existing and new bio energy policies needed and ... · subtotal biomass 37.05 81.51 133.38 288.99...

Existing and New Bio Energy Policies Needed and Implementation Target

Ministry of Energy and Mineral Resources of The Republic of Indonesia Directorate General of New Renewable Energy and Energy Conservation

Delivered by: DR. DADAN KUSDIANA

Director for Bioenergy

Indonesia EBTKE Conference and Exhibition 2013

Jakarta Convention Centre, Jakarta, 22 of August 2013

I.  BACKGROUNDS 3

II.  POLICY AND REGULATION ON BIOENERGY

5

III.  ISSUES ON BIOENERGY 8

IV.  PROGRAMS ON BIOENERGY 11

V.  CONCLUDING REMARKS 12

Energy and Mineral Resources for The People’s Welfare 3

1.  Various products, for fuel, heat and electricity. Bioenergy can be directly utilized in energy conversion systems/existing equipment (biomass on power plant, biofuel in vehicles).

2.  The fuel from bioenergy can be utilized in liquid, gas and solid form; always continue to adapt to the needs.

3.  Bioenergy technology continues to be developed, not only to increase efficiency/productivity but also produces other types of new energy final.

4.  Bioenergy products continue to be developed, such as pellets, DME, biomethanol, refused derived fuel (RDF), biobuthanol, biooil, green jet oil, green diesel, bioavtur, etc.

5.  Directly involvement of the community (pro-growth, pro-job, pro-poor).


JUTA SBM Energi Total 2010 2015 2020 2025 2030 2040 2050

1,178.19 1,593.15 2,148.90 2,815.80 3,556.80 5,483.40 7,261.80

Biomass BBN 37.05 74.10 111.15 222.30 296.40 518.70 703.95

Biomass Sampah (Listrik) - 7.41 22.23 66.69 148.20 296.40 407.55

Panas Bumi 22.23 66.69 111.15 222.30 296.40 481.65 629.85

Energi Air 7.41 14.82 37.05 81.51 111.15 148.20 177.84

Energi Laut - - 3.71 7.41 10.37 22.23 37.05

Energi Matahari - 3.71 14.82 29.64 44.46 103.74 133.38

ET Lainnya - 1.48 7.41 11.12 14.82 29.64 37.05

Minyak 585.39 615.03 629.85 666.90 689.13 926.25 1,200.42

Gas 237.12 311.22 407.55 555.75 666.90 889.20 1,037.40

Batubara 288.99 496.47 792.87 866.97 1,104.09 1,645.02 2,156.31

Energi baru (nuklir dan Lainnya) - - 14.82 88.92 177.84 444.60 741.00 Subtotal Biomass 37.05 81.51 133.38 288.99 444.60 815.10 1,111.50 Subtotal ET Non Biomass 29.64 88.92 177.84 355.68 474.24 785.46 1,015.17 Subtotal ET 66.69 170.43 311.22 644.67 918.84 1,600.56 2,126.67 Total EBT 66.69 170.43 326.04 733.59 1,096.68 2,045.16 2,867.67 Sumber: Draft Kebijakan Energi Nasional, DEN 2012

Produksi Bioenergi diproyeksikan melebihi total produksi EBT lainnya pada tahun 2040


i.  Provision of bioenergy in the form of final energy can be liquid, gas, solid, and electricity. ii.  Bioenergy in liquid form which is called the Biofuel consisting of biodiesel, ethanol, and pure

vegetable oil that can be used as a substitute for fuel oil. iii.  Bioenergy in the form of gas/biogas that can be used as fuel for stoves and power plants. iv.  Bioenergy in the form of a solid consist of briquettes or pellets. v.  Bioenergy can also be converted into electricity by using biofuels, biogas, and gasification.

Bio-Refinery Distribution

Distribution

Distribution

Integrated Generator

BIOENERGY CONVERSION INSTALLATION

• Bio-Gassification • Anaerob Digestion

1.  Biodiesel 2.  Bioethanol 3.  Biooil

Biogas

Bio-Briquettes/Pellet

Electricity

Bio-Briquettes

Bio-Cook Stove


Law No. 30 Year 2007 concerning on Energy

Presidential Regulation No. 5 Year 2006 concerning on National Energy Policy

Presidential Instruction No. 1 Year 2006 concerning on Provision and Utilization, of Biofuel as Other

Fuel

Ministry of Energy And Mineral Resources Regulation No. 32 Year 2008

concerning on Provision, Utilization, and Procedures of Commerce of Biofuel as Other Fuel

Priority supply and use of renewable energy, one of them is bioenergy.

Biofuel target 5% by 2025 from the national energy mix.

