2014ENERGY EFFICIENCY IMPLEMENTATION TO REDUCE GHG EMISSION

1. Energy and Mineral Resources for People’s Welfare
HARRIS
Directorate of Energy Conservation
Directorate General of New Renewable Energy and Energy Conservation
Presented at:
WORKSHOP ON TECHNOLOGY TRANSFER FOR
LOW CARBON TECHNOLOGY IN INDONESIA
Jakarta, 4 November 2014
ENERGY EFFICIENCY IMPLEMENTATION
TO REDUCE GHG EMISSION

2. Energy and Mineral Resources for People’s Welfare
CONTENTS

3. Energy and Mineral Resources for People’s Welfare

4. Energy and Mineral Resources for People’s Welfare
The chart is based on Draft National Energy Policy
0.0
500.0
1,000.0
1,500.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
200
220
240
260
2009 2011 2013 2015 2017 2019
Economic Growth
Population Growth
Population (Million)
0
1000
2000
3000
4000
2009 2011 2013 2015 2017 2019
GDP(Trllion IDR)
2,177
3,943
6.1%
256
231
1.1%
Energy (Million BOE)
712
1,316
7.1%
Energy Growth
ENERGY DEMAND CONTINUE TO INCREASE

5. Energy and Mineral Resources for People’s Welfare
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Intensitas EF 366 370 352 360 364 340 327 327 302 321 343 339 336
Intensitas EP 523 535 531 545 527 512 487 487 473 470 509 502 497
366 370
352 360 364
340
327 327
302
321
343 339 336
523
535 531
545
527
512
487 487
473 470
509 502 497
-
100
200
300
400
500
600
BOE/BillionRupiah
Note:
- exclude biomass and non-energy used
- *) temporarily data on December 2013
PE Intensity
FE Intensity
*)
PRIMARY AND FINAL ENERGY INTENSITY

6. Energy and Mineral Resources for People’s Welfare
Sector
Energy
Consumption Per
Sector Year 2012
(Million BOE) *)
Potential of EC
Target of Energy
Conservation
Sectoral (2025)
Industry 305 (39,7%) 10 – 30% 17%
Transportation 311 (40,4%) 15 – 35% 20%
Household 92 (12%) 15 – 30% 15%
Commercial 34 (4,4%) 10 – 30% 15%
Others
(Agriculture,
Construction, and
Mining)
26 (3,4%) 25% -
source: Draft National Energy Conservation Master Plan (RIKEN) 2011
Note:
- exclude biomass and non-energy used
- *) temporarily data on December 2013

7. Energy and Mineral Resources for People’s Welfare
• National Commitment to reduce the GHG Emission in 2020
26%
(767 mln Ton)
41%
(26%+15%)
Own efforts
Own efforts and
international support
Through the development of
new renewable energy and
implementing energy
conservation by all sectors
Presidential Reg No. 61/2011
RAN-GRK
Presidential Reg No. 71/2011
GHG Inventory and MRV
Global Warming and Climate Change has been a Hot Issue
NATIONAL COMMITMENT TO REDUCE GHG EMISSION

8. Energy and Mineral Resources for People’s Welfare

9. Energy and Mineral Resources for People’s Welfare
MINERAL & COAL
OIL &GAS
NRE&EC
• Mandatory of Energy Management in energy-intensive industry (10.16 mill ton CO2)
• Partnership in Energy Conservation - 1303 buildings & industry (2.11 mill ton CO2)
• Energy Efficient Appliances 21,43 GWh (10.02 Million ton CO2)
• PLTMH 130,4 MW (0.61 Million ton CO2)
• PLTM 692 MW (3.25 Million ton CO2)
• PLTS 326.78 MW (0.29 Million ton CO2)
• PLTB 59.2 MW (0.06 Million ton CO2)
• PLT Biomass 16.9 MW (0.01 Million ton CO2)
• DME 700 villages (0.18 Million ton CO2)
• Biogas 31,400 unit (0.13 Million ton CO2)
• 657.83 MMSCFD gas for public transport in 9 cities & 21.16 ton LGV/day
in 2 cities (3.07 Million ton CO2)
• City Gas for 94,500 household in 24 locations (0.15 Million ton CO2)
• Mini LPG Plant 2.2 MMSCFD (0.03 million ton CO2)
26.82 million
ton CO2
3.25 Million ton CO2
2.73Million ton CO2
Post-mining reclamation 72,500 ha (2.73 Million ton CO2)
TOTAL
32.8
Million ton
CO2
GHG EMISSION REDUCTION TARGET IN ENERGY SECTOR

