MINISTRY OF ENERGY AND MINERAL RESOURCES OF REPUBLIC OF INDONESIA

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

SOLAR PV FEED IN TARIFF IN INDONESIA :

REGULATION AND FRAMEWORK CONDITIONS

Directorat of Various New Energy and Renewable Energy

Berlin, March 4th, 2014

Energy and Mineral Resources for Peoples Welfare

I.

INDONESIA ENERGY CONDITION

II.

ENERGY POLICY

3
5

III. NATIONAL PRIMARY ENERGY MIX TARGET

IV. EFFORTS TO INCREASE NRE UTILIZATION

V.

POLICY OF SOLAR PV

VI. DEVELOPMENT OF SOLAR PV

VII. CURRENT STATUS ON ELECTRICITY TARIFF

OF SOLAR PV
VIII.OBSTACLES AND CHALLENGES
IX. CONCLUSION
Energy and Mineral Resources for Peoples Welfare

10
14
15

NRE
5,03%

Natural
Gas
24,29%

Coal
23,91%

1.

National energy mix on 2012: 1237 Million BOE.

2.

The average of growth rate of energy consumption is 7% per

year;

3.

High dependence on fossil energy (94,97%, but its reserves

are more limited);

4.

RE utilization and energy conservation implementation is not

optimized yet;

5.

Public access to energy (modern) is still limited:

a.

Crude
Oil
46,77%

b.

6.

Share of Non Fossil Energy 5%

7.

Electrification ratio of year 2012 is 76.47 % (23.53 % of

households not yet electrified);
Less of development of energy infrastructure particularly
in rural / remote areas and outer islands.

Linkage to environmental issues:

a. Mitigation of climate change;
b. National commitment to reducing emissions 26% by 2020.
Funding for energy development is limited.

Energy and Mineral Resources for Peoples Welfare

Aceh
89,75%

Category :

Sumut
88,71%

Kaltim
74,40%

Kepri
83,56%

Riau
85,45%

Kalteng
63,51%

Kalbar
75,62%

Sulut
80,24%
Gorontalo
65,37%

Sumsel
77,55%

Sumbar
78,84%

> 60 %

Sulbar
70,13%

41 - 60 %
Malut
76,75%

20 - 40 %
Papua Barat
62,97%

Sulteng
69,97%

Babel
97,96%

Jambi
72,39%

Jakarta
100%

Bengkulu
85,13%
Lampung
74,70%

Kalsel
79,96%

Bali
77,31%

Banten
87,04%
Jabar Jateng
79,05% 83,95%

DIY
79,59%

Sultra
61,99%
Sulsel
80,47%

Maluku
72,85%
Papua
35,17%

NTT
57,58%

Jatim
NTB
77,91% 62,04%
REALISASI

2006

2007

2008

2009

RENCANA

2010

2011

2012

Rasio Elektrifikasi 63.00% 64.34% 65.10% 65.79%

67.15%

72.95%

76.56%

Target RPJM

67.20%

70.40%

73.60%

Energy
andKesejahteraan
Mineral Resources
ESDM
untuk
Rakyat for Peoples Welfare

Sep-13 Des-2013
80.16%

2014

79.30%

81.40%

76.80%

80.00%

1. ENERGY CONSERVATION : to increase energy efficiency on

supply and demand side, e.g industrial sector, transportation,
household and commercial.
2. ENERGY DIVERSIFICATION : to increase the share of new
renewable energy use in the primary energy mix. e.g:
NEW ENERGY
a. Liquefied Coal
b. Coal Bed Methane
c. Gasified Coal
d. Nuclear
e. Hydrogen
f. Others methane

RENEWABLE ENERGY
a.
b.
c.
d.
e.
f.

Geothermal,
Hydro,
Bio energy,
Solar,
Wind,
Ocean wave and current.

Energy and Mineral Resources for Peoples Welfare

CURRENT CONDITION
2012

Oil
46.77%

2025 TARGET
PRESIDENTIAL REGULATION NO. 5/2006
Coal
33%

Coal
23.91%

Natural Gas 30%

Natural Gas
24.29%

Oil
20%
NRE; 17%

NRE
5.03%

ENERGY ELASTICITY= 1,65

NON FOSSIL ENERGY SHARE 5%

Energy and Mineral Resources for Peoples Welfare

Biofuel
5%

Nuclear,
Hydro,
Solar,
Wind,
and Other NRE 5%

Geothermal
5%

Liquified
Coal 2%

ENERGY ELASTICITY LESS THAN 1 IN 2025

OPTIMIZING NEW RENEWABLE ENERGY SOURCES

1.

2.

3.

4.
5.

6.
7.

