esco in indonesia opportunities and constrains on energy

SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
ESCO IN INDONESIA
OPPORTUNITIES AND
CONSTRAINS ON ENERGY
EFFICIENCY INVESTMENT
POTENSIAL
Banu Anang Priyanto
Secretary General
Asosiasi Perusahaan Penunjang Konservasi Energi Indonesia
(Indonesia ESCO Association )
for people to act an Audit Recommendation, they need money. Energy Performance Contract (EPC) can supply that money by using
what the owner is paying for waste energy . Estimated to be USD 4 billion in Indonesia ……. Hansen Associates – Shirley J Hansen, PhD
– author of “ESCO AROUND THE WORLD”
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
EE SAVING POTENTIAL, ANNUAL SAVING
OVERALL RANKINGS *)
Indonesia Energy Savings Potential at least US$
278 Millions Annually
RANK
Investment
Potential
Payback
Period
ESCO Sector
Capacity
Regulatory
Framework
Overall
Ranking
1
Malaysia
Singapore
Thailand
Singapore
2
Indonesia
Philippines
Singapore
3
Thailand
Vietnam
4
Singapore
Indonesia
Malaysia
Philippines
Indonesia
Vietnam
Singapore
Thailand
Malaysia
Philippines
Indonesia
Vietnam
5
Vietnam
Thailand
Indonesia
6
Philippines
Malaysia
Vietnam
Thailand
Philippines
Malaysia
ESCO Sector maturity critical for market development and penetration
Most developed in Singapore and Thailand
Commercial
; 62; 22%
Industrial;
216; 78%
(Result implies that ESCOs in these countries are in best position to implement
large scale EE project if investments start flowing and demand increase
substantially)
Source : Walkthrough Audit by AFD 2011-2012
Regulatory Enviroment is the ultimate determinant of best investment
destination
Source : Market Feasibility Report For Assessing the need for an Energy Efficiency Fund in South-East Asia (ReEx Capital Asia 2010)
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
ESCO INDUSTRY IN INDONESIA - 1
MULTI DELIVERIES FACTORS PROMOTING EE
PROJECTS
Utilize
Demand side
Management
(DSM)
The growth of ESCO industry in Indonesia has been
so slow (undeveloped) due to some reasons :
• Undetermined and lack of regulatory frame works of
ESCO Industry, at multi level stages.
• No ESCOs accredited body established in Indonesia ,
hence no ESCO standard model applied.
• Limited financial access for funding EE projects under
ESCO’s model. Local Financial Lender Officers have
limited knowledge and understanding of EE projects or
energy performance contract concept;
• Several Manufacturer or Supplier now doing with their
own “ESCO model” on EE or CE projects. MNC ESCO
adopted their principal model. Support by own capitals.
• Immature ESCO’s Associations (established in Q1 of
2011) resulted low ESCO Capacity.
Provide
Innovative
Financing
Structures
Establish
ESCO’s
Capacity
• Existing ESCO has limited experience with successful
ESCO projects (limited published information)
Market
Transformatio
n driven by
Regulations
EE Revolving
Fund (Dana
Bergulir EE by
GOI)
Catalyzing
and
Promoting
EE Project
Implement
ations
Provide
Incentives,
Subsidies and
Grants
Improve
Manager
Energy
Capacity for
Analytical
*) World Bank References - Energy Assessment in Indonesia
Fast Growing Indonesian’s economy, boosted energy consumption and emissions
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
Lack of EE Development
and Project Financing
Lack of Regulatory
Framework
Lack of Customer
Demand
EXPECTED NEXT 1-2
YEARS OPPROTUNITIES
Key Driver
for Changes
Banks do not recognize EE Projects as the special product
Project financing is not popular for ESCO business
Collateral is still a big problem
What the banks say:
No Central Bank Regulations adopted EE Project concept
There are not enough good projects
Long Term Fund are not available
Regulatory Frame Work
Determined by Authorities
(Government)
Supporting Budget for
Develop ESCO’s Capacity
(APBN, Offshore Funds,
Grants)
Esco Industry
Regulations issued
Rational Used Decree
issued (4 sector)
Esco’s Accreditations
Body Establish
Client with better
informed about EE
Labeling and Standard
EE Product Decree
Issued
Bank Adopt EE Project
Valuations
Central Bank Decree
issued for EE Project
EE Trust Fund Decree
issued by Cap Market
Authority
Local ESCO and or
MNC Affiliated ESCO
Established
Who Can Solve ?
Lack of Know How and
Awareness
Financing Problems
Main Barriers
ESCO INDUSTRY IN INDONESIA - 2
REGULATORS (GOV’T)
ESCO Companies
Equipment Producers
Consultant companies
Capacity Building of
all EE Stake Holders
4 Sectors Demand Side
Management (DSM )
Regulation issued
Better Financial Access
for EE Projects
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
EE STAKE HOLDER RULES – ESTABLISH MUTIDELIVERY FACTORS IN PROMOTING EE PROJECTS
Multistake Holder Roles to EE Development
No.
EE Stake Holder
REGULATORS
1
Ministry of Energy and Mineral Resources
(MEMR)
2 Ministry of Industry (MOI)
3 Ministry of Finance (MOF)
4 Ministry of Environment (MOE)
5 Ministry of Public Works (MPW)
6 Ministry of Transportation (MOTrans)
7 Ministry of Trade (MOTrade)
8
Capital Market Supervisory Board
(Bapepam LK)
9 Central Bank (BI)
10
Municipalities / Local Government (MLG),
National Standarisation Board (BSN)
Propose Roles to EE Development
Market
Utilize
Innovative
Transformat Incentives,
Demand- Develop of
Financing
ion (by
Side
ESCOs
subsidies
Sources and
Labeling,
Manageme Industry
and grants
Structures
Standardisa
nt (DSM)
tion etc)
Improve
Energy
Manager
(EM)
Capacity
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
IDENTIFIED EE STAKE HOLDER RULES - PROMOTING EE PROJECTS
REGULATOR
MOI
MEMR
MO
Trade
MO
Trans
MPW
(PU)
MOF
(DEPKEU
)
MOE
(KLH)
CENTRAL
BANK
CAPITAL MARKET
AUTHORITY
Municipalities /
Local Government
(MLG),
STATE
ENERGY
SUPPLIER
FINANCING
Domestic Financial
Institutions
EQUIPMENT
SUPPLIER
NATIONAL
ELECTRICITY
COMPANY (PLN)
Domestic Bank
(Commercial, Islamic ,
Local Development
Bank, Credit People
Bank)
Equipment
Manufacturers
, Suppliers,
Retailers
NATIONAL GAS
COMPANY (PGN)
STATE OIL
COMPANY
(PERTAMINA)
Asset Management Co
- Investment Manager
Multi Finance
Company
SUPPORTINGS
SERVICES
Energy Audit
Firms
Building
Architects
ESCO's
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
INTRODUCTIONS OF INDONESIA ESCO ASSOCIATION (APKENINDO)
Established and Launched on April 21, 2011 based on Notary Decree Ref. No. 30 and Ref. No. 31, H. Teddy Anwar
SH, Public Notary in Jakarta and Registered in Jakarta District Court.
ROLE OF APKENINDO :
1. Catalyzing activities and promotion of the establishment of strategic alliances :
ESCOs, Potential Clients – Energy End Users,

