Indonesia’s Feed-in Tariff for Renewable Energy

By Dr.-Ing Hasrul L. Azahari M. Met.E

Director of Various New Energy and Renewable Energy

Directorate General Of New Renewable Energy And Energy Conservation, Ministry Of Energy And Mineral Resources

Bali, May 14, 2012

CONDITION OF ENERGY 2010

National Energy Mix

Total in 2010

1066 million BOE

Share of NRE < 5%

1. Public access to energy is still limited:

a. Electrification ratio in 2010 was 67,15%

(32,85% of households not yet

electrified);

b. Development of energy infrastructure

(rural / remote areas and outer islands

generally do not get access to energy);

2. Growth in energy consumption an average

of 7% per year, yet balanced with enough

energy supply;

3. Dependence on fossil energy is still high

(95.4%), reserves are more limited;

4. National commitment to reducing emissions

26% by 2020;

5. Funding for the development of energy

sector is still very limited.

Oil 46,93%

Coal 26,38%

NRE 4,79%

Gas 21,90%

NO RENEWABLE ENERGY

POTENSIAL (MW)

INSTALL

CAPACITY (MW)

RATIO (%)

1 2 3 4 5 = 4/3

1 Large Hydro 75,670 5,705.29 7.54

2 Small Hydro (Microhydro) 769.69 217.89 28.31

3 Geothermal 29,038 1,189 4.00

4 Biomass 49,810 1,618.40 3.25

5 Solar 4.80 kWh/m2/day 13.5 -

6 Wind 3 – 6 m/s 1.96 -

7 Sea 43.000 - -

POTENSIAL AND INSTALL CAPACITY IN DEVELOPMENT OF RENEWABLE ENERGY

IN INDONESIA

The Objective of the Promotion of Feed-in Tariff for the Renewable Energy

• To expand renewable energy development

in all parts of Indonesia,

• To increase the investment of renewable

energy,

• To increase the growth of renewable

energy industry and jobs,

• To increase the ratio of electrified villages.

Feed-in Tariff Promotion

The Government of Indonesia have promoted FIT :

1. Hydro < 10 MW

2. Biomass < 10 MW

3. Geothermal

Next will promote FIT for :

1. Solar PV < 10 MW

2. Wind < 10 MW

Feed-in Tariff

1. Hydro < 10 MW

No. FIT (Rp/kWh) Interconnected

with

Remark

1. 656 Medium Voltage Ministerial

Regulation No.

04/2012

2. 1.004 Low Voltage Ministerial

Regulation No.

04/2012

With Factor as follows :

F = 1 for Jawa and Bali Region,

F = 1,2 for Sumatera and Sulawesi Region,

F = 1,3 for Kalimantan, NTB and NTT Region,

F = 1,5 for Maluku and Papua Region.

Feed-in Tariff

2. Biomass < 10 MW (Based on Biomass and Biogas)

No. FIT (Rp/kWh) Interconnected

with

Remark

1. 975 Medium Voltage Ministerial

Regulation No.

04/2012

2. 1.325 Low Voltage Ministerial

Regulation No.

04/2012

With Factor as follows :

F = 1 for Jawa, Madura, Bali and Sumatera Region,

F = 1,2 for Sulawesi, Kalimantan, NTB, and NTT Region,

F = 1,3 for Maluku and Papua Region.

Feed-in Tariff

2a. Biomass < 10 MW (Based on municipal solid waste by using a

zero waste technology)

No. FIT (Rp/kWh) Interconnected

with

Remark

1. 1.050 Medium Voltage Ministerial

Regulation No.

04/2012

2. 1.398 Low Voltage Ministerial

Regulation No.

04/2012

Feed-in Tariff

2b. Biomass < 10 MW (Based on municipal solid waste by using a

sanitary landfill technology)

No. FIT (Rp/kWh) Interconnected

with

Remark

1. 850 Medium Voltage Ministerial

Regulation No.

04/2012

2. 1.198 Low Voltage Ministerial

Regulation No.

04/2012

Feed-in Tariff

3. Geothermal

No. FIT

(USD/kWh)

Interconnected

with

Remark

1. 9.7 cent High Voltage Ministerial

Regulation No.

02/2011

(will be revised)

Feed-in Tariff

4. Feed-in Tariff for Photovoltaic and

Wind are being processed.

CHALLENGES

1. Energy needs in general, still comes from fossil

fuels, while the use of renewable energy is still

low, but its potential is quite large,

2. Continuity of supply of energy from renewable

energy are intermittent,

3. Energy prices from fossil fuels are still subsidized,

4. Energy potential of renewable energy is quite

large, and needs to be increased on a large scale

development.

OPPORTUNITIES

• Encourage the private sector to invest in

renewable energy,

• Creating development for renewable energy

manufacture and jobs,

• Participation of the private sector in supporting the

development of renewable energy,

• Reducing carbon emission in development of

renewable energy,

• Reducing dependency in using fossil fuels.

Thank You