7. DJK EBTKE Connect USAID Jumat

DIRECTORATE OF ELECTRICITY
MINISTRY OF ENERGY AND MINERAL RESOURCES

GOVERNMENT POLICY TO ACCELERATE RURAL ELECTRIFICATION
(How do we go forward to implement the solar PV diesel genset hybrid power for
micro/mini grids in indonesia (Solar PV-diesel genset hybrid)

15 September 2017

I

Government Policy

PRESIDENT JOKOWI’S NAWACITA (NINE DREAMS)
Bringing back the government to protect the nation & bringing
safety to all citizens by implementing free & active international
politics
Building a clean, effective, democratic and trusting governance

Building Indonesia from the periphery by strengthening outer
regions and villages in a unitary nation framework

Rejecting a weak nation by reforming the system and building a
corruption-free, dignified and trusted law enforcement
Improving Indonesian’s quality of life by Smart Indonesia program
with 12 year compulsory education free of charge; Healthy
Indonesia program with health service enhancement; Work
Indonesia and Prosperous Indonesia program by endorsing 9
million ha land reform
Enhancing productivity and competitiveness in the global market

Actualizing an economic independence by driving strategic
economic and domestic sectors
Revolutionize the nation’s character by reorganizing the national
education curriculum
Adhering “bhinneka” (unity in diversity) and strengthening
Indonesian social restoration by reinforcing “bhinneka” & creating
an active dialogue between various social groups

Government Commitment

to reduce GHG emission by the year of 2020


26%

Self efforts

(767 M Tons)
Pres Reg No. 61/2011
NAP-GHG
Forestry, Peat, Agriculture

41%

Self efforts and
international support

Pres Reg No. 71/2011
GHG Inventory and MRV

680 M Tons


Energy Sector

30 M Tons

Waste

48 M Tons

Industry and Transportation

9 M Tons

By development of
NRE and the
implementation of
energy conservation
from all sectors

4


Directorate of Electricity
Ministry Of Energy and
Mineral Resources

MANAGEMENT OF ELECTRICITY SUPPLY IN INDONESIA
(Law No. 30/2009 on Electricity)

AUTHORIZATION



STATE
GOVERNMENT
REGIONAL
GOVERNMENT

Regulation, policy, standard
Provides funding for:
 Low income society
 Development of electricity supply infrastructure

in undeveloped regions
 Development of electricity in remote and border
areas
 Development of rural electricity

BUSINESS
ELECTRICITY BUSINESS LICENSE HOLDER
STATEOWNED
ENTERPRI
SE*

REGIONOWNED
ENTERPRIS
E**

PRIVATE
ENTITIES
**

COOPERATIV

ES**

SELFRELIANT
COMMUNITIE
S**

* : First Priority
** : Given the opportunity as integrated
electricity business license organizer for
not electrified areas

5

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

GOVERNMENT POLICY ON
ELECTRICITY SECTOR


1 ELECTRICITY

PROSPEROUS
SOCIETY
MATERIAL
EQUITABLE
SPIRITUAL
EQUITABLE

DEVELOPMENT

NATIONAL
DEVELOPME
NT
OBJECTIVES

NAWA
CITA

ELECTRICITY


Available:
 Sufficient
 Good quality
 Reasonable
price

2 UTILIZATION OF PRIMARY
ENERGY
SOURCES Continuous
NEP  Optimalization
Determination

NRE Priority

ELECTRICITY

AVAILABILITY
GUARANTEE


Domestic Sources  National Interest
NEP: National Energy Policy

6

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

LEGAL BASIS OF POWER SUPPLY
PLANNING

LAW
LAW 30/2009
30/2007
(ELECTRICITY)
(ENERGY)
GR 79/2014
(NATIONAL ENERGY POLICY - KEN)


• An energy management policy based on the principles of
justice, sustainable, and environmentally-friendly in order to
create energy independence and national energy security
• Prepared by the National Energy Council
• Stipulated by the Government after the approval of Parliament

General Plan of National Energy
(RUEN)

• The central government policy on the
national level energy management
plan as an elaboration and the
implementation plan of KEN using
multi-sectoral approaches in order to
achieve the target of KEN.
• Prepared by the Government and
stipulated by National Energy Council

General Plan of Local Energy
(RUED)

Prepared by the local government based
on RUEN and stipulated under the local
regulation.