10. Energy and Mineral Resources for People’s Welfare
NO MITIGATION ACTION
2010 - 2012 2013
Unit
Emission Reduction
(ton CO2e)
Unit
Emission Reduction
(ton CO2e)
1 Mandatory in Energy Management 4 Companies 309.911,26 0 309911.26
2 Partnership Program on Energy Conservation 452 objects 740000 159 objects 781,400
3 Energy Efficient Appliances 855,81 GWh 703753.25 1681.94 GWh 1.384236.62
4 Renewable Energy Development 654458.57 1125754.77
5 Biogas Utilization 1445400 m3 12673 4615337.4 m3 20056
6 Gas for Public Transport 10 MMSCFD 46400 10 MMSCFD 92800
7 City Gas 57448 SR 1900 15623 SR 3500
8 Mini LPG Plant 0 0 0 0
9 Post-Mining Reclamation 25.351,7 Ha 953221.5 6856.34 Ha 1211019.9
10 Biodiesel Utilization 669.398 Kilo Liter 1072376
1048422 Kilo
Liter
1567468
11 Presidential Instruction No. 13/ 2011 on Energy and Water
Saving
34.62 GWh 25.65 30.76 GWh 23316.18
12 Mitigation Action in Electricity Sector
 Large Hydro PP 3.7 MW 5500.82 0 5500.82
 Clean Coal Technology 1525 MW 141739.19 0 141739.19
 Cogeneration 511.86 MW 1465593.58 147.86 MW 1.465593.58
13 Kerosene to LPG Conversion Program 3905931 Ton LPG 17679475.70
3274594 Ton
LPG
19929457.88
TOTAL
23763852.50
(79.21%)
28062906.14
(93.54%)
GHG EMISSION REDUCTION 2010-2013

11. Energy and Mineral Resources for People’s Welfare
-
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EmissionReduction
(MilliontonCO2)
Total Emission Reduction from Energy Sector Emission Reduction from RAN-GRK Activities RAN-GRK
GHG EMISSION REDUCTION FROM ENERGY SECTOR
TARGET VS OUTCOME 2010-2013

12. Energy and Mineral Resources for People’s Welfare

13. Energy and Mineral Resources for People’s Welfare
Oil
42%
Coal
34%
Gas
21%
NRE
3%
21%
27 %
48%
4 %
NRE
Gas
Coal
Oil
2011 2015 2020
2025
ENERGY
CONSERVATION
ENERGY
DIVERSIFICATION
BAU Presidential
Regulation
No. 5/2006 NEP
23 %
30%
25%
22%
2932
Million BOE
1237
MillionBOE
Oil
20%
Coal
33%
Gas
30%
NRE
17%
3200
Million BOE
20%
30%
33%
17%
48%
Oil
27%
Coal
21%
Gas
4%
NRE
25%
Oil
30%
Coal
22%
Gas
23%
NRE
2419 MBOE
1649 MBOE
20,6%
34.6%
41.7%
3,1%
5102
Million BOE
Target in Energy Conservation year 2025:
- Energy elasticity < 1
- Reducing the energy intensity 1% per year
NATIONAL POLICY DIRECTION BASED ON PRESIDENTIAL
REGULATION. No.5/2006
AND NATIONAL ENERGY POLICY (NEP)