IMPROVING POLICY AND REGULATION

Some sub-sectors of RE still has not been set. Therefore, the Government continues to
improve the regulation of development and utilization of NRE, including the preparation of
draft government regulations of NRE.
CREATING MARKET
through the supply and utilization of variuos NRE, obligating National Electric Company
(PT PLN) to buy electricity.
FEED-IN TARIFF and CEILING PRICE
Declared through the MEMR Regulation, that regulate the FiT and ceiling price of electricity
from RE purchased by National Electric Company.
THE FUNDING AND OTHER SUPPORTING
Providing fund to improve energy acess in remote and isolated area
IMPROVING QUALITY AND QUANTITY OF HUMAN RESOURCES
Education and training in the field of RE
Improving NRE networks, supporting the establishment of organization/association
INCREASING RESEARCH IN THE FIELD OF NRE
Increase research cooperation; Increase kind of research
INCREASING COOPERATION WITH OTHER COUNTRY AND INTERNATIONAL ORGANIZATION
Cooperation for capacity building and technology transfer
Lessons learned for the implementation of NRE policies and programs

Energy and Mineral Resources for Peoples Welfare

1) Increasing the share of RE use

2) Application of electricity tariff (ceiling

3)
4)

5)

6)

price) for the purchase price of

electricity from solar PV by PLN
Providing incentives for solar PV local
production
Mandatory use of local production for
solar PV development by government
funding
Encourage the development of solar
PV local industry
Solar PV development is priority for
regional and remote area
SOLAR PV PP1 MW IN BANGLI
PROVINSI BALI

Energy and Mineral Resources for Peoples Welfare

1. CURRENT CONDITION
Solar PV PP installed capacity: 42.77 MW
By Government Funding, in year 2012 : 123 units Solar PV
PP (4.8 MWp), in year 2013 : 121 units Solar PV PP (5.27
MWp)

2. DEVELOPMENT PROGRAM
By Government Funding, in year 2014 : 154 units Solar PV
PP
For Independent Power Producer (IPP) : The GoI have
already released the ministerial regulation on solar PV PP
Tariff (MEMR Regulation No 17 Year 2013)

Energy and Mineral Resources for Peoples Welfare

1)

2)

3)
4)
5)
6)
7)

As an incentive to encourage development of solar PV, the GoI has already

released regulation (MEMR Regulation Number 17 Year 2013 concerning on
Purchasing Electricity From Solar PV Power Plant)
The tariff levels are based on ceiling price of 25 cent/kWh (using modules with local
content < 40%, i.e. considered as imported modules) and 30 cent/kWh (using
modules with local content 40%)
The application for the ceiling price will be done through bidding process using
online system based on certain quota per annum
The quotas have already determined by Director General of NRE&EC
The total of quotas in 2013-2014 is 140 MW, in 80 Locations
Currently 5 Locations (12 MWp) have appointed investors through bidding process,
and 6 Locations on Bidding Process
Website: www.lelang.ebtke.esdm.go.id

Energy and Mineral Resources for Peoples Welfare

SUMUT: 2 MWp, 1 PLTS

Nias, 2 MWp
ACEH: 4 MWp, 3 PLTS
Sabang, 1 MWp
Sinabang (Simeulue), 2 MWp
Singkil, 1 MWp

KALBAR: 9.5 MWp, 7 PLTS

Ketapang, 2.5 MWp
Ngabang, 1 MWp
Sanggau, 1.5 MWp
Sintang, 1.5 MWp
Nanga Pinoh, 1 MWp
Sekadau, 1 MWp
Putussibau, 1 MWp
BABEL: 13 MWp, 2 PLTS
Bangka, 2 x 5 MWp
Belitung, 3 MWp

KALSEL: 2 MWp, 1 PLTS

Kotabaru, 2 MWp
KALTENG: 2 MWp, 2 PLTS
Sukamara, 1 MWp
Nanga Bulik, 1 MWp

GORONTALO: 2 MWp, 1 PLTS

Gorontalo, 2 MWp

SULTENG: 2 MWp, 2 PLTS

Tolitoli, 1 MWp
Kep. Banggai, 1 MWp

KALTIM: 2.5 MWp, 2 PLTS

Nunukan, 1.5 MWp
Tanjung Selor, 1 MWp

SULUT: 4 MWp, 4 PLTS

Tahuna, 1 MWp
Siau, 1 MWp
Karakelong, 1 MWp
Talaud, 1 MWp
MALUT: 7.5 MWp, 6 PLTS
Ternate-Tidore, 2.5 MWp
Jailolo-Sofifi, 1 MWp
Tobelo-Malifut, 1 MWp
Bula, 1 MWp
Bacan, 1 MWp
Sanana, 1 MWp

PAPUA: 14.5 MWp,

7 PLTS
Jayapura, 6 MWp
Biak, 1.5 MWp
Kaimana, 1 MWp
Serui, 1 MWp
Merauke, 1.5 MWp
Nabire, 1.5 MWp
Timika, 2 MWp
PAPUA BARAT: 5 MWp, 3
PLTS
Manokwari, 2 MWp
Fak-fak, 1 MWp
Sorong, 2 MWp

