Directorate General New Renewable Energy and Energy Conservation

Ministry of Energy and Mineral Resources

Republic of Indonesia

UPDATES AND ROADMAP

OF RENEWABLE ENERGY
DEVELOPMENT

Presented on Forum Group Discussion Ammonia Co-Combustion

Into Coal Power Plant

Chrisnawan Anditya
Director of Various New Energy and
Renewable Energy

19th August 2021

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 OUTLINE
01 ENERGY SECTOR COMMITMENTS

02 CURRENT CONDITIONS AND POLICY

MILESTONES
03 ENERGY TRANSITION

04 NRE DEVELOPMENT OPPORTUNITIES AND

CHALLENGES

05 CLOSING

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 ENERGY SECTOR COMMITMENTS TOWARDS NET ZERO EMISSION
UNFCCC - COP21, December 2015
National Commitments 2016-2030:
• The mandate of Law No. 16/2016 on Ratification of the
Paris Agreement: reducing GHG emissions by 29% (self-
effort) or 41% (with international assistance) by 2030
according to NDC;
• The energy sector reduces GHG by 314–398 million tons of
CO2 in 2030, through the development of renewable
energy, implementation of energy efficiency, energy
conservation, as well as the application of clean energy
technology.
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Leaders Summit on Climate, 22 April 2021
Indonesia Towards Net Zero Emission by 2050
1
Commitment for concrete action on climate change
The moratorium on natural forest and peatland conversion has
reduced forest fires by 82%.
2 Encouraging green development for a better world
Indonesia has updated its NDC to enhance the capacity of
climate adaptation and resilience
3 Global partnership must be strengthened
Development of the Indonesia Green Industrial Park covering an
area of 12,500 hectares in North Kalimantan, the largest in the
world. There is also great opportunities in the development of
biofuels, lithium battery industry, and electric vehicles.
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 INDONESIA’s NATIONALLY DETERMINED CONTRIBUTION
Target Realization
Reduction
GHG Emission GHG Emission in 2030
(Million Ton
No Sector 2010 (Million (Million Ton CO2e)
CO2e)
Ton CO2e)
BaU CM1 CM2 CM1 CM2 38%
1 Energy 453.2 1,669 1,335 1,271 314 398
2 Waste 88 296 285 270 11 26
3 IPPU 36 69.6 66.85 66.35 2.75 3.25
4 Agriculture 110.5 119.66 110.39 115.86 9 4
5 Forest 647 714 217 64 497 650
Total 1,334 2,869 2,034 1,787 834 1,081

Target of reduction
Mitigation 2020 Emission
(Million Ton CO2e)
No Mitigation Action
Reduction (Ton CO2e)
Renewable energy 170,42
I New and Renewable Energy 34.291.037
Energy efficiency 96,33
II Energy Efficiency 12.968.198
Clean power 31,80
III Low Carbon Fuel 8.398.804
Fuel switching 10,02
IV Green Power Plant Technology 5.908.594
Post mining
5,46
reclamation V Others 2.790.370
Total 314,03 Total 64.357.004

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CURRENT CONDITION
Dependence on fossil energy while the mix of primary energy and utilization of NRE is still minimal

PRODUCTION VS DEMAND FOR OIL NATIONAL ENERGY MIX RE IMPLEMENTATION

Consumption
+ 1.5 million NRE 11.2% Potential Total Total Utilization
2000 450.4 GW 10.67 GW (2,37%)
bopd
1500 OCEAN 17.9 GW 0 MW (0%)
Coal
1000 38% National GEOTHERMAL 23.9 GW 2,130.7 MW (8.9%)
Oil
Produksi
Production 500 Energy Mix BIOENERGY 65.2 GW 1,916.4 MW (2.9%)
± 700,000
+ 700 ribu bopd
bopd
0 2020 31.6% WIND 60.6 GW 154.3 MW (0.3%)
1965 2003 2020
Oil Gap -500 HYDRO 75 GW 6,286.7 MW (8.6%)

Oil Production -1000 Natural Gas SOLAR 207.8 GW 182.3 MWp (0.1%)
Oil Consumption 19.2%
-1500 EBT potential is being updated
*) Status: Semester I 2021
Oil production continues to decline, while 1 Coal still dominates the share of national
1
consumption is relatively increasing. energy use. However, the carbon The potential of RE has not been
1
Impact: an increase in imports and a emissions released by coal are very large utilized optimally. To date, only 2% of
trade balance deficit. (not environmentally sustainable). the total potential has been utilized.

