OUTLINE - International Forum for Sustainable Asia and the ... · Current Condition of Energy...
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LoCARNet 2nd Annual Meeting“Comparison of Reduction Potential of Asian Countries In Achieving Two-degree Target”
I d i L C b D l t Indonesia Low Carbon Development Strategy Scenario 2050 for Energy Sector
Yokohama, 24 -25 July 2013
Dr. Retno Gumilang Dewi, Prof Dr Rizaldi BoerDr Ucok Siagian and Mr Iwan Hendrawan
INSTITUT TEKNOLOGI BANDUNG (ITB)
Dr. Ucok Siagian, and Mr. Iwan Hendrawan
INSTITUT TEKNOLOGI BANDUNG (ITB)INSTITUT PERTANIAN BOGOR (IPB)
OUTLINEOUTLINE
1. Introduction
2. Energy Sector and GHG Emissions
3 Future Visions for Achieving LCDS Toward 20503. Future Visions for Achieving LCDS Toward 2050
4. Development of The Scenario
5. Simulation Results
6 Policy Gap Analysis and Recommendation6. Policy Gap Analysis and Recommendation
INTRODUCTION 1
This presentation discusses LCDS Toward 2020 & 2050 for Energy Sector.
IntroductionThis presentation discusses LCDS Toward 2020 & 2050 for Energy Sector.
LCDS is usually intended to assess long‐term vision (2050). Particularemphasis in the short‐term (2020) is to address options for achieving GHGreduction target (National Action Plan) up to 26% below the baseline withdomestic budget and further up to 41% with international support.
GHG of energy sector increased: 50 5 Mton C (2000) to 82 Mton C (2005)GHG of energy sector increased: 50.5 Mton C (2000) to 82 Mton C (2005)and 117 Mton C (2010) energy sector is 2nd contributor of national GHGafter AFOLU. LCD Strategy of energy sector is not to achieve world’s target
b i t it l l it i t l ibiliti f th f ton carbon intensity level; it is more to explore possibilities of the futureenergy security and economic development in a low‐carbon way.
In the current energy supply mix (2010), role of new‐renewable energyIn the current energy supply mix (2010), role of new renewable energy(NRE) is still low (6.1%) oil (44.34%), gas 43.30 %, and coal 24.43%.
NRE and power sector are discussed in more detailed as there is a new plan(2011‐2020) that intends to revise power development plan (more coalcompared to previous plan (2009‐2018) will be deployed gradually).
Policy gap analysis and recommendation relevant to the achievement of thePolicy gap analysis and recommendation relevant to the achievement of theRAN GRK target are also addressed in this study.
Sector 2000 2001 2002 2003 2004 2005Growth ,% per
GHG Emissions, Ton CO2-eq per year Introduction
Sector 2000 2001 2002 2003 2004 2005yr
Energy 280,938 306,774 327,911 333,950 372,123 369,800 5.7Industry 42,814 49,810 43,716 46,118 47,971 48,733 2.6
Agriculture 75,420 77,501 77,030 79,829 77,863 80,179 1.1g , , , , , ,Waste 157,328 160,818 162,800 164,074 165,799 166,831 1.2
LUCF 649,254 560,546 1,287,495 345,489 617,423 674,828* Fluctuated
Peat Fire1 172,000 194,000 678,000 246,000 440,000 451,000 Fluctuated
Total (+LUCF) 1,377,753 1,349,449 2,576,952 1,215,460 1,721,179 1,991,371 Fluctuated
Total w/o LUCF 556,499 594,903 611,457 623,971 663,756 665,544 3.2
3.5
2.5
3.0
3.5
e) .