GR 14/2012
jo GR 23/2014
(Business Activities of Electricity
Provision)

General Plan of National
Electricity (RUKN)

• A plan for developing electricity supply
system prepared by the central
government which includes power
generation,
transmission
and
distribution required to meet national
electricity needs.
• Prepared by the Minister based on KEN.
• Stipulated by the Minister after
consultation with Parliament.

Business Plan for Electricity
Provision (RUPTL)
(RUPTL PLN: MEMR Decree No.
1415 K/20/MEM/2017)

• As a basis for implementing the electricity
supply business for public interest
• Prepared by electricity business who has
General Plan of Local Electricity
special business areas
(RUKD)
• Prepared by taking into account the
Prepared by the local government based on
Electricity General Plan*)
RUKN and stipulated by the Governor after

Approved by the Minister/Governor in
consultation with Local Parliament.
with their authority.
*) Electricity General Plan consists of General Plan of National Electricity andaccordance
General Plan of Local Electricity

7

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

POLICY ON POWER GENERATION – ENERGY MIX

REALIZATION 2013

6%

23
%
41%

30%

TARGET 2025
PRIMARY ENERGY MIX
(Electricity and Non Electricity)
(National Energy Policy, GR No.79/2014)

REALIZATION 2014

23%

22%

30%

25
%

TARGET 2025

12%
53%
11
%

24
%

ENERGY MIX OF POWER GENERATION
(Draft of RUKN 2015-2034)

25%
50%
24%
1%

REALIZATION 2015

TARGET 2026

10,47%
56,06%

200
TWh

24,89%

8,58%

NRE
Oil
Gas
Coal

0.39%

ENERGY MIX OF POWER GENERATION
(Draft of RUPTL PT PLN (PERSERO)
2017-2026)

50.44

562
TWh

26.72
%

22.45
%

8

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

II

Indonesia’s Electricity Condition & Challenges

9

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

NATIONAL ELECTRIFICATION RATIO

• National electrification ratio is 92,80% in
semester
2017.
• There are 2 provinces (NTT and Papua) having
electrification ratio lower than 70%.
• Indonesia’s electrification ratio is still low (92,80%)
compared to other ASEAN countries.
• Target of electrification ratio: 97.35% by 2019 (RPJM)
and 100% by 2024 (RUKN).

ELECTRIFICATION RATIO IN ASEAN COUNTRIES

1st

Persen (%)

92,8
0

NATIONAL ELECTRIFICATION RATIO IN 2017 (%)
KALTIM
ACEH

99.09

96.85
SUMUT

JAMBI

KALTARA

GORONTALO

91.38

86.23

89.08

97.60
KEPRI
RIAU

KALBAR

76.97

91.86

SULTENG

87.88

NASIONAL
SULUT

MALUT

92.47

99.05

92.80%

83.47
PABAR

89,84

BABEL

PAPUA

100.00

48.74

SULBAR

83.76

SUMBAR

DKI JAKARTA

87.55

97,89

JATENG

94,50

KALTENG

KALSEL

75,76

90.50

BENGKULU

MALUKU

87.50
SULSEL

93.80

94.77

SULTRA

76.79

SUMSEL

85.93
LAMPUNG

89.75

JABAR

99.47

BANTEN

INFORMASI

JATIM

DIY

89.63

90,65
BALI

NTB

NTT

79.93

59.17

94.42

100.00

> 70
50 - 70
< 50

10

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

NATIONAL ELECTRICITY CONSUMPTION PER-CAPITA

• Electricity consumption (kWh) per-capita of Indonesia is always increased but still
considered low – only 979 kWh in 1st Semester 2017.
• Compared to other ASEAN countries, kWh per-capita of Indonesia is lower than Singapore,
Malaysia, Thailand, and Vietnam.
• Target of kWh per-capita: 1,200 kWh by 2019 (RPJM), 2,764 kWh by 2030 (RUKN), and
3,347 kWh by 2034 (RUKN).
Electric Consumption per-Capita in ASEAN Countries
10,000
9,000