14. Energy and Mineral Resources for People’s Welfare
1982
1995
2006
POLICY ON
ENERGY CONSERVATION 2007
Presidential Instruction No. 9/1982 concerning on Energy Conservation
Master Plan of National Energy Conservation
Law No. 30/2007 concerning on Energy
2008
Presidential Regulation No. 5/2006 concerning
on National Energy Policy
2009 Govt. Regulation No.70/2009 concerning on Energy Conservation
2002 Law No. 28 / 2002 concerning on Building
Presidential Instruction No. 2/2008 concerning on Energy
and Water Saving
2011 Presidential Instruction No. 13/2011 concerning on Energy and Water
Saving
2012 & 2013 Ministry of EMR Regulation concerning on Energy and Water Saving
• Ministry of EMR Regulation No. 13/2012 concerning on Electricity Usage Saving
• Ministry of EMR Regulation No. 14/2012 concerning on Energy Management
• Ministry of EMR Regulation No. 15/2012 concerning on Water Usage Saving
• Ministry of EMR Regulation No. 01/2013 concerning on Control of Subsidized Fuel Utilization
Ministry Of EMR Decree No. 4051K/07/MEM/2013 concerning on Catur Dharma Energi

15. Energy and Mineral Resources for People’s Welfare
“Everyone is entitled on
energy”
(Article 9.1)
“Government, local government,
private and public entities are
responsible in energy
conservation” (Article 25)
Government and/or local government
will provide energy through
diversification, conservation and
intensification of energy and energy
resources” (Article 20)

16. Energy and Mineral Resources for People’s Welfare
RESPONSIBILITIES OF
GOVERNMENT, LOCAL
GOVERNMENT, PRIVATE
AND PUBLIC
IMPLEMENTATION
OF ENERGY
CONSERVATION
STANDARD &
LABEL
FACILITIES,
INCENTIVES AND/OR
DIINCENTIVES
MONITORING AND
GUIDANCE
43 5
Gov’t Reg. No.70/2009 on
ENERGY CONSERVATION
1 2
Energy users with energy consumption ≥ 6.000 TOE per
year is obliged to implement energy conservation through
energy management:
• Appoint energy manager;
• Develop energy conservation program;
• Conduct energy audit regularly;
• Implement energy audit recommendation;
• Report the result of energy conservation
Law NO. 30 / 2007
On ENERGY
The implementation of efficient
energy technology is through the
development and implementation of
standard and labeling on energy
appliances

17. Energy and Mineral Resources for People’s Welfare

18. Energy and Mineral Resources for People’s Welfare
ENERGY
CONSERVATION
PARTNERSHIP
PROGRAM
ENERGY
SAVING
CAMPAIGN
IMPLEMENTATION
SNI: ISO 50001
ENERGY MANAGER
AND AUDITOR
STANDARD
AND
LABELING
MAIN PROGRAMS ENERGY EFFICIENCY

19. Energy and Mineral Resources for People’s Welfare
4 stage rating system
EE level
Product model
Registration No.
 To Introduce Energy-Saving Rate as a Guide for Consumers
 Logo: “More Star, More Efficient”
SNI 04-6958-2003

20. Energy and Mineral Resources for People’s Welfare
Purpose:
• To limit the distribution of inefficient product.
• To limit the inefficient product import;
• To encourage importer and local manufacturer to make efficient
products;
MEPS for 2014:
MEPS for Refrigerator and Air Conditioning

21. Energy and Mineral Resources for People’s Welfare
• A regional cooperation coordinated by UNDP to support the
development and harmonization of EE standard and labeling for 6
(six) appliances: CFL, AC, Refrigeration, Fan, Ballast, Motor, and Rice
Cooker)
• Support the establishment 4 accredited test laboratorium (1 tes lab in
the process)
• Establish Forum for Test Laboratorium, consists of State and Private
Test Lab, MEMR, Ministry of Industry, Ministry of Trade, National
Standardization Body
BARRIER REMOVAL TO THE COST – EFFECTIVE
DEVELOPMENT AND IMPLEMENTATION OF ENERGY
STANDARD AND LABELING (BRESL)

22. Energy and Mineral Resources for People’s Welfare
 In continuation and inline with HCFC Phase-out Management Plan
(HPMP) for Indonesia, MEMR in cooperation with UNDP develop
PENHRA to improve energy efficiency of refrigeration and air
conditioning (RAC) equipment and appliances manufactured and sold
in Indonesia.
 Project aims to phase – out HCFC and introduce of alternative
technologies that will involve product redesign, technology conversion
including modification of production lines and processes, technical
assitance, trials and testing, training and certification.