Peat Emission
2.95
0 25
1.44
1.5
2.0
2.5
on (G
t CO
2e Peat Emission
Waste
Forestry
Agriculture1 35
1.76
Nett emission will increase 1.000 05
0.06
0 050.43 0.29
0.13
0.16 0.17
0.250.39
0.830.06
0.5
1.0
1.5
Em
issi
o
Industry
Energy
1.35
from 1.35 to 2.95 GtCO2e (2000-2020)
0.28 0.37
1.000.04
0.050.050.05
0.0
0.5
2000 2005 2020
Introduction
Reduction target (non binding
Baseline
ons level
Emission level target
(non binding commitment, 26%)
G Emissio
2005 2020
ss o e e ta get
GHG
Sector Emission Reduction (Giga ton CO2e) Total
(41 %)26% 15% ( %)26% 15%
Forestry and Peatland 0.672 0.367 1.039
Waste 0.048 0.030 0.078
Agriculture 0.008 0.003 0.011
Industry 0.001 0.004 0.005
E 0 038 0 018 0 056Energy 0.038 0.018 0.056
Total 0.767 0.422 1.189
Effect of the revised power development plan to the amount of GHG p p pthat have to be reduced from the “higher coal in power” scenario
“Hi h l i ” i
Revised reduction targetBaseline
“Higher coal in power” scenario
vel
Reduction target
mission
s le
902Emission level target (to meet government emission reduction commitment)
GHG E
2005 2020
Type of energy Base year 2005 RUPTL 2009‐2018 Revised PLN plan* Coal 40.7% 53% 65% Oil 30.6% 4% 3%
Natural gas 15.1% 26% 20% hydro 8.4% 10% 5% geothermal 5.2% 7% 7%
ENERGY SECTOR AND ENERGY SECTOR AND GHG EMISSIONS 2
Current Condition of Energy Sector in Indonesia
Energy development is guided by ‘energy supply security’ concern (basedon least cost and resources availability) some fuels are still subsidized
Presidential regulation No.5/2006, target share in 2025 energy supply mix:- oil < 20% (decreases from 54.78% in 2005) - natural gas ≈ 30% (increases from 22.2% in 2005)
N t tnatural gas 30% (increases from 22.2% in 2005)
- coal > 33% (increased from 16.77% in 2005) - geothermal > 5% and other NRE > 5% - develop biofuel to achieve at least 5%
25% (2025)39 5% (2050)
New target
- develop biofuel to achieve at least 5% - develop liquefied coal to achieve 2% (18 MMBOE) in 2020
Shift of new-renewable from 4.5% (2005) to 25% (2025) and 39.5% (2050)
39.5% (2050)
( ) ( ) ( )is positive to GHG mitigations, however, coal increases from 14% (2003) to33% (2025) or 30% (2050) will negatively affect to GHG mitigations.
Th i i l d GHG b d l f RE There is potential rooms to reduce GHG by deplyoment of RE energy.
Indonesia relies on imported technology that are currently old technologiesand inefficient there are rooms for energy efficiency improvements andand inefficient there are rooms for energy efficiency improvements andreducing the GHG emission level.
