26.09.2012 Seite 1 Page 1

The Climate Context of Bioenergy in

Indonesia: Options and Challenges

Bio-energy, CCS and BECCS: Options for Indonesia

Expert Meeting: Exploring International funding Mechanisms

Jakarta, September 22, 2012

Dr. Dieter Brulez

Coordinator Climate Change and Sustainable Development

Gesellschaft für Internationale Zusammenarbeit - GIZ

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Sector

allocations Forestry + Peat Agriculture

Power -

energy Transport Waste Industry

Actions

now

RPJM, sector strategic 5 year plans

REDD+

Mitigation targets compared to BAU in 2020:

without international support - 26%

with int. support

- 41% MRV international MRV domestic

National Action Plan on GHG emission reduction (RAN-GRK)

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Sector Emission Reduction

(Giga ton CO2e)

Total Action Plan

26% 15%

(Total 41%)

Forestry and Peat Land

0.672 0.367 1.039 • Forest and land fire control,

• Water network management,

• Forest (HTI, HR) and land rehabilitation,

• Illegal logging eradication,

• Avoidance of deforestation,

• Public empowerment.

Waste 0.048 0.030 0.078 • Waste and 3R management

• Integrated waste management in rural areas

Agriculture 0.008 0.003 0.011 • Intros low-emission rice varieties,

• Efficiency of irrigation water,

• Organic fertilizer

Industry 0.001 0.004 0.005 • Energy efficiency,

• Renewable energy utilization, etc

Energy and Transportation

0.038 0.018 0.056 • Biofuel utilization,

• High efficiency standard for oil engine,

• Quality of road and mass transportation,

• Demand Side Management,

• Energy efficiency,

• Renewable energy development

Total 0.767 0.422 1.189

GHGS EMISSION REDUCTION PLAN IN INDONESIA

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The RAN-GRK Process Sept 2011 until now

• Presidential Decree 61/2011 in September 2011 anounced

• Bappenas established RAN-GRK Sekretariat

• Capacity Building for all 33 Provinces took place in the first

6 months

• How to establish the dynamic baseline

• How to outline the plans, how to use the various models:

• Energy sector: LEAP model

• land-based sector: LUWES model

• Waste: Simple-model

• Provinces coordinate and set up their plans with

consultation of their respective districts (bottom up

approach)

Where are we now one year later?

• only 9 provinces have finished their plans

What is still needed?

• Review of the plans (correctness, gaps, next steps of

priority setting comparison, follow up actions)

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Challenges already foreseen:

• Very few energy related projects in the plan

• Energy efficiency options in industry do not

tap potentials

• Feasibility of many proposal are doubtful,

Relation to GHG Reduction targets speculative

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GIZ own estimates for biomass related energy projects

Sector Production Resources Power capacity

potentiala

Palm oil mills 20 million ton

CPO

Shell, EFB,

biogas from

POME

> 4500 MW

Sugar mills 35 million ton

crushed cane

Bagasse > 800 MW

Rice mills 68 million ton

paddy

Rice husk > 1500 MW

Tapioca

processing

220 plants ?

(capacity: 400 –

800 ton ?

cassava/day)

Biogas from

waste water

≈ 500 MW

a = own early estimation

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Waste to Energy: Example Palm Oil

FFibers 4.6 MW

Shells 2.7 MW

EFB 2.3 MW

Biogas 1MW

Electricity Generation Potential = 10 MWel

another 7 MW from waste in plantation

now 0.7 MW

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Technology Options

Biomass to Energy

covered lagoon with agitator

tank reactor with new catalyst

organic rankine cycle

HP steam turbine for bagasse utilization

dry fermentation

EFB gasification

cogeneration on and off grid

Steps to eco-efficiency in palm oil mills

Improved use in

Steam turbine

Biogas plant

CHP gas engine

LP cond. turbine

Condensing

Turbine

Power plant

All residues

ESCO, IPP

now Investment & operation by mill

Investment &

Operation by

ESCO, IPP 300 kW

1 MW

4 MW

10 MW

Attractive

Feed-in Tariff

Saving shells

& kWh from electricity comp

based on existing boiler technology

Example from Thailand (E3Agro Project)

Valid also for Indonesia

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Potential benefits

Streamlined procedures lead to reduced cost and

accelerated dissemination of RE

Reduced fossil fuels, increased energy security

Cost reduction for national utility PLN

Reduction of green house gas emissions

Better energy supply for rural areas

Higher productivity for agro-industry

Development of Indonesia’s RE sector

Job creation in the RE sector

Innovation and market development

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Why are the potentials not tapped?

No options and link made to reduce green house gas

emissions

No regulation and support procedures / incentives for

Agro-Industries are available to become more efficient and

to use their own waste

The ongoing consequences:

high energy production cost for industries and PLN, low

productivity of industries, low competiveness

Energy supply for rural areas is heavily based still on fossil

fuels and energy security is low

Indonesia’s RE sector nearly non-existent

Clever people start to export the waste to other countries

26.09.2012

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The Feed-in Tariff relates to PLN Generation Cost per Region

0 500 1000 1500 2000 2500 3000

Northern Sumatera

Southern Sumatera

Jamali

West Kalimantan

S&C Kalimantan

N & C Sulawesi & Gorontalo

S, SE, W Sulawesi

Maluku & North Maluku

NTB

NTT

Papua & West Papua

Rp/kWh Calculated from Statistics of PLN 2011

Only Jamali and southern

Sumatera region

have generation cost

below 1,000 Rp/kWh

Example:

Feed-in Tariff per KWh for

• Biomass between 975 – 1325 Rp.

• Municipal Waste 850 – 1398 Rp.

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Next steps in 2012 / 2013

• Min of Finance: Elaborate Financial Scemes

for the RAN-GRK Implementation

• Bappenas: Make the ICCTF fit for the

matching funds

• Provinces and Districts: Intergrate approved

plans into the budget plans

• Line ministries: provide additional

incentives to speed up implementation

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But is that enough? What could

be additionally done?

• Min of Finance: Outline an incentive sceme

based on the GHG Reduction and carbon foot

print reduction

• Ministry of Industry/ Min of Energy: Use

Voluntary partnership agreements between

Government and Industries to finance good

examples

• Donors: Finance pilot project for BECCS

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Terima Kasih