THE CLEAN ENERGY POLICY IN INDONESIAAction Plan of “Utilization of Biomass for Power Plant”

DjokoWinarnoVice Chairman of Indonesian Renewable Energy Society

The German-Indonesian Renewable Energy DaysOctober 24th-26th, 2011 – Inter Continental Mid Plaza Hotel, Jakarta

POLICY AND REGULATION

EXISTING POLICIES AND REGULATIONS

1. Energy Law (Law No. 30/2007)

2. Geothermal Law (Law No. 27/2003)

3. Electricity Law No.30/2009

4. Government Regulation on energy efficiency and conservation No. 10/2010

5. Geothermal Businees (Government Regulation No. 59/2007)

6. Green Energy Policy (Ministerial Decree: No. 0002/2004)

7. Supply and Utilization of Biofuel (Presidential Instruction No. 1/2006)

8. Regulation on Electricity Supply and Utilization (Government Regulation No.03/2005)

9. Medium Scale Power Generation Using Renewable Energy (Ministerial RegulationNo. 002/2006)

10. Power Price Purchase Guidance (Ministerial Regulation No. 5/2009)

11. Clean technology for 10.000 MW 2 nd phase (Ministerial degree No. 14/2009)

12. Draft Presidential Degree for Road Map for CO2 Emission reduction.

Pay attention on renewable energy development andEnergy Efficiency, as well as regulates such as:

Government and local government should increased theutilization of renewable energy;

Government and local government should provide incentives forrenewable energy developers for certain period of time.

Energy Law

(Law No. 30/2007)

State Electricity Company (PT. PLN) is not the only onehaving Authority for supplying electricity to people.Inviting private to participate for energy supply.

More liberalize the electricity business

High priority to use renewable energy and cleantechnology

Electricity Law

(Law No. 30/2010)

Geothermal Law

(Law No. 27/2003)

To regulate the management and development of geothermalresources for direct and indirect utilization

– Government shares upstream risk.

Government Regulation No. 59/2007 on Geothermal Enterprises

– To provide conducive business climate of geothermal development,which is fair and transparant

– To secure the business in which the government determines thebuyer and ceiling electricity price prior to the development

Presidential Regulation No. 5 Year 2006on National Energy Policy

Target in 2025

1. Less than 1 for energy elasticity

2. Optimized primary energy mix

Coal

33%

Oil

20%

Natural gas

30%

Liquefied coal

2%

Biofuel

5%

Geothermal

5%

Other NRE

5%

New Renewable energy

17%

(New Renewable Energy shares at least 17%)

Coal , 33%

Gas, 30%

Oil,

20%

Biofuel, 5%

Geothermal, 5%

Biomass, Nuclear, Hydro

Solar Energy, Wind

Power, 5%

Coal Liquefaction

2%

RE,17%

Natural Gas,

28.57%

Coal, 15.34%

Oil

51.66%

Geothermal,

1.32%

Hydro Power,

3.11%

ENERGI MIX GOAL 2025

OPTIMIZING

ENERGY

MANAGEMENT

National (Primary) Energy Mix

National (Primary) Energy Mix of 2025

(BaU Scenario) Energy Mix Year 2025

(Perpres No. 5/2006)

PRESIDENTIAL REGULATION NO. 5 YEAR 2006

NATIONAL ENERGY POLICY

Gas, 20.6%

Coal 34.6%

Oil,

41.7%

Geothermal,

1.1%

Mini/micro Hydro Power Plant, 0.1%

Power Plant, 1.9%

National Energy Mix 2025

(Presidential Decree Scenario)

8

Green Energy Policy (Ministerial Decree: No. 0002/2004)

Renewable Energy and Conservation

Energy Development Policy:

Green Energy Policy:

• Implementing the maximum utilization of renewable energy

• Efficient utilization of energy

• Public awareness in energy efficiency

Unilateraland International Support

NATIONAL ACTION PLAN

President Commitment G-20 Pittsburgh and COP15

To reduce te GHG Emission in 2020

26%

15%

Unilateral 26%

41%

Scenario of 2020 GHG Emission Reduction

Forestry 14%

Energy 6%

MSW 6%

2011/10/27 11

NO

NON FOSSIL ENERGYRESOURCES

(SD)

INSTALLED CAPACITY (KT)

RATIO KT/SD(%)

