low carbon technology implementation status on bioenergy in indonesia bioenergy

Energy and Mineral Resources for People’s Welfare

LOW CARBON TECHNOLOGY IMPLEMENTATION STATUS ON

BIOENERGY IN INDONESIA

MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Workshop Low Carbon Technology Transfer Implementation in Indonesia

Jakarta, 4th Novemeber 2014

12/15/2014 1Energy and Mineral Resources for People’s Welfare

delivered by:

EDI WIBOWO

Directorat of Bioenergy


I. ENERGY MIX POLICY

II. BIOENERGY POTENTIAL

III. BIOENERGY DEVELOPMENT, POLICIES AND ITS IMPLEMENTATION

IV. BIOENERGY SUSTAINABILITY

V. CONCLUDING REMARKS


The role of bioenergy -as a part of renewable energy- on national energy mix will be increased

significantly under National Energy Policy

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2020 2025 2030 2035 2040 2045 2050

Oil Natural Gas CoalBioenergy Geothermal Hidro EnergySolar Energy Ocean Energy Other RE (Wind)NE (Nuclear, CBM, etc) Note:

Based on Government Regulation No. 79/2014 on National Energy Policy

Bioenergy

New and

Renewable

Energy

(NRE)

Coal

Gas

Oil

by 2015

NRE: 23%

(Bioenergy: 10%)

by 2050

NRE: 31%

(Bioenergy: 14%)

Product of bioenergy:

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. Directly involvement of the community (pro-

growth, pro-job, pro-poor)

4. Source of bioenergy feedstock depends on human

effort (not depend on nature)


Reaching the 2DS will require 42 Gt CO2 annual emissions reduction by 2050

Biomass is the only renewable energy source that can make a contribution in all sectors, providing

around 10% of total CO2 emissions reduction

Source: Energy Technology Perspectives and IEA 2012

6°C Scenario emissions: 58 Gt ------------>

2°C Scenario emissions: 16 Gt ------------>

Bioenergytechnologies

Emissions reduction in 2050

Bioenergy power 1.0 Gt CO2-eq

Bio-power + CCS 0.3 Gt CO2-eq

Bioenergy heat (industry)

0.5 Gt CO2-eq

Bioenergy heat (buildings)

0.1 Gt CO2-eq

Biofuels 2.1 Gt CO2-eq

Total 4.1 Gt CO2-eq


BIOENERGY DEVELOPMENT IN INDONESIA

1. Bioenergy development in this country mostly has be driven by

government policies, complemented by policies designed to

facilitate and support their achievement.

2. Bioenergy types :

a. Biofuel (Biodiesel, Bioethanol, Biofuel),

b. Biogas (Household and Electricity),

c. Bioenergy for Power Generation.

3. Bioenergy resources :

a. Biofuel crop (Palm oil, Jatropha, Candle nut, Pongamia, Cassava, Sugarcanes/

mollases, Corn, etc),

b. Forest and agriculture residues,

c. Organic municipal solid waste,

d. Sewage sludge,

e. Landfill gas,

f. Animal manure/dung.

g. Household refuse, and

h. Industrial waste.


NoPotential

(MWe)Unit Sumatera Kalimantan

Jawa-Bali-

Madura

Nusa

Tenggara Sulawesi Maluku Papua Total

1 Palm oil MWe8.812 3.384 60 - 323 - 75 12.654

2 Sugar cane MWe399 - 854 - 42 - - 1.295

3 Rubber MWe1.918 862 - - - - - 2.781

4 Coconut MWe53 10 37 7 38 19 14 177

5 Rice husk MWe2.255 642 5.353 405 1.111 22 20 9.808

6 Corn MWe408 30 954 85 251 4 1 1.733

7 Cassava MWe110 7 120 18 12 2 1 271

8 Wood MWe1.212 44 14 19 21 4 21 1.335

9 Cow dung MWe96 16 296 53 65 5 4 535

10 MSW MWe326 66 1.527 48 74 11 14 2.066

Total potential MWe 15.588 5.062 9.215 636 1.937 67 151 32.654

1) Based on MEMR survey in 2011 – 2012

2) Biofuel resources are palm oil, molasses, cassava, etc


BIOENERGY DEVELOPMENT

Increasing the use of

biofuel as a fossil fuel

substitution

Development of

bioenergy based power

plant (as based load )