Energy Resource Potential of Indonesia
Fossil Energy ResourcesReserves Annual
ProductionR/P,
(Proven + Possible) year (*)
Oil 56 6 BB l 8 2BB l (**) 357 MB l 23Oil 56.6 BBarels 8.2BBarels (**) 357 MBarels 23Natural Gas 334.5 TCF 170 TCF 2.7 TSCF 63Coal 104.8 Btons 18.8 Btons 229.2 Mtons 82Coal Bed Methane 453 TCF - - -
(*) assuming no new discovery; (**) including Cepu Block
New and Renewable E
Resources Installed CapacityEnergy
p y
Hydro 75.670 MW 4.200 MW
Geothermal 27.510 MW 1.052 MW
500 MW 86 1 MWMini/Micro Hydro 500 MW 86,1 MW
Biomass 49.810 MW 445 MW
Solar Energy 4,80 kWh/m2/day 12,1 MW gy
Wind Energy 9.290 MW 1,1 MW
Uranium (***) 3 GW for 11 years*) (e.q. 24,112 ton) 30 MW
***) Only at Kalan – West Kalimantan
Source: Data and Information Center, MEMR, 2011
) Only at Kalan – West Kalimantan
GHG i i l l f ili i i i (b )GHG emission level from energy utilization activity (by sector)
300
350
400
CO2‐e
Main sources
150
200
250
million ton C
of GHG Emission from Energy Sector
50
100
150m
gy
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Fugitive 27 26 25 24 23 22 22 20 20 20 8
Non‐specified 11 11 12 12 12 12 11 11 12 12 13
R id ti l 38 39 41 42 42 41 40 34 31 28 26
0
Focus for Mitigation
Residential 38 39 41 42 42 41 40 34 31 28 26
Transportation 57 60 62 65 70 73 71 79 81 89 96
Industry 64 68 68 65 76 79 90 99 87 85 109
Energy productions 84 102 120 127 132 127 129 117 122 129 135
1250
1500
Biomassa
750
1000
ns B
OE Geothermal
Hydro
Oil Focus for
250
500milli
o Oil
Gas
Coal
Focus for Mitigation
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
1250
1500 ACM & others
Transportation
Commercial
Growth : 3.3% per year; Biomass is used in rural household
750
1000
ons
BO
E
Commercial
Household
Industry
250
500
milli
o
Household consumption includes Biomass
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
400
Million barrel
Oil Fuels Consumption
250
300
350
AMC
Oil Fuels Consumption
100
150
200
C ommerce
Industry
Transport
Household
Notes:• Mostly used in transport• Household demand will decrease significantly
0
50
100
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
decrease significantly, substituted by LPG
199
199
199
199
199
199
199
199
199
199
200
200
200
200
200
200
200
200
200
180
200
Million barrels
120
140
160
180
AvturDieselGasolineTransportation fuels
40
60
80
100Gasoline
Note: Other transport fuels ( l t i it d th li id
Transportation fuels
Potential to be replaced with
0
20
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
(gas, electricity and other liquid fuels) are much smaller
replaced with biofuel or gas
FUTURE VISIONS FOR ACHIEVING LCDS TOWARD 2050 3LCDS TOWARD 2050
Socio Economic Parameter Base Year Target Year Target Year
2005 2020 2050
P l i Milli 219 261 327 Population, Million 219 261 327 Person per household 3.68 3.68 3.3 GDP (at constant price 2000), trillion IDR 1,787 4,572 30,244 GDP per capita, million IDR 8.152 17.519 92.508 GDP per capita, million IDR 8.152 17.519 92.508 Gross output, trillion IDR 3,533 10,657 70,490.1 ‐ Primary 329 629 4,157 ‐ Secondary 1,953 4,506 29,807 ‐ Tertiary (commercial) 1,251 5,522 36,525 Passenger Trip Generation (Ptg), trips 3.6 3.6 3.3 Passenger‐transport demand, billion psg km 1,763 2,145 2,463 Freight transport demand billion ton km 274 1 062 7 022 Freight‐transport demand, billion ton km 274 1,062 7,022
Base year: 2005 and Short Term Projection 2020 and Long Term Projection 2050
The society is depicted as calmer slower and nature oriented This scenario is regarded asThe society is depicted as calmer, slower, and nature oriented. This scenario is regarded as moderate development path, in which:
- Population growth 1.03%/year (2005‐2020); and 0.89%/year (2020‐2050).
- GDP growth 6% (2005–2010), 6,5% (2010‐2020), 7% (2020‐2050).
BaU (moderate): current development trend and society orientation will continue until 2050, people lifestyles and activities do not have implication to the generation of CO2 emissions
Mitigation (moderate): same economic development with BAU but society is more efficient in energy utilizations (use technology with higher energy efficiency) compared to the BAU.