Financing institutions, EE equipment’s manufacturers and distributors, and Support Institutions
2. Strengthen the offer of ESCO’s by
• Establishing a Special Fund as an option of CE financing sources (Apkenindo’s current initiations)
• Help establish a financing mechanism that will allow ESCOs to bundle several projects and reduce transaction costs.
3. Support the member to develop EE project by :

Technical Assistance

Assistance in establishing the contact, negotiations

Capitalization of Experiences – Promotion of results

Capacity Building , Training and Seminar
4. Apkenindo served to Regulators as counter party to promote and development of EE Project , determine regulation
frame works etc.

Asosiasi Perusahaan Penunjang Konservasi Energi Indonesia (APKENINDO) / Indonesia Supporting
Companies Association for Energy Conservations (INDONESIA ESCO ASSOCIATIONS)
Judianto Hasan (President) / Banu Anang Priyanto (Secretary General )
Contacts :+62811840335 [email protected]; [email protected]
+62818767503 [email protected], [email protected]
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
RANGE OF ESCO PRODUCT / SERVICE OF ESCO BUSINESS
POTENTIAL TO DEVELOP BY APKENINDO MEMBER
PT. INDRA KARYA (PERSERO)
P.T. METROPOLITAN
BAYU TAMA
4 STATE OWNED COMPANIES + 12 PRIVATE COMPANIES
Lightings
HVAC Retrofits
Building Control Systems
Motors and Drives
Chiller and Boiler Upgrades
Thermal Storage/Load Shaping
Generation Efficiency Improvement
On-site Power Generation (Distributed
Generation, CHP, Cogeneration)
Power Quality
Industrial Processes (e.g., compressed
air systems)
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
PILOT EE INVESTMENT PROJECT – ON GOING PREPARATION BY APKENINDO AND EE STAKEHOLDERS - 2013
Waste Heat Recovery Power Generation
•
Proposed Client : Cement Company (State Owned Co)
•
Project Title : Waste Heat Recovery Generator (WHRG)
PROJECT HIGHLIGHTS :
•
Waste Heat Potensial : 29,8000 – 42,134 kcal (7,53-9,27 MW)
•
Steam Rankine Cycle and Organic Rankine Cycle.
Waste Water Recovery Power Generator
•
•
•
Proposed Client : Pulp and Paper Co (Private)
Project Name : Waste Water Recovery Electricity Generation
Technology /Equipment : Un aerobic Reactor + Boiler + Engine
SEMINAR MEMBUKA SUMBATAN INVESTASI ENERGI EFFISIENSI DI
INDONESIA : TANTANGAN DAN PELUANG KEBIJAKAN DAN REGULASI
JAKARTA, 20 MARET 2013
THANK YOU