2 In addition to renewable energy, the

It is necessary to utilize alternative energy existing potentials of new energy are
2 The utilization of renewable energy as
sources to reduce dependence and 2 still not widely developed.
an environmentally friendly energy
import fuel. sources is still low.

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 MILESTONE NRE DEVELOPMENT POLICY
2010-2019 2020/2021
1. Derived regulations of Law 30/2007 regarding energy management in Indonesia were 1. Drafting of Law on NRE.
issued: 2. Preparation of Presidential Regulation on
• Amendment to Law 27/2003 on Geothermal. Renewable Energy Prices.
• GR 79/2014 on National Energy Policy, targets 23% NRE in 2025 and 31% NRE in 3. Formulation of the National Grand
2050. Energy Strategy, as a strategic step in
• Presidential Regulation 22/2017 concerning the General Plan of National Energy. energy management, including
2. MEMR Regulation No. 50/2017 jo MEMR Regulation 53/2018 concerning the Utilization accelerating the development of NRE to
of Renewable Energy Sources for the Provision of Electricity. achieve the target of 23% NRE in 2025.
3. MEMR Regulation No. 49/2018 jo MEMR Regulation No. 16/2019
regarding Rooftop Solar PV. 3 4. Finalization of the MEMR Regulation
Revision regarding Rooftop Solar PV.

2000-2009
2 5. Drafting of MEMR’s Decree regarding
Conversion of Diesel Power Plants to NRE
Power Plants.
1. Law No. 27/2003 on Geothermal 6. Preparation of a greener 2021-2030 State
published. Electricity Company's Electricity Supply
2. Law No. 30/2007 on Energy was Business plan (RUPTL).
passed. Law No. 30/2007 later
became the legal protection for
1 7. Preparation of the MEMR Regulation on
the Co-Firing Program.
energy management in Indonesia,
including new energy and
renewable energy.
3. GR No. 70/2009 on Energy
Conservation published.

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 ENERGY TRANSITION TOWARDS NZE
Clean
Fossil Technology
Fuel (CCT, CCUS) +
Net Sink

Energy
Green Energy Independence
Fossil Fuel NRE Acceleration:
- Primary Energy Substitution (Biofuels, Energy Security
Availability, Cofiring, RDF/SRF)
Accessibility, Affordability, - Fossil Energy Conversion. - Electric
Sustainability & Competitiveness - Additional Capacity of NRE Power Vehicle Sustainable
Plant, focus on Solar PV. - Nuclear (incl. Development
o Hydro (incl. pumped storage) SMR’s)
o Wind (on-shore and off-shore) - Battery
o Biomass & Waste - Hydrogen Low Carbon &
o Geothermal (Gov’t Drilling, small- Climate Resilience
scale)
o Ocean Energy
- Non-Electricity / Non-Biofuels
(Briquette, Biogas, CBG).

