Republic Of Indonesia

SMART GRID DEVELOPMENT POLICY IN INDONESIA

COORDINATING MINISTRY FOR ECONOMIC AFFARS

Hanoi, 2 April 2013

What is a Smart Grid?

The smart grid will be characterized by 

• A two‐way flow of electricity and information to create an automated, widely distributed energy delivery network. 

• It incorporates into the grid the benefits of distributed computing and communications – to deliver real‐time information and 

– enable the near‐instantaneous balance of supply and demand at the device level.

What is a Smart Grid?Distinguishing characteristics of the Smart Grid cited in US‐EISA (US Energy Independence and Security Act, 2007) include:•Increased use of digital information and controls technology to improve reliability, security, and efficiency of the electric grid;•Dynamic optimization of grid operations and resources, with full cyber security;•Deployment and integration of distributed resources and generation, including renewable resources;•Development and incorporation of demand response, demand‐side resources, and energy‐efficiency resources;•Deployment of ‘‘smart’’ technologies for metering, communications concerning grid operations and status, and distribution automation;•Integration of ‘‘smart’’ appliances and consumer devices;•Deployment and integration of advanced electricity storage and peak‐shaving technologies, including plug‐in electric and hybrid electric vehicles, and thermal‐storage air conditioning;•Provision to consumers of timely information and control options;

Source: US‐NIST Framework and Roadmap for Smart Grid interoperability Standards, Release 2.0

What does the concept of What does the concept of SmartSmart--Grid look like?Grid look like?

Electrical Infrastructure

“Intelligence” Infrastructure

4Source:   Rochester Institute of Technology

Interactions of Smartgrid Actors

Source: US‐NIST Framework and Roadmap for Smart Grid interoperability Standards, Release 2.0

INDONESIA  VISION  2025

6

7

Natural Gas, 28.57%

Coal, 15.34%

Oil51.66%

Geothermal, 1.32%

Hydro Power, 3.11%

Coal , 33%

Gas, 30%

Oil, 20%

BIOFUELS, 5%

Geothermal, 5%

Biomass, Nuclear, HydroSolar Energy, Wind Power, 5%

Coal Liquefaction2%

RE,17%

CURRENT ENERGI MIX (1 million BOE) National (Primary) Energy Mix

OPTIMIZING ENERGY

MANAGEMENT

National (Primary) Energy Mix of 2025(BaU Scenario) (5 million BOE)

National Energy Mix 2025 (3 million BOE)(Presidential Decree No. 5/2006)

NATIONAL ENERGY POLICYNATIONAL ENERGY POLICY(PRESIDENTIAL DECREE NO. 5 YEAR 2006)(PRESIDENTIAL DECREE NO. 5 YEAR 2006)

Gas, 20.6%

Coal 34.6%

Oil, 41.7%

Geothermal, 1.1%

Mini/micro Hydro Power Plant, 0.1%

Power Plant, 1.9%

Target in 20251. Less than 1 for energy 

elasticity2.  Optimized primary 

energy mix

DEPUTIES DUTIES AND FUNCTIONS OF ENERGY AND MINERAL RESOURCES COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

• MAIN TASK– Prepare  coordination  and  preparation  of  Policy  Planning  and 

synchronize the implementation of policies, monitoring, analysis, and evaluation of policy implementation in energy, and mineral resources.

• FUNCTION– Preparation  of  planning  and  coordination  of  energy  policies  and 

mineral resources.

– Sync  implementation  of  energy  policies  and  mineral  resources.

– Monitoring, analysis, evaluation and  reporting of problems or policy implementation  activities  in  the  field  of  energy,  and  mineral resources.

MAIN TASK COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

. VISION : Realization agency coordination and synchronization of effective economic development.

. MISION : Improve coordination of planning and policy making, as well as synchronize the implementation of policies in the field of economy.

. GOAL : Realize the synchronization of policies for the economy and improve the effectiveness of coordination in achieving sustainable economic growth.

Indonesia Electricity Sytem

• 12 interconnected system, 70 isolated system• Installed capacity 26 GW, peak load 22 GW• Electrification ratio of 65%• Demand growth rate of 9.17%

• 240 million population• 39 million connected customers• Fuel mix 43% coal, 25% gas, 20% fuel‐oil, 