DEVELOPMENT OF THE SCENARIO 4
S H O R T T E R M ( 2 0 2 0 ) A N D L O N G T E R M ( 2 0 5 0 )
SCENARIO
BaU 2020Short Term Target
Base Year2005
Mitigation 1 2020
Mitigation 2 2020g
* BaU 2020
Mi i i 1 2020
Revised* Short Term Target: Higher coal scenario *Revision related to the
new plan in which higher
Base Year2005
Mitigation 1 2020
Mitigation 2 2020
new plan, in which higher coal will be deployed in the power supply mix
Mitigation 1 R 2020
Influences the Long Term Projection
g
Mitigation 2 R 2020
Long Term Target
Influences the Long Term Projection
* BaU 2050
Base Year2005
Mitigation 1 2050
Mitigation 2 2050
Mitigation 1 R 2050Mitigation 1 R 2050
Mitigation 2 R 2050
LOW CARBON MEASURES
MITIGATION OPTIONSMITIGATION OPTIONS
Short Term (2020):Mitigation actions to be included in the study are those options that are likely readily applicable and deployable in the near future such as energy efficiency measuresapplicable and deployable in the near future such as energy efficiency measures.
M1 improve efficiency devices in Industri, Residensial, Comersial, and Transport Sector
M2 M1 + improve efficiency coal Plant and transmission&distribution losses in Power Sector
M1 R M1 + install Solar Cell in Residential Sector
For long term (2050):
M1 R M1 + install Solar Cell in Residential Sector
M2 R M1 + increase train and bus sharing in Transport Sector
For long term (2050):Mitigation options are generally relatively wide (efficiency measures to deploymentof advanced technology such electric cars fueled using renewable sources ,etc.)
M1 improve efficiency devices in Industri, Residential, Commercial, and Transport Sector
M2 M1 + improve efficiency coal Plant and transmission & distribution losses in Power Sector
M1R M1 + install Solar Cell in Residensial Sector
M2R M1 i i d b h i i T SM2R M1 + increase train and bus sharing in Transport Sector
END USER ENERGY EFFICIENCY MEASURESEND‐USER ENERGY EFFICIENCY MEASURES
Sector Penetration share of
Efficiency improvement of BAT
Remarks Sector share of BAT compared to
existing device
Remarks
I d t 30% 10 30% I th d l thi Industry 30% 10 – 30% In the model this efficiency improvement varies, depend on the
Commercial 15% 20 ‐ 30%
type of device (not sectoral aggregate) Residential 10% 10 ‐ 20%
Note: Penetration share of BAT in industry sector 30% means that in 2020 the technology (devices) used in the industry activities will comprise 30% BAT and 70%
existing technology (less efficient).
SIMULATION RESULTS 55
Trillion IDR
70
80
Trillion IDR
Commercial
60
70 Cement
Iron and Stel
40
50 Other Industries
Construction
20
30 Construction
Chemicals
10 Textile, Wood, PaperFood and Beverage
-2005 2020 2050
Gross output of production sectorGross output of production sector
18
14
16
18Base 2020 2050
10
12
14
05=1
8
10
lueof 20
4
6Va
0
2
Population GDP Final Energy GHG EmissionsPopulation GDP Final Energy
Demand
GHG Emissions
Snapshots of population GDP energy demand and GHGSnapshots of population, GDP, energy demand and GHG