Renewable Energy
Smart Energy, Smart Grid,
Energy Conservation
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 SOLUTION
GRAND STRATEGY ENERGY 1: Increase crude production by 1 million bopd and
acquire foreign oil fields for refinery needs.
2: Increase the capacity of the BBM refinery.
3: Optimizing the utilization of natural gas (such as BBG
VISION for transportation and gas for industry).
4: Increase the use of electric vehicle (KBLBB).
Creating national energy resilience
5: Accelerate the use of renewable energy power plant
and independence (solar power plant) and optimize biofuel production
(biodiesel or bio hydrocarbons).
A
CHALLENGE
6: Increase domestic LPG production.
Energy demand is increasing, and energy supply 7: Increase the construction of the city gas network.
capacity is limited:
8: Encouraging the use of electric stoves.
1. Production of crude oil fell, imports of crude
B 9: Develop DME, methanol, fertilizer & syngas
and gasoline increased. production.
2. LPG is still imported.
3. Coal exports were depressed.
4. The gas and electricity infrastructure is not 10: Build a gas & LNG receiving terminal.
yet integrated. C 11: Build electricity transmission & distribution, smart
grid, off grid power plant and build small scale
nuclear power plants.
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 GOVERNMENT PROGRAMS FOR NRE DEVELOPMENT
1. Indonesian Government aims to add 38 GW of
NRE Installed Capacity by 2035
(GW)
2. Solar energy is prioritized due to its relatively low
cost and short installation duration. 50
3. NRE Acceleration Efforts:
45
NRE Share Target
• Primary Final Energy Substitution, by utilizing
40
the existing technology; B30-B50, co-firing,
RDF utilization. 35
23%

• Fossil Primary Energy Conversion, converting 30

Diesel PP or Coal Powered PP into NRE PP, Current
NRE Share
biogas, and pellet for cooking. 25

• Increasing NRE Capacity, to meet the new 20 11,2%

demand; focus on the development of Solar 15

PP.
10
• Utilization of Non-Electric NRE / Non-Biofuel
such as briquettes and drying of biogas 5
agricultural products.
0
• Implementation of the Presidential '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35
Regulation regarding the price of NRE. Solar Wind + Nuclear* Geothermal Bioenergy Hydro
• Revising Ministerial Regulation regarding
Source: National Grand Strategy for Energy Concept
Rooftop Solar PV.
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 ENERGY MIX AND GHG EMISSION REDUCTION
Energy Mix • NRE share in the National Energy mix
700
PLTA PLTS PLTB
50% has increased 2 two folds during the
600 PLTP Bio Bio
PLT based PP Cofiring last 5 years and reached 11,2% in 2020
40%
BBN Bauran EBT and is targeted to reach 28% in 2030.
500

26% 26% 27% 28%

30%
• Energy sector has contributed to 64,36
400 25%
MTCO2e of GHG emission reduction
MTOE

23%
19%
300 17% 20% (2020). By 2030, it will reach 314
15%
200 11,2%
14% MTCO2e .

100
10% • Emission reduction will be accelerated
through:
0 0% a. Provision of electricity through NRE
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
0 generators,
Million Tonnes CO2e

100 b. Implementation of energy

64,36

efficiency,
94,86

113,37

132,42

200
159,13

c. Use of Biofuels,
196,75

219,86

300 241,26 d. Implementation of biomass cofiring

260,38

284,82
to reduce coal consumption for

314,00
400
Coal PP,
Lainnya (Reklamasi Pasca Tambang) e. Utilization of electric vehicles, and
Penggunaan Teknologi Pembangkit Bersih
Bahan Bakar Rendah Karbon
f. Transition to low-carbon fuels and
clean generation technologies.
CO2 Emission Reduction

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LONG TERM STRATEGY TOWARDS NET ZERO EMISSION
Energy Sector from Supply & Demand Side*)
ENABLING CONDITIONS:
Peaking emission : before 2040
Net Zero Emission : 2060 or sooner with International Assistance
SUPPLY STRATEGY
MASSIVE NRE DEVELOPMENTS INTERCONNECTIONS OF TRANSMISSION (SUPER GRID) AND SMART GRID
• Solar PV (Rooftop PV, Solar Farm, Floating Solar PV) ELECTRICITY DEVELOPMENTS
• Wind (on-shore and off-shore) Interconnections of electricity transmission in Sumatera Sumatera, Java,
• Biomass, Biogas and Biofuel Kalimantan and Sulawesi can be started after 2025, and promote smart grid
• Geothermal (including small-scale) development.
• Hydro (including pumped storage)
DEMAND STRATEGY|
• Ocean Energy
• Nuclear Energy Efficiency for household
Stop importing fuel and LPG up to 2030
• Hydrogen appliances using Minimum Energy
(GSEN) Performance Standard (MEPS)
• Battery Energy Storage System (BESS)
100% sales of electric motorcycle in Biodiesel utilization is maintained at
REDUCTION OF FOSSIL ENERGY RESOURCES UTILIZATION
2040 and electric cars in 2050 (GSEN) 30%
• Implementation Co-firing Biomass Coal-Fired Power Plant (CFPP)
Program City gas penetration up to 10 million Encouraging energy transition using
• CFPP and Combined Cycle Power Plant (CCPP) are retired according to households in 2030 (GSEN) and electricity intensification for transport
age (the last CFPP retired 2056, the last CCPP retired 2055). projected up to 23 households in 2060 sector and gas for industrial sector
• No new CFPPs, except for it has Power Purchase Agreement (PPA) or Electric or induction cook-stoves
under construction penetration (1.4 million household/year Shifting from private vehicle to public
• Conversion of diesel PP into NRE power plants in average) transport