Electricity consumption per-capita in Indonesia
Target

Realization
9,145.5
8,690

1,200
1,129
1,058 *)

kWh per capita

8,000

956

7,000
6,000
5,000

4,754.8
4,345

698

737

792

840

878

918

4,000
3,000

2,465 2,584.3
1,795.0
1,273

2,000
1,000

979*
73
0

0

Singapore Malaysia

Thailand

672 809.0

Vietnam Indonesia Philippines

Source:
• 2012 data: World Bank, http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC
• 2015 data: Bienvenido S. Oplas, Jr. (July 2016)
* Indonesia: 1st Semester 2017

2012

2015

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
*) 1st Semester is 979 kWh per-capita

11

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

2.500 VILLAGES WITHOUT ELECTRICITY IN INDONESIA

• 2.424 out of 82,190 villages across Indonesia have not had electricity (still in the dark).
• Out of 2.424 villages without having electricity, 2,110 villages are located in the Province of
Papua and 260 villages in the Province of West Papua.

• The government has a target to "Light on” of those two provinces by 2019.
Aceh
4

Sumut
2

Sumbar
1

Kalbar
10

Kalsel
3

INDONESIA 2016 : 2.424 Villages (2,95 %)

Papua Barat
260

Papua
2,110

Jambi
2

Number of Villages without Electricity
NTT
18

Sulsel
2

Sultra
5

Maluku
7

12

III

Electrification Program Based on RUKN and
RUPTL

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

CURRENT ELECTRIFICATION
PROGRAM
ON GRID

PLN

Grid extension

Generation: PLN
or Private/IPP

ELECTRIFICATION
PROGRAM

Group
Mini Grid

State equity
participation (PMN)

PLN/APBN/DAK/
DANA DESA

BUMN/BUMD/BUMDES
/PRIVATE

OFF GRID /
ISOLATED
Stand Alone

APBN

LTSHE

14
14

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

NEW STRATEGIES IN RUPTL 2017-2026

1. Rescheduling COD of power plant projects due to lower demand growths

compared to the previous RUPTL.
2. Optimizing the utilisation of local primary energies, such as mine mouth, gas
wellhead and renewable energy resources in order to reduce the production
cost, increase the economic value of local primary energies as well as
improve the efficiency of power transfer.
3. Accelerating the electrification ratio, particularly for the eastern Indonesia
Region by developing mobile power plant, PV, Hybrid system, and other RE
in offgrid system.
4. Arranging reserve margin at 30% minimum up to 2019. Particularly for
outside Java-Bali, the reserve margin could be much more than 30%.
5. Increasing level of local content in material and service procurement for

generation, transmission, substation and distribution projects.

15
15

Network Planner Program
• Least-cost analysis

• Selects supply for each settlement with lowest present value cost
• Calculates life-cycle cost of supply for each settlement using PV mini-grids
and SHS.
• Determines the maximum grid length from nearest settlement with grid
suppl such that grid e te sio is least cost
Ma
• Compares mvMax to actual grid extension required. If actual grid extension
is less than mvMax, then grid extension selected. Otherwise, the less costly
of the mini-grid or SHS is selected

• Principal inputs





Location and population in each settlement
Demand forecast
Existing 20 kV network
Costs and performance of each supply option

Roof top tag &
settlement aggregation

Existing 20kV grid &
parameters (from PLN)

Least-Cost
Electricity Selection

Grid extension
plan

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

Renewable Energy (RE) Development Plan
and Potential RE Projects 2017-2026
Indonesia
No
1
2
3
4
5
6
8

Reg. Kalimantan
No
1
2
3
4
5
6
7
8

Pembangkit - EBT
GeoPP
HEPP
Micro HEPP
Solar PV
Wind Power
Biomass/Waste
PLT Kelautan
Bio Fuel
Total

Kapasitas
MW
MW
MW
MWp
MW
MW
MW
Ribu Kilo Liter
MW

Jumlah
10
150
41
830
201

Potensi
1,804
12
30

Pembangkit - EBT
GeoPP
HEPP
Micro HEPP
Solar PV
Wind Power
Biomass/Waste
Bio Fuel
Total