6% hydro, 6% geothermal

IB : 10,2%

21 TWh54 TWh

IT : 10,6%

11 TWh28 TWh

JB : 8,97%

115 TWh252 TWh

Projection on Consumption: 2010-2019Average Growth: 9,2 % per annum

20192010

Power System ReliabilityTrends on SAIDI & SAIFI

SAIDI

487.8

1,736.4

654.0

565.6

946.3

1,620.8

950.0950.0

622.2

200

600

1,000

1,400

1,800

2003 2004 2005 2006 2007

Men

it/Pe

lang

gan

Realisasi Sasaran

Good

SAIFI

13.85

12.68

11.78

12.5112.77

13.96

13.00 13.00

10.5710

11

12

13

14

15

2003 2004 2005 2006 2007

Kal

i/Pel

angg

an

Realisasi Sasaran

Good

SAIDI: System Average Interruptions Duration IndexSAIFI: System Average Interruptions Frequency Index

13

ROLE OF THE COORDINATING MINISTRY FOR ECONOMIC DEVELOPMENT POLICY IN SMART GRID

OPPORTUNITIES CONSTRAINTS

Strategic Environmental

Conditions Expected TARGET

POLICYAND

STRATEGY

ACTIONPROGRAM

Resulting Condition

MONITORING AND EVALUATION

• National Economic Board• National Climate Change

Council• National Research Council.• Stake Holder

National Energy Board

Coordination Planning and Policy Formulation and Implementation Synchronization

Smart Grid Development

Regulation President 24/2010 Article 24

DETERMINATION BY THE GOVERNMENTWith the approval of DPRDraft

Energy Law Article 12Presidential Regulation No. 5/2006

Recomendation

Have Problem ?

Yes

Intitutions

14

PROBLEMS MAP OF SMART GRIDPROBLEMS MAP OF SMART GRID

ACCELERATION OF THE USE OF SMART GRID POLICY

ACCELERATION OF THE USE OF SMART GRID POLICY

ACCELERATION OF THEBUSINESS SMART GRID POLICY

ACCELERATION OF THEBUSINESS SMART GRID POLICY

TECHNOLOGY SECURITY

TECHNOLOGY SECURITY

COMMUNITYAWARENESS

COMMUNITYAWARENESS

FISCAL POLICY/ENERGY PRICING

FISCAL POLICY/ENERGY PRICING

IMPROVED SUPPLY

EQUIPMENT

IMPROVED SUPPLY

EQUIPMENT

MASTERY OFTECHNOLOGY

MASTERY OFTECHNOLOGY

DIRECT & INDIRECTSUBSIDIES

DIRECT & INDIRECTSUBSIDIES

IMPROVED QUALITY GRIDIMPROVED

QUALITY GRID

IMPROVED MANAGEMENT OF ELECTRICAL

IMPROVED MANAGEMENT OF ELECTRICAL

INDUSTRIAL DEVELOPMENTINDUSTRIAL

DEVELOPMENT

SMART GRID  ‐ INDONESIAN VIEW

TODAY’s GRID Vs. TOMORROW’sToday’s Grid Smart Grid

Consumers are uniformed and non-participative with power system

Informed, involved and active consumers; demand response and distributed energy resources

Dominated by central generation: many obstacles exist for distributed energy resources interconnection

Many distributed energy resources with plug-and-play convenience:focus on renewables

Limited wholesale markets, not well integrated: limited oppurtunities for consumers

Mature, well-integrated wholesale markets, growth of new electricity markets consumers

Focus on outages: slow response to power quality issues

Power quality is a priority with a variety of quality/price options: rapid resolution of issues

Little integrationof operational data with asset management: business process silos

Greatly expanded data acquisition of grid parameters: focus on prevention, minimizing impact to consumer.

Responds to prevent further damage: focus is on protecting assets following fault

Resillient to attack and natural disasters with rapid restoration capabilities.

• Higher Customer Satisfaction: The combination of lower costs, improved reliability and better customer control will raise satisfaction among all types of customers (residential, commercial, industrial, institutional).

• Improved Reliability: Smart grid will reduce and shorten outages and improve the quality of power.

• Shorter Outages: The incorporation of advanced sensors and measurement (PMU), communication networks and smart systems will allow an unprecedented degree of system visibility and situational awareness of the electric power system. Smart grid will result in shorter outages through its “islanding” and “self‐healing” features.

• Customer Energy/Cost Savings: As pricing becomes more transparent and is aligned with the underlying economics of generation and distribution, customers’decisions to save money will benefit society as well.

• Highest Security: Security will be incorporated into the design of the smart grid and will require the implementation of practices and procedures by individual stakeholders. In this way, the physical and cyber security risks can be managed to the highest standards possible

• Timely renewable: Smart grid is the enabler of more renewable energy. Its development will allow for the timely incorporation of these sustainable sources of power in a user‐friendly, cost‐effective manner.