1 2 3 4 5 = 4/3

1 Hydro 75,670 MW 4,200 MW 5.55

2 Geothermal 28,53 GW 1,189 MW 4.2

3 Mini/Micro Hydro 500 MW 86.1 MW 17.56

4 Biomass 49,810 MW 445 MW 0.89

5 Solar Energy 4.80 kWh/m2/day 14.1 MW -

6 Wind Energy 3 – 6 m/s 1.4 MW 0.015

7 Uranium

3.000 MW

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

30 MW

1.00

*) only in Kalan – West Kalimantan

No

FOSSIL ENERGYRESOURCE

S(SD)

RESERVES(CAD)

RATIO SD/CA

D(%)

PRODUCTION

(PROD)

RASIO CAD/PR

OD(YEAR)*)

1 2 3 4 5 = 4/3 6 7 = 4/6

1 Oil (billion barrel) 56.6 7.99 **) 14 0.346 23

2 Gas (TSCF) 334.5 159.64 51 2.9 55

3 Coal (billion ton) 104.8 20.98 18 0.254 83

4Coal Bed Methane/CBM (TSCF)

453 - - - -

*) With assumption no new resource discovered

ENERGY RESERVES AND PRODUCTION

About 4.000 unit (51%) of Diesel Power Plant in Indonesia with 2.800MW capacity are using HSD fuel.

PT. PLN (State Electricity Company) planned to reduce HSD consumption in Diesel Power Plant.

BIOMASS Technology has been launched commercially and able to produce heat energy used by steam boiler.

BIOMASS utilization as renewable energy has been proven well.

BIOMASS resources could be obtained easily in and it stock is huge.

It low operational cost could help the government to reduce the budget for fuel subsidy.

POTENTION

BIOMASS POTENTIAL FOR ELECTRICITY

13

No CityPopulation

Municipal Waste Potential Municipal Waste Location

(Person) (ton/day)

1 DKI Jakarta 9.703.000 8.733 Bandar Gebang, Sumur Batu

2 Batam 636.729 450 Telaga Punggur

3 Kota Semarang 1.495.000 1.345 Jatibarang

4 Kota Palembang 1.301.000 1.171 Sukawinata, Karya Jaya

5 Kota Surabaya 2.847.000 2.562 Benowo

6 Kota Padang 758 682 Air Dingin

7 Kota Pontianak 490 340 Batu Layang

8 Kota Medan 2.014.000 1.812 Namo Bintang, Terjun

9 Kota Bogor 3.600.000 3.24 Galuga

10 Kota Malang 846 761 Supit Urang

11 Kota Depok 1.352.000 1.217 Cipayung

12 Kota Jogya, Sleman, Bantu 2.408.000 2Ngablak-Piyung

13 Kota Jambi 437.17 100 TalangGulo

14 Kota Samarinda 550 400 Bukit Pinang

15 Kab. Bogor 3.600.000 3.24 Pondok Rajeg

16 Kab. Tangerang 3.048.000 2.743 Jatiwaringin

17 Kota Sukabumi 2.210.000 1.989 Cigundul

18 Kab. Garut 2.050.000 1.844 Basir Bajing

Municipal Waste Potential for Power Plant….1)

14

Source: Dit. General of New Renewable Energy & Energy Conservation

No CityPopulation

Municipal Waste

Potential Municipal Waste Location

(Person) (ton/day)19 Bali 1.896.000 445 Sarbagita Singaraja

20 Kota Madiun 679.841 612 Winongo

21 Kab. Jember 2.346.000 2.112 Pakusari

22 Kab. Cianjur 1.958.000 1.762 Pasir Sembung, Pasir Bungur

23 Kab. Malang 2.469.000 2.222 Talang Agung, Randu Agung

24 Kab. Sidoarjo 1.742.000 1.568 Desa Kupang

25 Kota Balikpapan 495.314 400 Manggar

26 Kab. Banyuwangi 1.670.000 1.503 Bulusan, Rogojambi

27 Kota Bandung 2.349.000 2.114 LeuwiGajah

28 Kota & Kab. Tegal 3.910.000 3.519 Sarimukti

29 Kota & Kab. Cirebon 2.236.000 2.012

30 Kota Tangerang 1.502.000 1.352 Rawakucing

31 Surakarta, Klaten & Boyolali 2.719.000 2.447

32 Kota & Kab. Tegal 1.650.000 1.485

33 Kota & Kab. Pasuruan 1.350.000 1.215

34 Kota & Kab. Probolinggo 1.450.000 1.3

35 Kota & Kab. Kediri 1.360.000 1.224

36 Kota Pakanbaru 670 603

37 Kota Bandar Lampung 782 703

38 Kota Makasar 1.143.000 1029

Municipal Waste Potential for Power Plant….2)