Mandatory of biofuel utilization roadmap (biodiesel, bioethanol, and biooil) in transportation, industry, commercial, and electricity generation sector,

Instructions related to the Minister, Governor and Mayor to take action in order to accelerate the provision and utilization of biofuel;

Ministry of Energy And Mineral Resources Regulation No. 4 Year 2012 and No. 19 Year 2013

Electricity Price (Feed-in Tariff ) for Bioenergi Based Power Plant (Biomass, Biogas, and Municipal Solid Waste)


FEED-IN TARIFF FOR BIOENERGY BASED POWER PLANT (Based on Ministry of Energy and Mineral Resources Regulation No. 4 Year 2012 and cNo. 19 Year 2013)

No. Energy Capacity Electricity Tariff Note

Medium Voltage

1. Biomassa until 10 MW Rp. 975,- / kWh X F

2. Biogas until 10 MW Rp. 975,- / kWh X F Non Municipal Solid Waste

3. Municipal Solid Waste (MSW) until 10 MW Rp. 1.450,- / kWh Zero waste *)

4. Municipal Solid Waste (MSW) until 10 MW Rp. 1.250,- / kWh Sanitary Landfill *)

Low Voltage

1 Biomassa until 10 MW Rp. 1.325,- / kWh X F

2 Biogas until 10 MW Rp. 1.325,- / kWh X F Non Municipal Solid Waste

3 Municipal Solid Waste (MSW) until 10 MW Rp. 1.798,- / kWh Zero waste *)

4 Municipal Solid Waste (MSW) until 10 MW Rp. 1.598,- / kWh Sanitary Landfill *)

F is an incentive factor based on the region where the power plant installed, as follows: •  Jawa, Bali, and Sumatera region : F = 1 •  Kalimantan, Sulawesi , NTB and NTT region : F = 1,2 •  Maluku and Papua region : F = 1,3


1.  Implementation of bioenergy based power plant has increase significantly since the issued of new feed-in tariff for electricity generation based on biogas, biomass, and municipal solid waste.

2.  Current capacity of bioenergy based on-grid power plant in year 2012 was 75,5 MW (including additional capacity in 2012 as much as 16,5 MW).

No Company COD Contract Location Connection region Biomass Type Contracted Capacity

(MW) 1 PT Riau Prima Energy 2001 Excess power Riau PLN Wilayah Riau palm waste 5 2 PT Listrindo Kencana 2006 IPP Bangka PLN Wilayah Bangka Palm waste 5 3 PT Growth Sumatra 2006 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 6 4 PT Indah Kiat Pulp & Paper 2006 Excess power Riau PLN Wilayah Riau palm waste 2 7 PT Belitung Energy 2010 IPP Belitung PLN Wilayah Babel Palm waste 7 8 PT Growth Sumatra 2010 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 9 9 PT Pelita Agung 2010 Excess power Riau PLN Wilayah Riau Palm waste 5

10 Permata Hijau Sawit 2010 Excess power Riau PLN Wilayah Riau Palm waste 2 11 PT Navigat Organic 2011 IPP Bali PLN Dist Bali MSW 2 12 PT Navigat Organic 2011 IPP Bekasi PLN Dist Jabar MSW 6 13 PT Growth Asia 2011 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10 14 PT Growth Asia 2012 Excess power Sumatera Utara PLN Wilayah Sumut Palm waste 10 15 PT Navigat Organic 2012 IPP Bekasi PLN Dist Jabar MSW 6,5

TOTAL ON-GRID CAPACITY 75,5


BIOFUEL USAGE MANDATORY ROADMAP (Based on Ministry of Energy and Mineral Resources Regulation No. 32 Year 2008)

BIODIESEL (Minimum)

Sektor 2008 2009 2010 2015 2020 2025 Transportation, PSO 1% (Existing) 1% 2.5% 5% 10% 20% Transportation, Non PSO

1% 3% 7% 10% 20%

Industry 2.5% 2.5% 5% 10% 15% 20% Electricity Generation 0.1% 0.25% 1% 10% 15% 20%

BIOETHANOL (Minimum)

Sektor 2008 2009 2010 2015 2020 2025 Transportation, PSO 3% (Existing) 1% 3% 5% 10% 15% Transportation, Non PSO

5% (Existing) 5% 7% 10% 12% 15%

Industry 5% 7% 10% 12% 15%

Energy and Mineral Resources for The People’s Welfare

1.  Increasing the blending percentage for biodiesel, from currently 7,5% to be 10% in 2014.

2.  Mandatory of biodiesel implementation on industrial sector faces many obstacles from industries, in particular from the heavy equipment providers.

3.  No implementation for bioethanol because Market Price Index which is representing the price of regional bioethanol is not interesting (to low) for domestic bioethanol producers.

4.  Conflicts between food vs energy for bioethanol production still exist. It is necessary to develop second generation of biofuel.