23. Energy and Mineral Resources for People’s Welfare
LOW CARBON MODEL TOWN
 In 2013, Government of Indonesia decided to establish Bitung Special Economic
Zone at Tanjung Merah and Manembo-nembo District, as part of the Master Plan for
the Acceleration and Expansion of Indonesian Economic Development (MP3EI). The
Bitung Special Economic Zone is the area that will be developes as Low Carbon
Model Town .
 As a part of Government of Indonesia’s effort to implement energy efficiency program
and in the spirit of APEC cooperation, Indonesia would like to propose the city of
Bitung in North Sulawesi as the nominated LCMT project in 2015
 Several measures have been implemented by the City of Bitung related to the
implementation of low-carbon development, such as:
 Development of renewable energy power plants (Microhydro Power Plants, Geothermal PPs and
Photovoltaic PPs)
 Application of solar and wind power for public street lighting
 Issuance of Local Government Regulation regarding 30% green open space in commercial buildings
and residential areas, and
 Planting trees for reforestation

24. Energy and Mineral Resources for People’s Welfare
SMART STREET LIGHTING INITIATIVE
• Goals: to reduce GHG emissions by 425.000 tCO2e by 2020 (scaling up in 22 cities)
through improving levels of energy efficiency of public street lighting.
• Supported by GIZ under the “Policy Advice on Climate Change and Environment”
(PAKLIM)
• Registered as Indonesia’s NAMA Seeking Support for Implementation in the
UNFCCC’s NAMA Registry on May, 2014
• Measures in the SSLI:
 Increase the capacity of SSLI partner cities to manage energy efficient street lighting
 Develop financing proposals to finance more energy efficient street lights (i.e. LED) which endorsed
the city government
 Develop draft standards on product performance and safety for LED street light
 Develop Guideline on Energy Service company (ESCO) contracting for public street lighting
 Facilitate the meterization of streetlights
 Conduct demonstration projects of energy efficient street lighting in selected SSLI NAMA partner cities

25. Energy and Mineral Resources for People’s Welfare
SMART COMMUNITIES
 In the smart communities activity; Indonesia’s Ministry of Energy and
Mineral Resources through the Directorate General of New Renewable
Energy and Energy Conservation has signed a Memorandum of
Understanding (MOU) with the New Energy and Industrial Technology
Development Organization Japan (NEDO) concerning the
Demonstration Project for Smart Communities in Industrial Parks
on July 15th, 2013.
 This Demonstration Project is still in process to prepare document
implementation between electric state company PT. PLN (Persero) and
Japanese Consortium Company.

26. Energy and Mineral Resources for People’s Welfare
• Goal: to develop the capacity of industry in energy efficiency management
system integrated with energy optimization system approach and energy
management system standard ISO 50001. The targeted of industries include
4 (four) sub-sectors are: textile & garments, food & beverages, paper, and
chemical industries.
GOALS
APPROACH
 The introduction and improvement of the capacity of the Energy
Management System
 Increasing capacity in optimization system
 Increasing funding capacity to support the Energy Efficiency Project in
Industry
 Implementing Energy Management and Optimization System Project

27. Energy and Mineral Resources for People’s Welfare
BARRIERS ARE FACING IN ENCOURAGING MARKET TRANSFORMATION ON
ENERGY EFFICIENT TECHNLOGY/EQUIPMENT.
 Low energy price due to energy subsidy which is not only increasing a country’s financial burden
but also deterring the promotion of energy efficiency measures.
 Lack of energy saving awareness.
 Limited knowledge and understanding of the importance and benefits of energy conservation
implementation  to save 1 kWh is much cheaper and easier than to produce 1 kWh.
 High front investment cost for energy efficient technology.
 Lack of capacity in EE technology, including testing laboratories and certification bodies
 Lack of smart/innovative financing mechanism for energy efficiency projects.
 Lack of incentive for energy efficiency project.
 Lack of coordination among institutions in formulating financing and incentive regulations.
 Lack of regulation on ESCO engagement
5
• BARRIERS IN ENERGY
CONSERVATION DEVELOPMENT

28. Energy and Mineral Resources for People’s Welfare
www.konservasienergiindonesia.info