Energy Efficiency in Indonesia

Energy Efficiency

in Indonesia

Challenge and Opportunities

November, 2013

Dr. Ir. Judianto Hasan

APKENINDO CHAIRMAN

Concise Profile of Indonesia

Land Area : 1,910,931.32 Sq Km Population (2011) : 241,133,700 Households : 60,283,430 GDP per capita : Rp. 30,800,700 (2011) Energy Production (2011): Crude Oil : 329,265,000 Barrels Natural Gas : 2,890.92 BSCF Coal : 353,270.94 Thousand Tonnes Hydro Power : 42,658,902.81 GWH Output Geothermal : 68,610.11 Thousand Tonnes of Geothermal Steam

Indonesian ESCO Association www.apkenindo.com

Source : Handbook of Energy & Economic statistic of Indonesia 2012

Share of Energy Consumption in Indonesia (2011)

Industry

Household

Building

Transport

Other

Non Energy

Household 26.37 %

Industry 29.61 %

Transportation 31.07%



Decoupling Growth and Energy Consumption

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2000 2002 2004 2006 2008 2010

In '000 BOEIndustry

In '000 BOEhouse

In '000 BOECommerc

In '000 BOEtransp.

In '000 BOEothers

In '000 BOETotal

0

500000

1000000

1500000

2000000

2500000

3000000

1 2 3 4 5 6 7 8 9 10 11 12

Energy Consumption



GDP

5

3 reasons for EE Implementation

Competitiveness

•Reduce emissions •Improve life quality •Contribute to international climate responsibilities

• Reduce dependency of energy imports • Reduce exposure to oil price volatilities

•Enhance industrial competiveness

Sustainable Development Security of supply

Source : REEEP


Growth and Energy Efficiency

• Energy Consumption is relatively price-inelastic, so that energy use is mostly a necessity.

• The shift from less efficient and more polluting energy options may establish stimulus to economic development.

• Combination of EE and diversification for the energy resilience


EC & EE Invesment Opportunities

• Medium and High cost EE investment : CHP, WHRG in Energy intensive industry


Cement Plant

Chemical/Petrochemical Plant Iron/Steel Industry

EC & EE Investment Opportunities cont.

• EE improvement (process) : COGEN, high efficiency boilers, preheaters, etc.

Sugar Industry Pulp n Paper Superblocks/ Commercial Buildings


EC & EE Investment Opportunities cont.

• Energy Management and Control Systems

Shopping Malls Airports Residential Apartments


Barriers to EE Implementation

• Lack of Knowledge

The concepts of performance contracting are relatively new to

many commercial and industrial energy users in Indonesia

• Limited Information : Meters, Monitoring, EMS

lack of internal communication.

• Procurement system : multi years and budget.

• Financial Support : banking system and regulation

• High Interest rates


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ESCO Development In Indonesia

Energy Audit/

Consultancy

Awareness

Capacity Building

Organization Establishment

Finance Pilot Projects

Initial stage Development Stage

A growing stages

Esco Scheme

M & V

Market Promotion & Development Regulation

Contract


2004 2013

Excellent Energy International Co. Ltd (Thailand)

http://ja.wikipedia.org/wiki/%E7%94%BB%E5%83%8F:Flag_of_Japan.svg

Programs

• Organization est in 2011

• Start with 14 companies now 20 companies

• Introduction of ESCO in Indonesia

• Engaged in many EE promotion activities

• Initiate small scale ESCO project initiation


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)

PT. INDRA KARYA (PERSERO)

P.T. METROPOLITAN

BAYU TAMA

RANGE OF PRODUCT / SERVICE APKENINDO MEMBER

Asosiasi Perusahaan Penunjang Konservasi Energi Indonesia (Apkenindo) Indonesia Supporting Company Association for Energy Conservation

(Indonesia ESCO Association)

PROPOSED BY APKENINDO

Apkenindo member continues increase during one year (included Multinational Companies affiliation), have developed range of product and service. In 2012 Apkenindo external rules become more strategically after involved as the Regulator FDG (Focus Discussion Group), Peer Review of International EE Funds and International NGO dedicated on CE /EE issues Apkenindo continues participating to promote ESCO in many EE Stake Holder forum as well catalyzing EE Project implementation

Programs

• Capacity Building and Technical guidelines Development.

• Preparation of standard contract form

• M & V protocols

• Improving Financial Network

• Strengthening of Organization Capability

• ESCO certification


EE Workshop – ECCJ, Japan Sept 2012 Discussion with NAESCO in New York 2012

Capacity Building , Workshop EE Development Project Bali, Maret 2013

EE Implementation Improvement

• Guaranteed saving

• Help to improve energy efficiency business climate

• Foster cooperation with ESCO organizations from all over the world.

• Help improve regulation concerning EE implementation

• Improve financial support from local and international financial institution.


Financial Support

• Revolving Fund

• Tax incentive for ESCO company

• Credit guarantee program


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Thank you for your attention!

www.apkenindo.com

Energy Efficiency in Indonesia

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