Increasing the sustainability

supply of bioenergy

feedstock through

development of energy

farms/forest

Utilization of organic

waste as source of

energy

Contribution to

national economy

through development

of bioenergy

industries


Increasing demand of biofuel since the implementation of mandatory policy through

MEMR Regulation 20/2014

Biofuels domestic usage mandatory policy:

• Fossil fuel substitution/reduce oil import

• creating the market of biofuel industrial development

• improvement of domestic economy

190 243

1,812

2,221

2,805

70 20

1,4531,552

1,757

119223

359

669

1,048

0

500

1,000

1,500

2,000

2,500

3,000

2009 2010 2011 2012 2013*

Rib

u kL

Produksi Ekspor Domestik

BIOFUEL PRODUCTION

AND UTILIZATION

32,8

35,4

37,6

40,0

42,6

45,5

48,7

52,2

56,0

60,1

64,669,4

74,780,4

1,13,9 4,3

8,3 8,8 9,4 10,0 10,714,1 15,1

19,6 21,0 22,7 24,4

-

10

20

30

40

50

60

70

80

90

2014 2015 2016 2017 2018 2019 2020 2025 2030 2035 2040 2045 2050

Vo

lum

e (

Mill

ion

KL)

Diesel Oil Demand Biodiesel Demand


• Currently, Indonesia has implemented biodiesel blending B-10 on transportation and industry sector

and B-30 to B-60 on electricity.

• Recently, new Market Price Index for Biodiesel that blended with subsidized fuel has been launched.

• Now the Government are preparing preparation stages to implement B-20 on 2016 by conduct an

engine testing together with automotive engine principal, automotive and expertise association,

university and research institution.

• Implementation B-30 will be conducted on 2020

• Bioethanol utilization/blending become a trending issues in many countries. Implementation of

bioethanol blending has increased significantly in many countries

• There is no doubt related on technical aspect of bioethanol blending

• Preparation for E-0,5 for subsidized fuel and E-1 for on-subsidized fuel will be finished shortly

• Revision of Market Price Index of Bioetanol that blended with subsidized fuel has been signed by

Ministry, with intersting price.


Feed-in tariff ’s regulation hopely can accelerate the grow of bioenergy power plant

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013

18 18

41

59

75,5

90,5

Installed Capacity (MW)FEED-IN TARIFF FOR BIOENERGY BASED POWER PLANT

(MEMR Regulation No. 19 Year 2013 and No. 27 Year 2014)

reducing the use of fossil fuels as fuel for power plants

and increasing national security of supply of electricity

Note : *) Based on Act No. 18 Year 2008 concerning to Waste Management.

Current capacity of bioenergy based on-grid power plant in year 2013

was 90.5 MW (palm waste 76 MW; municipal solid waste 14.5 MW ) and

based off-grid power plant was 1,626 MW.

No. Energy CapasityPurchasing Price of

ElectricityRemarks

Medium Voltage

1. Biomassa s.d 10 MW Rp. 1.150,- / kWh X F

2. Biogas s.d 10 MW Rp. 1.050,- / kWh X F Non sampah kota

3. Sampah Kota (MSW) s.d 10 MW Rp. 1.450,- / kWh Zero waste *)

4. Sampah Kota (MSW) s.d 10 MW Rp. 1.250,- / kWh Landfill *)

Low Voltage

1 Biomassa s.d 10 MW Rp. 1.500,- / kWh X F

2 Biogas s.d 10 MW Rp. 1.400,- / kWh X F Non sampah kota

3 Sampah Kota (MSW) s.d 10 MW Rp. 1.798,- / kWh Zero waste *)

4 Sampah Kota (MSW) s.d 10 MW Rp. 1.598,- / kWh Landfill *)

F is the incentive factor based on area where the plant is installed, as follows::

• Jawa : F = 1

• Sumatera : F = 1,15

• Sulawesi : F = 1,25

• Kalimantan : F = 1,3

• Bali, Bangka Belitung, Lombok ,Kepri : F = 1,5

• Papua and other island : F = 1,6


Area and Source of Biomass

CapacityOff-Grid (MW)

CapacityOn-Grid (MW)

Total

SumateraPalm oil mills

POMESugarcanePulp and paper

3359

66955

76---

4059

66955

KalimantanPalm oil mills 91 - 91

Jawa-BaliPalm oil millsSugarcaneMSW

2142

-

--

14,5

214214,5

SulawesiPalm oil millsSugarcane

1111

--

1111

PapuaPalm oil mills 4 - 4

TOTAL 1.626 90,5 1.716,5


by utilizing waste to biogas we can conserve our fossil energy resources and at the same time we can

conserve our environment

Currently there is more than 13.500 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;

13.836

20.062

44.841

62.721

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

2011 2012 2013 2014

Biogas Production (M3/days)

62 thousand m3 biogas

production can save 38

thousand liter of kerosese

Approach for biogas

implementation

Domestic utilization

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).