Benefits of a Smart Grid

Indonesian Geographic of Electricity Service Areas

• Two of main islands have own interconnected systems

• The rests are:– Clusters of service areas with main grids, including remote off‐grid distributed systems 

(Kalimantan, Sulawesi, Papua)

– Small islands: clusters of grids mainly of diesel systems, off‐grid distributed systems 

Interconnected Systems

Smart Grid – Indonesian View• Smart interconnection grids– Improved reliability– Energy savings– Robustness of operation and control (Self‐Heals)

– Etc.• Smart microgrids with distributed energy resources (DER) where applicable– Distribution systems containing high DER penetration may require considerable operational control capabilities.

Smart Interconnection Systems

• Faster Protection & Control / Self‐Heals

• More robust

• More renewable

• More efficient

• Higher Power Quality

• More MicroGrids

• Improved Capacity Factor

• More Reconfigurable

• Demand Response/Control – Smart meters for large loads at commercial and industrial facilities

Paradigm Shift in Energy SystemIncreasing penetration of renewable energy, diversification in electricity 

generations, reduction in carbon emission, etc.

Future Chalenges

A key solutionSmart MicroGrid could efficiently control integration of renewable energy to 

the main grid.

• Enhanced compatibility of electricity network with increased penetration of renewable energy 

• Communications between the network and various types of generations• Providing services for various consumers’ electricity needs, mainly in remote 

and isolated areas

Smart Microgrids and Renewable Energy Penetration –Remote, Isolated Areas

21

CHALLENGES / ENABLERSCHALLENGES ENABLERS

Communication Infrastructures* Big Cities: Available but Expensive* Small Towns: Not all available

Development of communication infrastructure

Information Technology* Limited SCADA capabilities* Smart meters only for large

consumers

SCADA ImprovementProliferation of smart meter

Non-competitive Electricity Market Opening up electricity market

Regulated Government Pricing Policies & Regulations:* Dynamic Pricing

Unsteady supply from RenewableEnergies (Micro Hydro, Solar, etc.)

Incentives for Renewable Energy

Participation from consumers difficult Incentives for Consumer Participations

Very few Smart Building applications Energy efficiency awareness

Investments are expensive Incentives for Investments

PILOT PROJECTSAGENCY FOR ASSESMENT AND 

APLICATION TECHNOLOGY (BPPT‐PLN)

Smart Microgrid on Sumba

Source : BPPT, 2013

Main Powerplant Sites

Source : BPPT, 2013

Sumba Barat Load Profile

(Waitabula+Waikabubak)Source : BPPT, 2013

Simulasi Smart Grid

Source : BPPT, 2013

Pilot Plant – Sumba Smart Microgrid with a Large PV System 

Example Scenario : Energy Control for Smart Solar in Smart Micro‐grid

Photovoltaic Batteries

Micro HydroDiesel GeneratorMaster

Controller

DieselMaster

Control System:

Battery

Max

Min

Photovoltaic

Load

Hydro

Start..!!

Other Potential Project

PWDCRB

CKP

SLO

YGA

TSK

PJO

KDR

DPS

JMBMLG

BGR

SRGCLG

TGR

CBG

CJR

JTH

TGL PKL

BYWRing SDH STM-16

Ring SDH STM-4

KLT

PTN

GLMSDH STM-16 LINKSDH STM-4 LINKSDH STM-1 LINK

SMD

KBSBJG

STB

PBOLMJ

GRTBJR RWL

MDU

PSU

NGRKPL

MKR

DKB

GNDCWG BKS

PLGPLP

PRKACL

KRT

MPGPST

GTS GBR

PLM

PDLCGR

UJB

BDC

JKT

BDG

PDH 140M LINKPDH 34M LINK

Ring PDH 140MTBL

KRPPLM

UGRSMG

KRNRing SDH STM-4

DJTSWH

PJB

WRUSBY

BGL GRI

METRONODE WITH FO EQUIPMENTNODE WITHOUT FO EQUIPMENT

JAWA & BALI BACKBONE NETWORK TOPOLOGY

Jakarta Smart City (Consist Of Many Superblock Smart Micro Grid)

Micro Grid/Gen

Micro Grid/Gen

Micro Grid/Gen

Micro Grid/Gen

Micro Grid/GenMicro Grid/Gen

Micro Grid/Gen

Micro Grid/Gen

Micro Grid/Gen

Micro Grid/GenMicro Grid/Gen

Smart GridSmart Grid

Load ManagementLoad Management

Energy Control Networking Platform

AMM+

SmartStreet Lighting

Any TCP/IPNetwork

ControlNode

SmartMetering

ControlNode

SmartGrid Optimization

ControlNode

SmartSolar

ControlNode

ControlNode

SmartBuildings

Control Nodes are either Data 

Concentrators or Edge Control Nodes

Smart Grid Vision – SummaryIndonesian vision for the future ‐ a network of integrated 

systems that can monitor and heal itself

Part of interconnection

Smart Microgrid

Thank you for your Thank you for your attentionattention……