7 000
6,000
7,000
ton
CO
2 Power Generation
Tertiary Industries
5,000 Milli
on
Cement
4,000 Iron and Stel
Other Industries
2,000
3,000 Construction
Ch i l
1,000
2,000 Chemicals
Textile, Wood, and Paper
-2005 2020BaU 2050BaU
PaperFood and Beverage
GHG emissions by sector
SCENARIO 2020 VS 2050SCENARIO 2020 VS 2050
1,400
1,600
illio
n to
e Commercial
Cement
2,500
ilio
n to
e
1,000
1,200
M Iron and Steel
Other Industries
Construction1 500
2,000 Mi
Biomass
600
800
,Chemicals
Textile, Wood, and PaperFood and Beverage 1,000
1,500 Geothermal
HydroPower
Natural Gas
Oil
200
400
600 Mining and Quarying
Agriculture
Households 500
Oil
Coal
-
200
2005 2020BaU 2050BaU
Freight transport
Passenger transport -2005 2020BaU 2050BaU
Final energy demand projection Primary energy supply mix
SCENARIO 2020 VS 2050 FOR POWER GENERATIONSCENARIO 2020 VS 2050 FOR POWER GENERATION
00
800
900
Mill
ion
toe 2,500
O2e
Natural Gas
Oil
500
600
700 M
Biomass
Geothermal 1,500
2,000
illio
n to
n C
O Oil
Coal
300
400 HydroPower
Natural Gas
Oil
Coal
1,000
M
100
200 Coal
-
500
2005 2020B U 2050B U-2005 2020BaU 2050BaU
2005 2020BaU 2050BaU
Power generation by fuel type GHG emissions of power sector
SCENARIO 2020SCENARIO 2020
Table 1. Simulation results of the effect of ‘higher coal power’ to the SNC scenarios
Parameter 2005 2020 (SNC projection) Effect of higher coal in 2020
Base Year BaU M1 M2 BaU MR1 MR2 GDP (trillion IDR) 1,787 4,572 4,572 4,572 4,572 4,572 4,572 Population (million) 219 261 261 261 261 261 261Population (million) 219 261 261 261 261 261 261 Energy demand (million toe) 115.3 307 299 299 307.3 298.7 298.7 Energy demand per capita (toe) 0.5 1.2 1.1 1.1 1.2 1.1 1.1 Energy intensity (toe/million IDR) 63.6 67.2 65.3 65.3 67.2 65.3 65.3
l i iEnergy Elasticity 1.06 1.03 1.03 1.06 1.03 1.03 CO2 emission (million ton-CO2)* 290 949 915 897 977 915 906 Carbon Intensity - Ton CO2 per capita 3.6 3.6 3.5 3.4 3.7 3.5 3.5Ton CO2 per capita 3.6 3.6 3.5 3.4 3.7 3.5 3.5 - Ton CO2 per million IDR 208 208 200 196 214 200 198
*It does not include CO2 emission from fugitives
Parameter2005 2020 2050
Base Year BaU M1 M2 BaU M1 M2
GDP (trillion IDR)1 787 4 479 4 479 4 479 29 549 29 549 29 549
( )1,787 4,479 4,479 4,479 29,549 29,549 29,549
Population (million) 219 261 261 261 307 307 307 Energy demand per capita (toe) 0.6 1.0 0.9 0.9 4 3 3 p ( )
Energy intensity (toe/million IDR) 68.3 56.5 53.4 53.4 38 33 33
GDP Growth rateGDP Growth rate6.3% 6.3% 6.3% 0 0 0
Energy Demand Growth rate 5.0% 4.6% 4.6% 0 0 0
Energy Elasticity 0.79 0.73 0.73 1 1 1 Ton CO2 per capita 1.5 3.3 3.2 3.1 13 11 10 Ton CO2 per million IDR 185 193 185 181 137 119 101
FINAL ENERGY DEMAND 2020 FINAL ENERGY DEMAND 2020
300
350
illio
nTO
E Commercial
Cement
Iron and Steel
300
350
illio
n to
e
200
250
Mi Iron and Steel
Other Industries
Construction200
250
Mi
Electricity
150
Chemicals
Textile, Wood, and PaperFood and Beverage
150
Electricity