5.  Utilization of biofuel in electricity generation, this year is targetted for 30,000 KL.

BIOFUEL IMPLEMENTATION UPDATES


CURRENT NATIONAL BIOFUEL PRODUCTION

*) Note: update August 11, 2013


a.  Domestic utilization:

Currently there is more than 9,500 unit of biogas digester are installed to meet domestic needs (cooking and lighting). The program is implemented both on semi and non-commercial approaches by the Government and also under the partnership with donors and international NGO;

b.   Commercial/industry sector:

Biogas program is implemented through the commercial basis. The biogas unit system is built in a large scale, usually to generate an electricity; such as electricity power plant in the palm oil mills. Biogas is produced from palm oil mill effluent (POME).


1.  Provision of the sustainable bioenergy feedstock. 2.  Increasing trend of the export of biomass wastes. 3.  Availability of transmission network/national grid 4.  Bioenergy utilization in existing power plants. 5.  Business regulation on non liquid bioenergy facility. 6.  Pricing policy for bioenergy.


1.  Increasing and expanding the mandatory implementation of biofuel in all sectors

2.  Utilisation of biomass on existing power generation 3.  Regulating waste/biomassa for export purposes 4.  Development of integrated bioenergy production facility with

dedicated feedstocks 5.  Allocating special fund for implementation by local government

as energy access program.


BIOFUEL (BBN) BUSINESS

PRICING MECHANISM

Government set the biofuel price from

producers to off taker

Market Price Indeks for Liquid Biofuel that blended with specific fuel

Feed-in Tariff for gas/solid biofuel based power plant

SPECIFICATION STANDARD

Government set the specification standard for biofuel that sales domestically

BUSINESS PERMIT

Biofuel Business Permit

MONITORING AND EVALUATION

For Biofuel Industry that doing biofuel business

For Fuel Industry that using biofuel blended with gasoline

For power/electricity producer that using solid biofuel for electricity generation

For Individual and self sufficient energy village that produce biofuel

REVISED SCOPE OF REGULATION ON BIOENERGY BUSINESS as in Permen ESDM No. 32 Tahun 2008


1.  Program on Biofuel 2.  Program on Biogas 3.  Progam on Biomass for Electricity 4.  Program on Clean Stove 5.  Program on (Bio) Hydrogen 6.  Program Energy Self-Sufficient Village 7.  Program on Iconic Island for Renewable Energy


1.  As part of national energy policy, the utilization of bioenergy will be continuously implemented and improved in order to strengthen national energy security as well as reducing national emission reduction.

2.  Development of bioenergy will reduce the use and impor of fossil fuel and give positive impact to economic condition.

3.  Policy and regulation on bioenergy has been available and it will continuously to be developed to encourage the use of bioenergy.

4.  The Government togheter with all stakeholder will continuously support the bioenergy development.

5.  Indonesia will continue to work with other countries and international community to develop sustainable biofule industry and also global environmental issues.

JALAN PEGANGSAAN TIMUR NO. 1, MENTENG, JAKARTA 10320

Phone: +62 21 3983007 Fax: +62 21 31901087 - www.esdm.go.id - www.ebtke.esdm.go.id -

Ministry of Energy and Mineral Resources of The Republic of Indonesia Directorate General of New Renewable Energy and Energy Conservation


1.  Indonesia energy demand in one decade until this several year still filled by fossil energy.

2.  Now Indonesia is net oil importer. Higher demand for energy/fossil fuel and decreases of domestic oil production will cause the higher of oil import and higher trade deficit.

3.  Utilization of bioenergy produced locally from local resources is fastest step to reduce oil dependency.

1.  Increasing income 2.  Emission reduction 3.  Poverty reduction

1.  Trade deficit 2.  Budget deficit 3.  Energy deficit

Oil Import Bioenergy


�  Implementation of biofuel in the transportation sector

�  Increase blending for biodiesel in PSO �  Introduce bioethanol for �  Implementation of biofuel in electricity production �  Implemen

20


2.  Utilization biofuel currently has carried on: a.  Transportation sector (B-7.5), b.  Industrial sector (B-2 in subsector mineral and coal mining industries) and will be extended to

other industrial sub-sectors is gradually c.  Electricity generation sector.

3.  In 2013 the target of biofuel utilization in the transportation sector will be increased to B-10. Current Realization of Biofuel Mandatory

Note: *) Percentage of Biodiesel blended to gasoline is 7.5% start from February 15, 2012; **)update August 11, 2013; since 2010 there is no realization for bioethanol

BIODIESEL 2011 (KL) 2012 (KL)*) 2013 (KL)**)

Mandatory 1,297,000 1,641,000 2,017,000 Mandatory on Transportation PSO 590,650 694,440 1,202,250 Realization 358,812 669,398 462,297 Percentage 60.75% 96.39% 38.45%

BIOETHANOL 2011 (KL) 2012 (KL) 2013 (KL) Mandatory 694,000 968,000 1,167,000 Mandatory on Transportation PSO 229,600 244,110 153,850 Realization - - - Percentage - - -

existing and new bio energy policies needed and ... · subtotal biomass 37.05 81.51 133.38 288.99...

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