RIAU: 8.5 MWp, 6 PLTS

Siak, 1 MWp
Bengkalis, 1.5 MWp
Ranai , 1 MWp
Selat Panjang, 1.5 MWp
Tj Balai Karimun, 2.5 MWp
Tj Batu , 1 MWp
SUMBAR: 2 MWp, 1 PLTS
Mentawai, 2 x 1 MWp

BENGKULU: 1 MWp, 1 PLTS

Muko-Muko, 1 MWp

JATIM: 4 MWp, 4 PLTS

Kangean, 1 MWp
Karimunjawa , 1 MWp
Raas , 1 MWp
Sapudi , 1 MWp

NTB: 17 MWp, 5 PLTS

Sumbawa, 3 MWp
Lombok Utara, 2 MWp
Lombok Timur, 4 MWp
Lombok Barat, 4 MWp
Sistem Bima, 4 MWp

NTT: 14 MWp, 9 PLTS

Kupang, 5 MWp
Atambua, 1 MWp
Rote, 1 MWp
Alor, 1 MWp
Adonara, 1 MWp
Sumba Timur, 1 MWp
Larantuka, 1 MWp
Maumere-Ropa-Ende, 2 MWp
Bajawa-Ruteng-Labuan Bajo, 1 MWp

Energy and Mineral Resources for Peoples Welfare

SULTRA: 13 MWp, 7 PLTS

Bombana, 1 MWp
Kendari, 2 x 3 MWp
Kolaka, 2 MWp
Bau-Bau, 2 MWp
Raha, 1 MWp
Wangi-Wangi, 1 MWp

SULSEL: 1 MWp, 1 PLTS

Selayar, 1 MWp

MALUKU: 9.5 MWp, 6 PLTS

Ambon, 4.5 MWp
Seram, 1 MWp
Namlea, 1 MWp
Tual, 1 MWp
Dobo, 1 MWp
Saumlaki, 1 MWp

NATIONAL
ENERGY MIX

MEMR
REGULATION NR
17/2013
(PRICE, QUOTA,
BIDDING)

DECREE OF DG
NRE&EC (QUOTA,
TENDER, AUCTION
WINNER)

PT. PLN
(ELECTRICITY
PURCHASING)

BIDDING
PROCESS
OF QUOTA

CONSTRUCTION
OF SOLAR PV PP

Energy and Mineral Resources for Peoples Welfare

APPOINTMENT
OF IPP

PPA

1.
2.
3.
4.

5.

To make escrow account (20% of invesment total).

To finish financial close in 3 month after Power Purchase Agreement (PPA)
To start construction in 3 months after financial close
To reach Commercial Operation Date (COD) in 18 months after PPA.
If no reached COD in 18 months, so that can be extended until 12 months,
but will be charged by decreasing price :
Tardiness until 3 months will be charged decreasing price of 3%
Tardiness > 3 months - 6 months will be charged decreasing price of 5%
Tardiness > 6 months will be charged decreasing price of 8%
No allowed to transfer ownership to another business entities.

Energy and Mineral Resources for Peoples Welfare

1. Solar PV initial investment is still high,

2.

3.
4.
5.
6.
7.

therefore cannot compete with conventional

power generation (fossil fueled power
generation);
The incentive mechanism is needed to develop
industry which is oriented for solar energy
utilization;
Solar PV system efficiency is relatively low;
Photovoltaic technology is not yet
implemented in industrial scale;
Various technical specifications of PV in the
market needs standardization.
Lack of education/socialization of solar PV
application to the community;
Lack of local government and community in
understanding solar PV technology and its
management.

Energy and Mineral Resources for Peoples Welfare

1) The potential of solar energy in Indonesia is abundant although

until now the potential has not been widely utilized.
2) Indonesia government invite investors wishing to participate in
developing solar PV in Indonesia.
3) The development of solar PV program in Indonesia is still in its
early stage.
4) To encourage development and utilization of solar PV, the
Government of Indonesia have already released MEMR
regulation about ceiling price.
5) Indonesia government has determined the development of solar
PV to fulfill energy needs for rural/remote/isolated areas.
6) For urban areas, Indonesia government will do assessment on
PV roof-top systems.
Energy and Mineral Resources for Peoples Welfare

MINISTRY OF ENERGY AND MINERAL RESOURCES

DIRECTORATE GENERAL OF NEW RENEWABLE ENERGY AND ENERGY CONSERVATION

Pegangsaan Timur Street No. 1A Cikini, Jakarta 10320; Phone/Fax : +6221-31924540
e-mail: bahan_ebtke@yahoo.com

Energy and Mineral Resourceswww.ebtke.esdm.go.id

for Peoples Welfare