Biomass
Natural Gas
Oil
50
100 Mining and QuaryingAgriculture
Households50
100 Coal
-
2005
020B
aU
2020
M1
2020
M2
Freight transport
Passenger transport
-
2005
020B
aU
2020
M1
2020
M2
20 2 2 20 2 2
by Sector by Fuel Type
PRIMARY ENERGY SUPPLY BY TYPE OF ENERGYPRIMARY ENERGY SUPPLY BY TYPE OF ENERGY
400
450
on
toe
300
350
Mill
io
Biomass
200
250
300 Geothermal
HydroPower
100
150
200 Natural Gas
Oil
Coal
50
100 Coal
-2005 2020BaU 2020M1 2020M2
CO2 EMISSION 2020CO2 EMISSION 2020
900
1,000
tonCO2
Power Generation
Tertiary Industries
Cement
902 900
1,000
tonC
O2
natural gas
902
600
700
800
million t Cement
Iron and Stel
Other Industries
Construction 600
700
800
Milli
lion
t natural gas
oil
coal
400
500
600 Construction
Chemicals
Textile, Wood, and PaperFood and Beverage
400
500
600
100
200
300
g
Mining and Quarying
Agriculture
Households100
200
300
‐
2005 2020BaU 2020M1 2020M2
Freight transport
Passenger transport-
100
2005 2020BaU 2020M1 2020M2
CO2 Emissions by Fuel TypeCO2 Emissions by Sector
REVISED POWER GENERATION PLANREVISED POWER GENERATION PLAN
400
450
O2‐e
300
350
on ton CO
150
200
250
Millio natural gas
oil
coal
50
100
150 coal
0
50
2020BaU 2020BaU Higher Coal
CO2 Emissions Power Sector
MITIGATION SCENARIOSFOR “HIGHER COAL POWER”
Efficiency measures (end-user and supply sides Efficiency measures (end user and supply sides +
transport mode shifttransport mode shift
END-USER ENERGY EFFICIENCY MEASURES, APPLIED IN M1 AND M2
Sector Penetration share of
Efficiency improvement of BAT
Remarks Sector share of
BAT compared to existing device
Remarks
Industry 30% 10 30% In the model this Industry 30% 10 – 30% In the model this efficiency improvement varies, depend on the
Commercial 15% 20 ‐ 30%
type of device (not sectoral aggregate) Residential 10% 10 ‐ 20%
Note: Penetration share of BAT in industry sector 30% means that in 2020 the technology (devices) used in the industry activities will comprise 30%
the technology (devices) used in the industry activities will comprise 30% BAT and 70% existing technology (less efficient).
CHANGE OF TRANSPORT MODE CHANGE OF TRANSPORT MODE
100%
80% Airplan
Bicycle
60%
dal share Walk
Ship
Motorcycle20%
19%10%40%M
od Motorcycle
Small Vehicle
Large Vehicle
15% 15%20%
20% Bus
Train
2% 2% 6%0%
2005 2020 Higher Coal 2020M2(R)
GHG EMISSIONS 2020, ,HIGHER COAL AND MITIGATIONS
1,000
nCO2‐e
Power Generation
Tertiary Industries902800
Million to Tertiary Industries
Cement
Iron and Stel
Oth I d t i
902
600Other Industries
Construction
Chemicals
400 Textile, Wood, and Paper
Food and Beverage
Mining and Quarying200
Mining and Quarying
Agriculture
Households
F i ht t t0
2020BaU 2020BaU Higher Coal
2020 M1(R) 2020 M2(R)
Freight transport
Passenger transport
GAP ANALYSIS AND RECOMMENDATION 6GAP ANALYSIS AND RECOMMENDATION
POSSIBILITY THE USE OF BIOMASS BASED ENERGY
BIOMASS RESOURCES POTENTIAL IN ASEAN COUNTRIES
Sources:Sources: Saku Rantanen (Pöyry), 2009
Large Potential is still unutilized!.