15

Source: Dit. General of New Renewable Energy & Energy Conservation

METI 16

NO PROVINCE KBR/UNIT 1 KBR Total Ha

1 Nangroe Aceh D 550 125 68,750

2 North Sumatera 775 125 96,875

3 West Sumatera 306 125 38,250

4 Riau 148 125 18,500

5 Riau Islands 60 125 7,500

6 Jambi 182 125 22,750

7 Bengkulu 268 125 33,500

8 South Sumatera 325 125 40,625

9 Bangka Belitung 58 125 7,250

10 Lampung 448 125 56,000

11 Banten 93 125 11,625

12 DKI Jakarta - 125 125

13 West Java 355 125 44,375

14 Central Java 564 125 70,500

15 DI Yogyakarta 85 125 10,625

16 East Java 827 125 103,375

17 West Kalimantan 393 125 49,125

18 Central Kalimantan 144 125 18,000

19 South Kalimantan 338 125 42,250

20 East Kalimantan 251 125 31,375

21 North Sulawesi 296 125 37,000

22 Gorontalo 127 125 15,875

23 Central Sulawesi 214 125 26,750

24 West Sulawesi 195 125 24,375

25 South East Sulawesi 349 125 43,625

26 South Sulawesi 659 125 82,375

27 Bali 110 125 13,750

28 NTB 292 125 36,500

29 NTT 963 125 120,375

30 Maluku 152 125 19,000

31 North Maluku 158 125 19,750

32 West Papua 123 125 15,375

33 Papua 192 125 24,000

10000 1,250,125

NO PROVINCE KBR/UNIT 1 KBR Total Ha

1 BILLION TREES PLANTING PROGRAMBY FOREST MINISTRY

RESOURCES PROGRAM WOODCHIP

2011/10/27 17

SPV COMPANY

INVESTOR LOCAL & FOREIGN

State Power Plant

PEMDA

EPC Company

Plantation and O&M Co.

PPA

Business Scheme

Various Biomass Fuel Consumption using Full Condensing Turbine

1000

900

800

700

600

500

400

300

200

100

0

FU

EL

CO

NS

UM

PT

ION

( T

ON

/

24H )

5 10 15 20

GENERATING OUTPUT ( MW )

720

247

477

706

938

167

322

477

633

150

290

429

571

EFB

Bagasse

Wood

Husk

Bagasse

Wood

Husk

EFB

360

Eucafuel Co. Ltd.

LABORATORY

REPORT

FOR

LEUCAENA

LEUCOCEPHALA

BIOMASS FUEL

Main fuel : Leucaena Leucocephala

Calorific Value : 12,000 – 14,000 kJ/kg

Plantation Area : 2000 Hectare to support

10 MW Power Plant

Production capacity : 90 ton/Hectare/year

Current Market Price : USD 15-25/ton

(USD 1.37 MMbtu)

METI 21

LEUCAENA TREE LOG ROAD SHOW PROMOTION

Harvesting

LEUCAENA TREE LOG

Wood Log before Shredder Shredded Wood Chip on Load to Truck

Shredded Woodchips Processing and Management of Biomass Fuel

Weighing of Payload

Biomass Woodchip Storage Yard

PLANT BIOMASS

Biomass Power Plant Process Scheme

Key Success Factor

2011/10/27 27

Waste Challenges

1. High intensive investment cost• Reception

• Separation

• Material Handling

• Processing

2. Low Energy prices to recover the investment

3. High risk of social conflict

Municipal Waste Processing

OrganicMaterial

Inorganic Material

MSW

AnaerobicProcess

AerobicProcess

Combustion

SeparationTipping Fees income

And/ or

Process of MSW

2. Minimum tipping fee for municipal Solid waste is IDR 100 K /metric ton

2011/10/27 32

Go Green Indonesia !

THANK YOU