MINISTRY OF ENERGY AND MINERAL RESOURCES DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION INVESTMENT IN PV MINI GRID TO BOOST ELECTRIFICATION IN REMOTE RURAL AREAS Maritje Hutapea Director of Various of New Energy and Renewable Energy Off-Grid Power Conference at Intersolar 2017, 31 Mei 2017 KEMENTERIAN ENERGI & SUMBER DAYA MINERAL KEMENTERIAN ENERGI & SUMBER DAYA MINERAL I. BACKGROUND NATIONAL ELECTRIFICATION RATIO KEMENTERIAN ENERGI & SUMBER DAYA MINERAL NATIONAL ELECTRIFICATION RATIO IN 2016 (%) 2.519 Villages “With No Electricity” KEMENTERIAN ENERGI & SUMBER DAYA MINERAL KEMENTERIAN ENERGI & SUMBER DAYA MINERAL II. NATIONAL ENERGY POLICY NATIONAL ENERGY POLICY (GOVERNMENT REGULATION NO 79/2014) New and Renewable Energy Oil Gas Coal KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 2025 2013 18% 5% 194 MTOE Gas 22% 23% NRE ~ 400 MTOE 46% 31% 25% 30% Coal 2013 Power Plant Capacity Oil 2025 51 GW 135 GW 0,8 TOE/kapita 1,4 TOE/kapita 776 KWh/kapita 2.500 KWh/kapita Energy Intensity 334 SBM/billion rupiah Decrease every year1% Energy Elastisity 1,35 <1 Energy Consumtion Electricty Consumtion 6 NEW AND RENEWABLE ENERGY TARGET BY 2025 KEMENTERIAN ENERGI & SUMBER DAYA MINERAL 45,04 2025 41,01 35,74 29,28 24,66 Geothermal 7.2 GW Hydro 21 GW Bioenergy 5.5 GW Solar 6.4 GW Wind 1.8 GW Other NRE 3.1 GW 18,48 15,81 Totall 12,94 11,73 10,80 8,66 2015 2016 PLTP 2017 PLT Bioenergi Total Installed Capacity NRE Power Plant Capacity 2018 PLTA 2019 2020 Mini Hidro 2021 2022 PLTS PLT Bayu 2023 2024 PLT Laut 2025 Total 2015 2025 55 GW 135 GW 8.7 GW 45 GW (15.7%) (33%) 45 GW KEMENTERIAN ENERGI & SUMBER DAYA MINERAL III. REGULATION TO SETTING UP RENEWABLE POWER PLANT THE MINISTRY OF ENERGY AND MINERAL RESOURCES’S REGULATION NUMBER 12 YEAR 2017 : “UTILIZATION OF RENEWABLE ENERGY SOURCE FOR ELECTRICITY SUPPLY” TYPES OF RENEWABLE ENERGY POWER PLANT : Solar PV Wind Hydro Biomass Biogass Municipal Waste Geothermal PT PLN (Persero) is obligated to buy KEMENTERIAN ENERGI & SUMBER DAYA MINERAL THE MINISTRY EMR REGULATION No. 12/2017 : TARIFF KEMENTERIAN ENERGI & SUMBER DAYA MINERAL No. Tariff Renewable Energy Sources Method of Appointment Regional Grid BPP > National BPP Regional Grid BPP ≤ National BPP 1. Solar PV Auction in capacity quota with minimum 15 MW Maximum 85% x Regional Grid BPP 100% x Regional Grid BPP 2. Wind Auction in capacity quota with minimum 15 MW Maximum 85% x Regional Grid BPP 100% x Regional Grid BPP Reference Price Maximum 85% x Regional Grid BPP 100% x Regional Grid BPP Direct Selection Price determined by direct selection process 3. Hydro a. Capacity ≤ 10 MW: Capacity Factor minimum 65% b. Capacity > 10 MW: Capacity Factor depends on Regional Grid system requirements 4. 5. Reference Price (for 10 MW or less) Maximum 85% x Regional Grid BPP Direct Selection (for more than 10 MW) Price determined by direct selection process Reference Price (for 10 MW or less) Maximum 85% x Regional Grid BPP Direct Selection (for more than 10 MW) Price determined by direct selection process Biomass Biogas of 100% x Regional Grid BPP 100% x Regional Grid BPP 6. Municipal Waste Reference Price Maximum 100% Generation BPP Local Mutual agreement between PLN and IPP 7. Geothermal Reference Price Maximum 100% x Regional Grid BPP Mutual agreement between PLN and IPP BPP = Production Cost of Electricity Regional Grid BPP and National BPP will be determined by the Minister based on the proposal of PT PLN (Persero) THE MINISTRY EMR REGULATION NO. 38/2016: THE ACCELERATION PROGRAM TO ELECTRIFY RURAL, BORDER AREA AND SMALL ISLAND KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Mechanism