INDONESIAN POLICIES

AND BUSINESS MODELS

FOR RURAL MINIGRIDS

ANDRE SUSANTO

OUR MISSIONEMPOWER rural communities through INNOVATION

DESIG

N

ENGAG

E

MONITO

R

MANAG

E

INNOVAT

E

LET’S TALK

MINIGRIDS

SUCCESS

FACTORS

PLANNIN

G

WHAT

KIND

FUNDIN

G

GET

SERIOUS

THE

CONSTITUTION

MINISTERIAL

REGULATION

ELECTRIC

POWER

GENERATIO

N

LICENSE

MINISTERIAL

REGULATION

Certificate of Operational Readiness

MINISTERIAL

REGULATION

MINIGRID

BUSINESS

MODELS

PLANNIN

G

WHAT

KIND

FUNDIN

G

BUSINESS IS

GOOD

2,400 unelectrified villages (December 2016)Source: Indonesian National Statistics Agency

MINI UTILITY

ANCHOR TENANT

MINI IPP

MULTI SERVICE

COMMUNITY

OWNED

LEASE TO OWN

OTHERS

PUTTING IT ALL

TOGETHER

THANK YOU

REFERENCE SLIDES

www.pt-inovasi.com

ACEF 2018 Deep Dive Workshop on Minigrids

Indonesia’s Relevant Electricity Sale Stakeholders

MEMR REGULATION

38/2016

36

1

GOVERNOR

PROPOSE TO

MINISTER OF

MEMR

THROUGH

BKPM

2

BKP

M

STIPULATIO

N FOR

BUSINESS

AREA

GOVERNOR

SELECT

BUSINESS

AREA FOR

UPTLSK

GOVERNOR

APPOINT

BUSINESS

ENTITY FOR

UPTLSK AND

ISSUE IUPTL

GOVERN

OR

3

4 5 6

DGE ON BEHALF OF MINISTER

OF MEMR ASSIGNING BUSINESS

ENTITY

DGE (Directorate

General of

Electricity)

GOVERNOR REQUEST

ASSIGNMENT BY MINISTER OF

MEMR TO SELECTED BUSINESS

ENTITY

DGE VERIFY GOVERNOR

PROPOSAL UPON BKPM

REQUEST (30 days)

7

Administrative Documents for Business Area Development:

a. Business area region, width minimum 1 (one) district;

b. Analysis on Renewable Energy Source Potential;

c. Analysis on the needs and Planning for Electricity Supply;

d. Analysis on planned-electrified households;

e. Analysis on local peoples capacity and willingness to pay;

f. Average estimation on material price, services and transportation.

8

Stipulation Mechanism of UPTLSK Business Area (Article

6-7)

NOTE: UPTLSK is Business for small scale

electricity provider or usaha penyediaan tenaga

listrik skala kecil

37

SUBSIDY

VERIFI

CATIO

N

GOVERNOR

EVALUATION

ON

IMPLEMENTA

TION

MINISTER

MEMR

Cq. BKPM

TARIFF

BPP/

PRODUCTION

COST

CONSUMER

SELECTED

COMPANY

81

2

4

7

6

3BUSINESS ENTITY

Remark:

1. The priority is renewable energy

2. The priority product goods and services from Indonesia

3. PLN tariff for 450 VA consumen

4. Ratio electrification until 95% by 5 years

5. Build the infrastructure of elctricity and has its function by

1 year from an assigment.

5

UPTLSK Scheme on Subsidized Business Area

• Law 30/2009 subject to Electricity Article 4 para (3) & Article 11 para (3).

• PP 14/2012 subject to Business of Electricity Supply Article 9 para (3).

38

• Law No. 30/2009 of Electicity.

• Government Regulation No. 14/2012 of Electricity Provision.

• MEMR Regulation No. 28/2012 of Business Area.

1EVALUATION

VERIFICATI

ON

COMPANYEMR MINISTER

Cq. BKPM Consumen

5a2

3

4

TARIFF UPTLSK

based on PLN

Tariff

ye

s

NoRELATED

REGULATION5b

6

Non

SUBSIDIZED

UPTLSK Scheme on Non Subsidized Business

Area

TYPICAL MINIGRIDSINDIVIDUAL SYSTEMS

CONNECTED

MINIGRIDSSHARED EXCESS ENERGY

“THE GRID”

CONNECTIONCONNECTING TO THE PUBLIC GRID

“THE GRID”

CONNECTIONCONNECTING TO THE PUBLIC GRID

MODULAR TOPOLOGY MICROGRID

Note: Subsidized means annual viability gap funding

subsidy by the central government. Up to current

non-subsidized PLN rate is VERY preferred.

Anything higher will be scrutinized

Note: “tariff set by applicable laws and regulations”

currently mean approval from the local government

and parliament (DPR-D)

Full grant for Papua pilot project by

Lundin Foundation –

http://lundin.pubco.net/s/investments.asp

?ReportID=709370

Designed to be modular on both

generation and storage

Smart metering allows for both agent

based credit purchases and individuals

Pole mounted solar PV and grid inverter

Electrical and communication system

designed by Andre Susanto and

confirmed by inverter manufacturer

engineers