*) Long-Term strategy on energy sector areas still being modeled and simulated

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PROJECTION OF POWER GENERATING CAPACITY TOWARDS NZE
Per capita electricity consumption, final energy intensity and CO2 emissions are barometers of reflection for Indonesia's future

❑ Electricity production in 2060 will 700 700

OIL
be supplied from renewable
600 600 TIDAL
energy plants of 635 GW.
WIND
❑ The generation mix in 2060 is

GWH (BESS, PS, HYDROGEN)

500 500 SOLAR
100% NRE with the composition:
HYDRO
398 GW Solar Power Plant, 82 GW 400 400 GAS
Hydro Power Plant, 41 GW Wind

GW
BIO
Power Plant, 35 GW Nuclear 300 300
GEO
Power Plant, 43 GW Biomass PP,
COAL
18 GW Geothermal PP, 18 GW 200 200
NU
Ocean Current PP
100 100 HYDROGEN
❑ Energy storage technology: pump
BESS
storage, Battery Energy Storage 0 - PS
System (BESS), and hydrogen fuel 2021 2025 2030 2035 2040 2045 2050 2055 2060
cell starts to be massively used
SCENARIO
after 2035 1. Coal Power Plant and Gas Power Plant will be retired according to the contract (the rest < 1 GW: Coal PP 2052, Gas PP: 2050)
❑ Nuclear plants will enter around 2. There are no additional Coal PP except those that have been contracted or under construction
2045 to maintain system 3. Additional generation after 2030 only from NRE
reliability, in 2060 the total 4. NRE-based power plants starting in 2035 are dominated by Variable Renewable Energy (VRE) in the form of Solar PP, followed by Wind
capacity of nuclear power plants PP and Ocean Current PP in the following year.
5. The use of BESS is increasing along with the massive VRE
will reach 35 GW.
6. Hydrogen will begin to be used gradually in 2031 but will only be massive in 2051
7. Geothermal utilization is maximized up to 75% of resources
8. Utilization of hydropower resources is maximized and electricity is sent to load centers on other islands, besides that hydropower plants
also provide balancing for VRE plants.
9. Nuclear power plant starting in 2045 with a small scale then increased by 35 GW untill. 2060

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 NZE TERMS: SUPER GRID FOR SHARING NRE RESOURCES
Sabang
2026
Disclaimer: Colour Line: Line Type:
Temporary simulation, 70 kV
subject to change 150 kV
Existing
275 kV
Plan
ASEAN 500 kV
NZE
Bintan

2026

1. Overcome the mismatch between local renewable energy sources vs high demand
locations 5. The interconnection configuration can be drastically reduced if the
2. Reduce the intermittency impact of the increasingly massive VRE generator development of industrial estates leads to Renewable Energy Based
3. Private participation is needed because the capacity of State-Owned Enterprises and Industrial Development (REBID)
the State Budget is limited 6. Nusantara Grid needs to start after 2025
4. Transmission availability drives power wheeling implementation. 7. The lowest Super Grid backbone transmission voltage is 500 kV
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 OPPORTUNITY IN NRE DEVELOPMENT
The price of NRE in the world continues to decline so
that it can be competitive with fossil energy
Based on the McKinsey report (2019), the price of NRE will
be cheaper than fossil prices in most countries in the world
by 2030.