To provide electricity in certain area until 50 MW; Undevelop rural areas Remote areas Border areas Small islands Offer Business Area To Non PLN Business Entity Minimum Offered Working Area To Be Electrified Is 1 (One) District Small Scale Electricity Supply Business Could Be Operate: With Subsidy Funds Without Subsidy Funds KEMENTERIAN ENERGI & SUMBER DAYA MINERAL IV. PV MICROGRID DEVELOPMENT IN INDONESIA THE POTENSIAL OF PV DEVELOPMENT IN INDONESIA KEMENTERIAN ENERGI & SUMBER DAYA MINERAL • Indonesia as tropical country has a relatively good of solar radiation (4,8 kWh/m2/day throughout Indonesia) • Indonesia comprises of 17.508 big and small island, and that have some areas are difficult to be reached by national grid • Around 2,519 villages are still darkness don’t have yet access to the electricity • The Goverment of Indonesia prioritize the use of Renewable Energy • The Implementation of Solar PV particularly in rural areas has been prioritized to electrified remote villages NRE Micro Grid Infrastucture Development 2011-2016 KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Development by the Government in 2011 – 2016 by State Budget Solar PV (574 units; 24.765 kW) Hydro/Micro Hydro (64 units; 4.322 kW) 574 units of NRE-based infrastructure; 42.680 kW of electricity made, successfully electrified 87.063 families. Total Investment: Rp 2.458 trillion (USD 186,2 million) Microgrid Development Plan 2017 KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Development by the Government as planned in 2017 State Budget North Kalimantan North Sumatera Gorontalo Riau West Kalimantan West Sumatera East Kalimantan Central Kalimantan North Sulawesi Central Sulawesi North Maluku West Papua Maluku Papua South Kalimantan Southeast Sulawesi DKI Jakarta South Sulawesi Banten East Nusa Tenggara NOTE: No West Nusa Tenggara NRE-Based PP 1. Solar PV 2. Hydro/Micro 3. LTSHE* Total Units Capacity (kW/ kWp) 58 3.430 8 2.022 59.678 66 PLT EBT 5.452 *) LTSHE: Lampu Tenaga Surya Hemat Energi (Energy Efficient Solar Lights) Targeted to electrified 424 villages / 70.017 Families. (including the installation of LTSHE) ELECTRIFICATION PROGRAM FOR 2.519 VILLAGES (2017-2019) KEMENTERIAN ENERGI & SUMBER DAYA MINERAL Lampu Tenaga Surya Hemat Energi (LTSHE) “Solar Lamp” 2.519 Villages “With No Electricity” 47,6 Million Household 34.958 Villages 381 Thousand Household 2.099 Villages 293.532 Household in 20 Provinces - By Government Budget (APBN) 2017 331,5 Billion - By Government Budget (RAPBN) 2018 996,6 Billion 4 3 2 1 1 2 3 197.803 + (56.591) 3.372 Billion 887.141 – (56.591) 2.753 Billion 692.064 3.801 Billiom 955.692 Household without access to electricity Source: Badan Pusat Statistik, 2014 95.729 Total Government Budget 11,25 T 2.828.429 17 DOCUMENTATIONDOCUMENTATION BORBAN, PAPUA (15 kWp) BUGI, PAPUA (20 kWp) Siandau, North Kalimantan AIDIRU, PAPUA (30 kWp) KEMENTERIAN ENERGI & SUMBER DAYA MINERAL BAMANA, WEST PAPUA (30 kWp) BANGAI, PAPUA (15 kW) The Challenges of Microgrid Development in Indonesia KEMENTERIAN ENERGI & SUMBER DAYA MINERAL • Need to establish “Local Management Unit” to operate and maintain the facility • Lack of rural people capability to monthly payment for operating and maintenance of the facility • Need to engange local university and regional government to facilitate training in technical issue KEMENTERIAN ENERGI & SUMBER DAYA MINERAL MINISTRY OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA DIRECTORATE GENERAL OF NEW, RENEWABLE ENERGY AND ENERGY CONSERVATION Jalan Pegangsaan Timur No. 1 Menteng, Jakarta Pusat 10320; Telp/Faks : 021-31924540 www.ebtke.esdm.go.id