Source: Sou ceSaku Rantanen (Pöyry), 2009
FUELSDEM AND Fossils Fuels
I t
FOSSIL FUELS SUPPLY
+-
Fossil FuelsConsumption
Fossil FuelsProduction
Resource
Crude OilExploration
Import
Fuel Demand
GlobalEnvironmental
Pressure
+
-
-
+-+
++
FUELSPRICES
EnergyEffi i
DepletionPotential
Gross DomesticProduct
PricingPolicy
GlobalEnergy Price
+
+
-
-
EfficiencyDomestic
Fuels Price
DomesticBi f l P i
DomesticBiofuelssupply
BiofuelsExport
Global BiofuelPrices
++
--
+
+++
+
BIOFUELSINDUSTRY
Economic Feasibility
Biofuels Price
Employment
pp y
BiofuelsProduction
Export
++
+
+
of BiofuelsLandConversion
PolicyAgricultural
Product Price
Land availability
BiofuelPlantation+ -
+
+
AGRICULTURE
Food SupplyFood cropsland
Forest
Land availabilityfor biofuel
+-
-
++
+
+
FORESTRY
Food cropsextensification Food
Se curity
ForestConservation
EffortsDefore station+
+-
THE POSIBILITY TO USE BIOMAS BASED ENERGY POTENTIAL (PARTICULARLY BIFUELS) IN TRANSPORTATION, INDUSTRY AND POWER) ,
NEEDS TO INTEGRATE ENERGY MODEL AND AFOLU MODELNEEDS TO INTEGRATE ENERGY MODEL AND AFOLU MODEL
GAP ANALYSIS OF CURRENT POLICY
Th t t f N ti l A ti Pl F R d i GHG E i i ld b hi d
GAP ANALYSIS OF CURRENT POLICY
The target of National Action Plan For Reducing GHG Emissions could be achievedthrough Energy Efficiency (EE) measures in supply/demand side.
Demand side EE could be implemented when following conditions prevail:Demand side EE could be implemented when following conditions prevail:• Efficient appliances are available and relatively easy to access• Producers have technical & financial capability to produce eff. appliances• Producers have the needed drive to produce efficient appliances (there is a• Producers have the needed drive to produce efficient appliances (there is a
market demand of their product)• Energy users have the drive to safe energy.
E h fi i l i i ffi i li ( ll• Energy consumers have financial capacity to acquire efficient appliances (usuallyexpensive)
Supply side EE could be implemented when following conditions prevail:• There is an economic drive or stimulant for power generators to improve
efficiency. Under current subsidy system such drive may not existy y y y• Strict regulation that prevent construction of less efficient power plant. The GOI
should set minimum thermal efficiency for new power plants
RECOMENDATIONRECOMENDATION
In demand side, the following policy/regulations are recommended:• To ensure the use of efficient energy appliances, introduce incentive packages
for energy consumer such as help for financing of expensive but efficientfor energy consumer such as help for financing of expensive but efficient appliances.
• Introduce building codes that promote energy efficiency: make the use of efficient appliances & energy efficient design as requirement for constructionefficient appliances & energy efficient design as requirement for construction approval.
• Introduce EE as a major criteria in rating of industrial environmental complianceSt th it f t ffi i l i EE h i l ti d• Strengthen capacity of government officials in EE arena such as in evaluating andinspecting the efficiency of energy systems and energy audit document reportedby industry/building sector; the government officials that need to be strengthenis not limited to energy ministry but also for officers at other ministry that dealswith energy related issues such as ministry of environment, ministry of publicworks, ministry of industry, ministry of finance etc.
• Introduce energy pricing policy that promotes energy efficiency: gradual removalelectricity and oil subsidies.
In supply side, the following policy/regulations are recommended:
I d l i f h ill i h ffi i• Introduce regulations for power sector that will increase the efficiency of power plant by making a mandatory to use best available technology in new coal power plant construction; new coal power gy p p ; pplants options include circulated coal fluidized bed combustion (CFBC), sub‐ or super‐critical coal power plants; stoker‐type coal power system
d t b h d t thi l ti h ld l t PLN dmay need to be phased out; this regulation should apply to PLN and IPP as well as to industry that generate their own electricity
• Introduce regulations that would force the electricity company• Introduce regulations that would force the electricity company continuously to reduce technical losses at their transmission and distribution systems e.g. by using higher voltage transmissions lines and improvement of transformer at the power substations.
Thank You
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