Kapasitas
MW
MW
MW
MWp
MW
MW
Ribu Kilo Liter
MW

Jumlah
6,290
8,846
1,694
57
570
597
6,572
18,053

Potensi
6,869
752
315
1,028
175
9,389

1,846

Reg. Sumatera
No
1
2
3
4
5
6
7
8

Pembangkit - EBT
GeoPP
HEPP
Micro HEPP
Solar PV
Wind Power
Biomass/Waste
PLT Kelautan
Bio Fuel
Total

Kapasitas
MW
MW
MW
MWp
MW
MW
MW
Ribu Kilo Liter
MW

Jumlah
3,305
4,284
983
5
274
411
8,851

Potensi
1,193
752
59
200
135

Reg. Sulawesi & Nusa Tenggara

2,339

Reg. Jawa-Bali
No
1
2
3
4
5
6
8

Pembangkit - EBT
GeoPP
HEPP
Micro HEPP
Solar PV
Wind Power
Biomass/Waste
Bio Fuel
Total

Kapasitas
MW
MW
MW
MWp
MW
MW
Ribu Kilo Liter
MW

Jumlah
2,510
4,562
437
250
206
439
7,965

Potensi

No
1
2
3
4
5
6
7
8

Pembangkit - EBT
GeoPP
HEPP
Micro HEPP
Solar PV
Wind Power
Biomass/Waste
PLT Kelautan
Bio Fuel
Total

Kapasitas
MW
MW
MW
MWp
MW
MW
MW
Ribu Kilo Liter
MW

Jumlah
400
221
52
170
21
4,423
864

Potensi
3,852
38
5
10
250
4,155

200
823

Reg. Maluku & Papua
No
1
2
3
4
5
6
7
8

Pembangkit - EBT
GeoPP
HEPP
Micro HEPP
Solar PV
Wind Power
Biomass/Waste
PLT Kelautan
Bio Fuel
Total

Kapasitas
MW
MW
MW
MWp
MW
MW
MW
Ribu Kilo Liter
MW

Jumlah
75
43
55
469
172

Potensi
20
6

26

1,023

Note:
RE Potential resources are not included in the RUPTL project list

17

ELECTRIFICATION PROGRAM 2017-2026*
1. Rekap Kebutuhan Fisik Program Listrik Perdesaan Tahun 2017 - 2026

2. Rekap Kebutuhan Anggaran Program Listrik Perdesaan Tahun 2017 – 2026 (Dalam Juta Rupiah)

*) Berdasarkan RUPTL PT PLN (Persero) 2017-2026

ACCELERATION OF INDONESIAN RURAL ELECTRIFICATION
Electrification program up to
50 MW capacity are given to :

Renewable Energy Usage

Underdeveloped rural areas
Isolated rural areas
International border areas
Small populated islands

Determining The Business Areas :
Mi ister’s authorit to deter i e hich
business area to develop based on each
Go er or’s proposal
Minister of Energy assigns companies that
already have Power Supply Business License
(IUPTL)
Governor proposes business area
Governor offers business area to
companies
Governors issues Power Supply
Business License (IUPTL)

Ministerial
Regulation No
38 Year 2016

Rural Electrification Acceleration Program
utilizes renewable energy (RE) as a
source of electricity.

Procurement Mechanism
Investment
Based o go er or’s proposal the
auctioned to corporations that
manage the business area
Assignment
Regional governments can assign
regional owned enterprise (BUMD) if
there are no interested investor

Tariff Mechanism
Subsidy
The government calculates the required
subsidy to be proposed to the
parliament (DPR)
Nonsubsidised with agreed tariff
Tariff is set by the Minister or Governor
based on their respective authority
Nonsubsidised with national’s tariff
PLN based tariff, regional government
ca ’t set the tariff

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

MEMR REGULATION NO. 50/2017 ON
UTILIZATION OF RENEWABLE ENERGY
FOR POWER GENERATION
GENERATION TYPE

Solar PV, WTPP, MH/HEPP, BiomassPP,
BiogasPP, WPP, GeoPP, & TidalPP

Direct Selection based on
Capacity Quota
ELECTRICITY PURCHASING
MECHANISM

RENEWABLE
ENERGY
SOURCES

Solar PV, WTPP

Direct Selection
MH/HEPP, BiomassPP,
BiogasPP, TidalPP

In accordance with the
provisions of the Laws and
Regulations
WPP, GeoPP

COOPERATION SCHEME

APPROVAL PRICE

Build, Own, Operate and Transfer
(BOOT)

