WGES 2011 Geothermal Development in Indonesia 2011 (Arc Media Global)

Geothermal Energy Development
in Indonesia

Herman Darnel Ibrahim
Dr [ITB Indonesia], M Sc [UMIST Manchester] Ir [ITB]
Dr. [ITB, Indonesia] M.Sc. [UMIST, Manchester], Ir.

Member of National Energy Council of Indonesia
Vice Chairman of Expert Board of Indonesian Renewable Energy Society
Board Member of IGA and Chairman of IGA Western Pacific Regional Branch

Presented at World Geothermal Energy Summit 2011
Arc Media Global, Manila, 8 December 2011

Manila, 08.12.11 Indonesian Geothermal Development 2

Part 1: Indonesia Energy and Renewable
Energy Development at Present
Energy Development at Present

Arc Media Global, Manila, 08.12.11 Indonesian Geothermal Development 3

Indonesian Demography and Energy Utilization

Features Total % of World
[2009] World Rank
Land Area 1.9 Million 1.3 16
sq km
sq km
Population 230 3.41 4
Republic Indonesia
p Million.
GDP $ 540 0.95 18
Billon
Electricity 150 0.9 15
TWh
Energy
E 150
150 1.5
15 13
MTOE


Energy Resources, Production and Utilization
In Million Ton Oil Equivalent [MTOE]
Oil Gas Situation 2009 Coal RE*
7961 8285 Resources 51571 606
1125 3954 Reserve 10384 NA
628 2824 Proven Reserve 2651 NA

brahim
48.7
48 7 75.8
75 8 Production 125.9
125 9 13.9
13 9

Copyright ® H Darnel Ib
37.0 0 Import 0.03 0
[24.0]
[24 0] [43.2]
[43 2] [Export]** [97.5]
[97 5]
59 26.2 Consumption 26.7 13.9
•Including Biomass in MTOE per Year
** Crude and Refined Oil
Source of Data: Indonesia Energy and Economy Statistic 2009, MEMR
S fD t I d i E dE St ti ti 2009 MEMR

Renewable Energy Supply and Carbon Emission
Energy Unit Indonesia* World**
Primary Energy Consumption MTOE 159.9 10583
Renewable Energy [RE] MTOE 7.7 547
Renewable Energy Share % 4.8 5.1
Fossil Energy MTOE 152.2 9308
Fossil Energy Share % 95.2 88.1
Oil Energy MTOE 79.1 3846
Oil Energy Share % 49.5 36.3
Electr. Share in Final Energy
El t Sh i Fi l E % 12.1
12 1 19.2
19 2
CO2 Emission Million Ton 456 27347
CO 2 per TOE Primary Energy
CO 2 per TOE Primary Energy Ton 2.85
2 85 2.58
2 58
CO2 Emission per capita Ton per capita 1.9 4.20
Source: Handbook of Energy and Economic Statistics in Japan 2009, The EDMC Japan
f gy p p
* 2010, ** 2006

Characteristic of Indonesian Renewable Energy
Geo‐ Biomass Biomass
No Description Hydro Solar Wind Ocean
thermal Waste Biofuel
1200
1200 240
240 175 M
175 M
1 Potential 28 GWe 75 GWe 9GWe 50GWe
GWe GWe kiloliter
95
2 Supply Capability 25 GWe 45 GWe 120 GWe 9 GWe 12 GWe 30 GWe
MTOE
Seasonal
S l Intermit I t
I t it Intermit C ti
it Continu
Availability and Continuo Intermitt Affected
[Semi tent tent ous
3 Base Load us [Base ent [Low by
Base [Low [Low [Base
Capability Load] Density] Weather
Load] Density] Density] Load]
Medium Small to Small to Small to
4 Capacity Scale Small Medium NA
to Big Big Medium Medium
Technology
5 Ready Ready Ready Ready RnD Ready Ready
Readiness
Medium Low Medium
6 Investment Cost High High Medium NA
High Medium High
Production Cost
7 50‐80
50 80 30‐120 200‐500 50‐140
30 120 200 500 50 140 NA 50‐120
50 120 NA
USD per MWh*
*Source: REN21 Renewables 2010 Global Status Report

 Among all renewable energy sources only geothermal and
biomass has the base WREC 20110 Indonesian Energy
11.10.18 by HDI
load capability. 7
Scenario and RE Perspective to
2050

