi Klaster Gas Bumi

Kebijakan Energi Klaster Batubara

Visi

Energi

Baru

Terbarukan

25/25

*Klaster sesuai dg UU 30/2007 ttg Energi

Energi Tak Terbarukan

Sis

i kebutu

han

Sis

i Penyedia

an

METI

Lesson Learnt : No re invent the wheel

1. Constraint a. Bureaucracy b. Business to Business (Require more Government

Support) c. Cultures and Etiquettes d. Business as Usual

2. Proposal : a. Business Partnership Forum b. Joint Road Show c. Routine Business Meeting d. Security Assurance e. Business development Incentives (tax holiday,

investment credit, etc)

Leadership : One command for sustainable energy

• KEN

• Coordination

• Leadership

• Stake Holder’s support

• Regulatory framework, especially implementing

regulation of Law no 30/2007 and propose new

Bill (RUU) of Renewable Energy

• Do Not re invent the wheel, adopt relevant best

practices

• Gradually remove fossil fuel subsidies

undermine the competitiveness of renewables.

Summary One command for sustainable energy