New renewable energy utilization technologies are

developing all the time.
The development of new technologies, such as hydrogen
(fuel cell) and small-modular reactor (SMR) will make the
utilization of the abundant potential of renewable energy
more optimal.

Green Financing is starting to become the

mainstream of infrastructure financing in the world
As a result, funding portfolios for new renewable energy
plants, which are green, will be easier to obtain.
Kick Off Ceremony of the 145 Mwac Floating PLTS Project
at the Cirata Hydro Power Plant. Electricity Sale and
Purchase Agreement agreed at a price of 5.8 USD/kWh
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 CHALLENGES
Energy transformation will require large
funding, incentives, improvement of
supporting infrastructure and human
resources with high skills and competencies.
For intermittent renewable energy
generation to operate properly, it requires a
high additional investment. For off-grid
systems, reliable power storage technology
is needed, while for on-grid systems, a back-
up generator is required.
The network system's ability to absorb
electricity from new and renewable energy
power plants is still limited. It would require an
additional investment to upgrade power system
reliability and flexibility.
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Renewable energy business is considered
less attractive with high risk, as the result
banks / financial institutions are less
interested in providing funding with long
tenors and low interest.
Lack of availability of low-cost technologies
suited to local conditions and dependency
on imported technology.
Requires policy support at the national, sub-
national and international levels, including
public participation.
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DRAFT PRESIDENTIAL REGULATION ON RE POWER
PURCHASING BY PLN
FiT Price with no Location Factor for Hydro
04
FiT staging 2 no excalation phase, location factor is valid
for Staging 1: PP, PV , Wind PP built entirely by State
Budget/State Budget/Grant
01
• Hydro PP (including Hydro PP reservoir) for capacity up to 5
MW
• Solar PV and Wind PP for capacity up to 5 MW HPT with no Location Factor for Geothermal,
Hydro PP, PV and Wind PP built partially by State
05
• Biomass PP and Biogas PP for capacity up to 5 MW
• Solar PV and Wind PP expansion for capacity up to 5 MW Budget/State Budget/Grant and Biomass PP,
• Biomass PP and Biogas PP expansion for capacity up to 5 Biogas PP and Waste PP built entirely by State
MW Budget/State Budget/Grant
Ceiling price (HPT) staging 2 no excalation phase, location
factor is valid for staging 1:

06
• Geothermal PP for all capacity The agreement price requires the approval

02 • Hydro Power Plant (including Hydro Power Plant reservoir) from the Minister of EMR
for capacity>5 MW
• PV and Wind PP >5 MW
• Biomass PP and Biogas PP for capacity >5 MW

07
The provision of electricity purchase price
• PV and Wind PP expansion >5 MW
is evaluated 3 years at the most.
• Biomass PP and Biogas PP expansion >5 MW
• excess power Geothermal, Hydro, Biomass, Biogas PP all
capacity.

08
In the event the evaluation resulting in price

03
Agreement Price: change, the provision of price change is
• Hydro Power Plant Peaker for all capacity regulated by Ministerial Regulation.
• Waste PP,Biofuel PP, Sea Energy PP for all capacity

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 CLOSING

01 Indonesia is committed to achieve the 23% new and renewable energy target by 2025 as
mandated by the National Energy Policy as well as Paris Agreement.
Furthermore, the Government will take a systematic and massive efforts in order to
achieve Sustainable Low Carbon Development by 2050.

02 Efforts towards energy transformation will prioritize national interests

while taking into account the availability, accessibility, affordability,
sustainability & competitiveness of the energy sources.

03 Policy improvement will be the key to support the acceleration of energy

transition, including but not limited to NRE Law, Presidential Regulation on
RE Purchasing by PLN, and other related
implementation policies.

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 Thank You

Address
Jl. Pegangsaan Timur No.1, RT.1/RW.1,
Pegangsaan, Kec. Menteng, Kota
Jakarta Pusat, Daerah Khusus Ibukota
Jakarta 10320

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