Achievement of bioenergy green house gas emission reduction

-

200

400

600

800

1.000

1.200

1.400

1.600

2010 2011 2012 2013

131 234

329

517

325

522

975

1.540

3 7 10 14

(Th

ou

san

d t

on

CO

2e)

Emission Reduction of BiomassaPower Plant (ton CO2e)

Emission reduction of BiodieselUtilization (ton CO2e)

Emission Reduction of BiogasUtilization (ton CO2e)

Total Emission Reduction - Bioenergy(ton CO2e)

2010 2011 2012 2013458,841 763,485 1,312,920 2,071,121


Some promising technologies still need RD&D support to reach commercial-scale


BIOENERGI PROGRAMS

REGULATOR

OFF TAKER

PARTNERSHIP

R & D dan TRAINING AGENCY

KEMENHUB (MoT)

KEMEN PU (MoPW)

KEMENKEU (MoF)

KEMENHUT (MoEF)

KEMENTAN (MoA)

KEMENDAG (MoTrade)

BPPT

ITB

IPB

PT LAINNYA

BADAN LITBANG

BADAN DIKLAT

PERTAMINA

PLN

OTHER

BUBBM

BUMD

BUMN

LAINNYA

FINANCING, TECHNOLOGY DAN STRATEGIC

PARTNERSHIP:

WB, UNDP, USAID, JICA, FAO, NEDO, PEMDA,

KEMNDAGRI, KEMENTAN, KEMENHUB, BPPT,

BAPPENAS, APROBI. IKABI, OTHER,

USA, RRC, JEPANG, JERMAN, TURKI


Sound, internationally aligned policies are needed to ensure bioenergy is produced sustainably Certification schemes should be based on international sustainability criteria (as developed e.g. by the Global Bioenergy Partnership,

GBEP)

However, most sustainability issues are relevant to the whole agricultural/ forestry sector

In the long-term, all agricultural and forestry products should be certified, and an overall sustainable land-use

management should be aimed for


Indonesia actively contribute to promoting bioenergy sustainability, for examples

through:

• Global BioEnergy Partnership (GBEP).

• International Organization for Standardization (ISO).

• Indonesian Sustainable Palm Oil (ISPO).

• Establishing “Feed in Tariff” regulation to encourage “waste to energy”

implementation, including “POME to Energy”.

“POME to energy” activities in Indonesia could give additional reduction (about 3%) of green house

gas emissions from that is targeted in “RAN GRK”.

• Utilization of biogas from animal waste.

• Moratorium on new forest concession, coordinated by President’s Delivery Unit

for Development Monitoring and Oversight (UKP-PPP).


Pricing policy for bioenergy

Development of integrated bioenergy production facility with dedicated feedstocks

Supply of sustainable bioenergy feedstock

Regulating waste/biomassa for export purposes

Availability of transmission network/national grid

Business regulation on non liquid bioenergy product

Infrastructure and technology


1. Not to cut tropical rain forest, but to optimize currently not utilized land(energy forest program).

2. Development of non-edible feedstock and dedicated feedstock forbiofuel and improving productivity of main feedstocks such as palm oil,jatropha, cassava and sugar cane;

3. Integrated implementation for biofuel industries;

4. Development of second generation of biofuel that will createsustainable and low cost biofuel industry;

5. To seek cooperation on R&D on lignocellulosic based or woody-biomass bioethanol.


JALAN PEGANGSAAN TIMUR NO. 1, MENTENG, JAKARTA 10320

Phone: +62 21 39830077 Fax: +62 21 31924585

www.esdm.go.id - www.ebtke.esdm.go.id

Email: [email protected] ; [email protected]

MINISTRY OF ENERGY AND MINERA RESOURCES DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

low carbon technology implementation status on bioenergy in indonesia bioenergy

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