Purchase of electricity required obtain the MEMR's
Approval

PLN Must Compile and Publish Standard Procurement
Document, Standard of PJBL, and Technical Guidance
Implementation of Direct Selection
PLN is obliged to operate the plant with capacity up to 10 MW continuously (must run)
POWER PURCHASE AGREEMENT
STANDAR

20

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

MEMR REGULATION NO. 50/2017 ON
UTILIZATION OF RENEWABLE ENERGY FOR
POWER GENERATION

Electricity purchase price: Solar PV, WTPP, BiomassPP, BiogasPP, TidalPP
E component based on B to B

Nation
al
Averag
e

Generation Cost in 2016
(cent USD/kWh)
MEMR Decree No. 1404
K/20/MEM/2017

21

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

CLOSING

• To utilise technology in development of power plants we shall consider the Government
policy/regulation, local resources, balance between supply-demand, and the readiness
of the system as well as the cost efficiency. (Optimization).
• Centralized PV would be developed to electrify isolated areas (undeveloped areas,
border areas and outermost islands) that relatively far from existing grids. Hybrid system
(PV, other RE, and Diesel PP) would also be developed for areas that still have less than
12 hours electricity, commonly in the eastern part of Indonesia

• Smart grid system will be developed to increase penetration of intermittent RE and
increase reliability of power system. Micro grid (usually using PV) will also be developed
for the areas where distribution lines will not be developed in 2-3 years ahead.
• The reduction of HSD and MFO utilization and encourage the utilization of biofuel.

• Participation of regional-owned enterprises, private, and cooperative in developing
electricity infrastructure in remote and isolated areas where PLN’s services are not yet
available is widely open to be offered.
• As an effort to address challenges in developing electricity infrastructure, the
government has issued some breakthroughs through some regulations. These
regulations can be reviewed in order to accommodate the current and future condition
and challenges.
22

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

THANK YOU

23

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

OTHER THINGS ARE REGULATED
THE ELECTRICITY PURCHASE AND THE
PRICE BASED ON THE PPA

SIGNED OF PPA
Solar PV PP, Hydro PP, Ciomass
PP, Biogass PP, Waste to Energy
PP and Geothermal PP

THE ELECTRICITY PURCHASE BASED ON
MINISTERIAL REGULATION BEFORE AND
THE PRICE BASED ON THIS MINISTERIAL
REGULATION

UNSIGNED OF PPA

OTHER
THINGS
ARE
REGULATED

Hydro PP, Ciomass PP,
Biogass PP, and Waste to
Energy PP

THE ELECTRICITY PURCHASE AND THE
PRICE BASED ON MR MEMR 17/2014

UNSIGNED OF PPA +
ASSIGMENT OF BUMN
Geothermal PP

UNSIGNED OF PPA +
ASSIGMENT OF BUMN

THE ELECTRICITY PURCHASE BASED ON MR BEFORE
AND THE PRICE BASED ON MR MEMR 172014

Geothermal PP
SIGNED OF PPA AND/OR
THE PPA WHICH IS
VERIFIED BY BPKP

THE ELECTRICITY PURCHASE AND THE ELECTRCITY
PRICE BASED ON MINISTERIAL REGULATION BEFORE

The authorization of Geothermal PP

11

24

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

OTHER THINGS ARE REGULATED..(2)

 The electiricty purchase after Ministerial of EMR Regulation No. 12/2007 was launched
Private Sector which have
accepted the agreement of
electricity
price
from
Ministry of EMR and have
not signed the PPA with PT
PLN (Persero)
 18 IPP
Tender based on capacity
quota Solar PV PP in
Sumatera is on going

Price is
Unchanged

 Tender process is on going
 The electricity purchase
based on Ministerial of EMR
Regulation No. 50/2017

Except for Private Sector and
PLN which are agree to follow
the Ministerial of EMR Regulation
No. 50/2017
25

Directorate of Electricity
Ministry Of Energy and
Mineral Resources

Electrification Program for Maluku
and Papua

26