RE Energy Development Issues

 Electrification ratio and energy consumption is still
relatively low: Choice of priority to grow or go green .
l l l h f
 Subsidy of oil and electricity: Barrier for RE and Low
Carbon development [competitiveness]
C b d l t[ titi ]
 RE project preparation and readiness: Resources
Inventory, Survey [+Exploration] and Feasibility Studies
Inventory Survey [+Exploration] and Feasibility Studies
 Conflicting in land use: About 80 % of geothermal are in the
area of Forest Conservation and National Park
area of Forest Conservation and National Park
 Project funding: Small Player [local] for Small to Medium
Sca e ojects, C ed t o t ess
Scale Projects, Credit Worthiness


Development Progress and On Going Projects

Energy National Installed Yearly On Going
Potential Capacity
Capacity Production Project
Project
[MWe] [MW] [GWh] [GW]
Geothermal 29,000 1,194 11,000 4,000
Hydro 75,000 3,500 10,000 2,100
Mini Hydro 5,000 600 3,000 480
Solar Energy 1,200,000 12 18 70
Ocean Energy 240,000 0 0 10
Biomass [waste] 50,000 300 2,000 100
Wind Energy 9,000 1 1 30
Total 1,607,000 5,607 26,019 6,790
Biomass [biofuel] 175 M kl NA 600000 kl No Info


National Energy Council and Energy Policy and
Planningg
Dewan Energi Nasional [DEN] President As Vice President Minister Energy
National Energy Council Member: Chairman Vice Chairman Exec. Chairman
7 Ministers + 8 Stakeholder Rep.[SHR]
Minister Minister Minister Minister Minister Minister Minister
Transport Agriculture Industry Envir’ment Research Dev. Plan Finance

Academic SHR: Industry SHR: Consumer SHR: Environment Technology
Tumiran H. Darnel Ibrahim H Agustiawan SHR: SHR:
Rinaldy
y Eddie Widiono Agusman E
g Mukhtasor Widjajono
j j

Energy Laws National National National Energy Policy
and
d Energy
E Energy Plan
E Pl Long Term
L T Implementation
I l i
Regulation Policy [KEN] [RUEN] Plan [RPJP] Supervision

Central Govt. Energy SOEs Private Energy Regional Industry Society
Departments [BUMN] Industries Government Large Users Consumers

Energy Supply Security Economy [Competitiveness] Environmental Preservation

Renewable Energy Institutional
National Energy Council
Ministry Ministry Ministry Ministry
Transport Envir’ment Energy Finance

Ministry Ministry DG DG
Parliament
Industry Research Electricity Oil&Gas
Energy
Commission
Ministry
y Ministryy DG DG Coal&
Agriculture Dev. Plan New & RE Mineral

“Supporting” Agencies
g g
Implementing Agencies
Implementing Agencies Provincial District
Energy Energy
National Agency Agency
Council of
Climate Ch
Cli t Change
Regulating and Licensing Agencies
Private State Own Energy Users
Energy Energy and
Companies Companies Societies
12

Indonesia Energy Policy
Energy Policy [Current] Initiatives and Programs
Diversification • Geothermal, Solar Energy,
• Maximize Renewable Share Biofuel, Biomass,
• Minimize Oil Share Gasification, Mini Hydro
• U C l dG t b i
Use Coal and Gas to bring cost
t • R
Remove Oil Subsidy
Oil S b id
down • Coal PP, Gas for Houses
Conservation • CCGT Plant
CCGT Plant
• Maximize Renewable Share • Loss Reduction
• More Efficient Conversion
More Efficient Conversion • Labeling, Energy Audit
Labeling, Energy Audit
• Demand and Supply Side Eff’cy. • Mass Transport
Pricingg • Remove oil subsidy .
y
• Market Price Primary Energy • Competition on oil
• Uniform Electricity Price distribution
• Subsidy Electricity and Oil
b d l d l • Subsidize Biofuel
b d f l
13

Renewable Energy Target and Commitment

 Indonesia will voluntarily reduce its carbon emission of 26% by
2020 [P id
[President speech at G20 M i i B
h Meeting in Boston].
]
 Ministry of Energy set the target of new and renewable energy
share of 25% of the energy mix by 2025 [Vision 25 25]
25‐25].
 Government is working to develop a regulation of Feed in Tariff for
RE: Biomass Solar Energy and Minihydro [Mandate Price]
Biomass, Minihydro.
 National Energy Council recommends to set RE target in National
Energy Plan and to oblige producer to produce RE [Mandate
Quota]
 RE regulations is being reviewed by government to make
g g y g
necessary improvement and to remove the barriers [oil and
electricity subsidies].


Regulation Pushing Renewable Energy

 Energy Law: Prioritize Renewable Energy and
Environmentally Friendly Energy
E i ll F i dl E
 Minister Decree: Import Tax Exempt for RE machinery
equipment , Corporate Tax and VAT Incentive in RE Business.
equipment Corporate Tax and VAT Incentive in RE Business
 Minister Decree: Purchasing of geothermal electricity up to 9.7
cent per kWh.
p
 Minister Decree: Obliged Utility [PLN] to purchase electricity
from RE small scale power plant up to 10 Megawatt.
 President Decree: Subsidizing biodiesel energy for domestic
use [allocated Rp 2000 per liter].
 DG NREEC Decree: Audit Energy Obligation for energy user of
DG NREEC Decree: Audit Energy Obligation for energy user of
more than 6000 TOE or 69780 MWh.


Part 2: Geothermal Development in
Indonesia
I d i

First Geothermal Plant Was in 1978
The first survey by geothermal
experts is started in 1964,
followed by more specific
surveys in 1968. Six exploration
wells were drilled in Kamojang
j g
West Java from 23 September to
27 November 1972. The well No
Commemorative Geothermal Well No 6 Kamojang
6 is then used for experimental
production well and the first
monoblock of 250 kW was
inaugurated 27 Nov 1978. The
first commercial power plant
p p
Kamojang 1 of 30 MW is then
built, and was inaugurated in 29
January 1983. Kamojang Geothermal Power Plant
17

Indonesian Geothermal Resource is Over 29000 MWe

Indonesia has an enormous
potential of geothermal The
geothermal.
potential are mainly located in
Sumatera, Java, Sulawesi, Nusa
Tenggara and Maluku. The total
potential identified in 276 areas is
more ththan 29 038 MW Th
29,038 MWe. The Geothermal Potential in Indonesia Archipelago
Potential is classified as Proven
Reserve: 2 288 MW Probable
2,288 MW,
Reserve: 1,050 MW, Possible
Reserve: 12,529 MW. The
Potential classified as Hypothetic
Resources: 4,391 MW and as
Speculative R
S l ti Reserve: 8 780 MW
8,780 MW. Kamojang the First Geothermal Field, West Java
18

Geothermal Energy Resources 2009 [2011]

Location, Resources [MWe] Reserve [MWe]
No.
Island Speculative Hypothetic Possible Probable Proven
1. Sumatera 4,973 2,121 5,845 15 380
2. Java 1,960
, 1,771
, 3,265
, 885 1,815
,
3. Bali and NT 410 359 973 - 15
4. Sulawesi 875 32 959 150 78
5. Maluku 370 37 327 - -
6. Kalimantan 45 - - - -
7. Papua 50 - - - -
Total 257 8,683 4,320 11,369 1,050 2,288
Locations [276] 13,003 [13171] 14,707 [15867]
Total Indonesia 27,710 [29038]
Source: Directorate General of Mineral Coal and Geothermal Indonesia 2009
20

Location of Geothermal Energy Resources 2011

Installed
Number of Potential
No. Island Capacity
Locations [MW] Source: Badan Geologi, MEMR 2010
[MW]
1 Sumatera 86 13,516
13 516 12
2 Java 71 10,092 1,117
3 Bali 5 296
4 Nusa Tenggara 22 1,471 Legend:
5 Kalimantan 8 115
Initial Survey Ready to Develop
6 Sulawesi 55 2,519
, 60
7 Maluku 26 954 Detail Survey Installed
8 Papua 3 75
Total 276 29,038 1,189
21

Parties Involved in the Concession Award
Minister of Energy and Mineral Resources
Decide: Guidance and Guidance and
Price and Compensation of Data+Pre FS
p Supervision
p Supervision
p
Price of Steam and Electricity Governor
of Province
Tender
Committee Bupati, Mayor
Decide Decide of District Paying
Concession Personnel Data+Pre FS
Data+Pre FS
Compensation
Tender Except *
Pre FS by
Government Licensing
Concession Appointment
pp • Exploration
p
Area
A of Winner • FS
[ W K P ] Tender • Exploitation
*Pre FS by Private
y
[First Right Refusal]
22

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