I think the issue in energy saving is getting hotter day by day. A lot of seminars and training were held to create awareness among people to take action on energy saving.When I was pursuing master degree, I took bioenergy as theme of my thesis. I was getting aware on energy depletion, so that it couraged scientists in the world to develop alternative energy to replace petroleum oil. Honestly, the idea of saving energy is pretty new for me although the background is the same as developing alternative energy.
Increasing Demand, Decreasing Supply
Global primary demand is projected to increase by 53% between 2004 and 2030 to over 17 million TOE (ton oil equivalent) – an average annual rate of 1.6%. Over 70% of the increase comes from developing countries. The power generation sector contributes close to one-half of the global increase (source).
Fossil fuel is the dominant source of energy, accounting for 83% of the overall increase in energy demand. For example, oil demand grows by 1.3% annually, reaching 116 million barrel per day in 2030.
No one doubts that fossil fuels are subject to depletion. The availability of oil worldwide has already peaked (source).
One report said that the amount of proved oil left in the world was 1.15 trilion barrels. It would take 41 years for this to be completed. As for gas, the remaining proved reserves was 176 trilion cubic meters or 67 years’ worth of supplies (source).
Increasing Energy Price
Energy price is expected to increase in short and long-term basis. There are several drivers of energy price. The drivers are
Energy security is a big concerns of almost every country. Most of countries, like Indonesia, relies on petroleum oil as main energy source. As a big population country, demand energy and resources will increase in Indonesia. In addition, the issue concerning climate change, pollution, and improving life quality for people encourage us to seek alternatives of fossil fuel.
Indonesia is facing a long-term problem: energy shortage. Dahlan Iskan (ex-CEO of State-owned Power Company, PLN) also admitted the country’ supply of electricity is very limited. PLN has encountered power shortages in 250 regions, including 243 location in eastern Indonesia (source). The reason of power shortage in some areas is due to inadequate transmission and distribution infrastructure (source).
Total energy consumption in Indonesia per capita remains low. In 2009 it reached 0.8 toe compared to world average of 1.8 toe (source).
Indonesia has a wide variety of energy resources, including fossil and non-fossil resources. The major energy resource fueling Indonesia’s economy is oil, providing 32% of total. Biomass came second with 27% particularly in the more remote areas that lack to Indonesia’s energy transmission network, while coal accounted 19% to fuel new power generation, gas for 18%, and primary electricity (hydroelectricity, geothermal) for 4% (source).
Electricity consumption per capita is very low and reached 570 kWh in 2009, compared with a world average of 2500 kWh. Energy consumption has increased by more than 8.5% per year since 1990, more rapidly than total energy consumption. It is due to the use of electricity in all sectors and the increase in the country’s electrification rate (source).
Net Importer of Oil
Indonesia is currently a net importer of crude oil and refined product. Indonesia is the only OPEC member (Organization of Petroleum Exporting Countries) that is the net oil importer. Its oil production has declined over the years owing to ageing of oil fields and lack of investment in new equipment.
Indonesia is ranked eighth in world gas production with proven reserves of 108 trillion cubic feet in year 2010. This ranks eleventh in the world and the largest in Asia Pacific region. Gas reserves are equivalent to three times Indonesia’s oil reserves and can supply the country for 50 years at current production rate (source).
Clean Energy Regulatory Framework
The energy sector in Indonesia is dominated by four key policies and objectives:
Diversification: to reduce dependence on oil by expanding the use of coal, gas, and renewable energy resources
Rational energy pricing: no longer sustain uniform pricing for electricity and petroleum products across country, and it has begun to eliminate subsidies
Energy sector reform: the combination of decentralization of government decision-making to give greater involvement to regional authorities
Rural electrification: bring electricity to 90% of population by 2020
The energy law no. 30/2007 provides a renewed legal framework for the overall energy sector with emphasis on economic sustainability, energy security and environmental conservation. National Energy Council (DEN) was established under this law with the task:
formulating and implementing national energy policy
determining national energy general plan
planning steps to overcome any energy crisis or emergency (source)
The national energy policy is the overall management of energy and will address issues such as:
the availability of energy to meet the nation’s requirements
The basis of renewable energy development in Indonesia is Presidential Regulation No. 5/2006. It sets national energy targets for an optimal energy mix in 2025:
less than 20% from oil
more than 30% from gas
more than 33% from coal
more than 5% from biofuel
more than 5% from geothermal
more than 5% from other renewables, especially biomass, nuclear, micro-hydro, solar, and wind
more than 2% from liquefied coal
Potential of Renewable Energy Resources
Renewable energy resources have been largely unexploited due to the perceived high up-front cost and lack of infrastructure to match supply with demand (source).
Pressure Drop (kN/m2)
Viscosity < 1 mN s/m2
1-10 mN s/m2
Gas and Vapor
0.1 x abs pressure
0.5 x system gauge pressure
Above 10 bar
0.5 x system gauge pressure
Indonesia has significant geothermal reserves (around 40% of the world’s reserves) and the potential to produce 27,710 MW of electricity. However only 1,200 MW of power capacity has been built.
Based on the National Power General Plan and Presidential Regulation No. 5/2006 the contribution of renewable energy is to increase from its current 5% to 17% of the total energy consumption in 2025. Geothermal is expected to account for 5% of the contribution of renewable energy with a target 9,500 MW by 2025 (source).
Solar energy in Indonesia is quite large and reaches 4-5 kWh/m2, but the efficiency of solar photovoltaic cell has only reached 10%. Since investment cost of solar PV is very high although fuel cost is zero, the electricity generation from solar energy is less competitive compared to other energy. However solar energy in the form of solar home system will be utilized in remote areas where no other alternative sources for electricity generation (source).
Electricity generation potential from the roughly 150 Mt of biomass residues produced per year to be about 50 GW or equivalent to 470 GJ/year roughly (assuming the main source of biomass energy in Indonesia will be rice residues with a technical energy potential of 150 GJ.year, source). Other potential biomass sources are rubber wood residues (120 GJ/year), sugar mill residues (78 GJ/year), and palm oil residues (67 GJ/year).
Indonesia has abundant hydropower resources and has been successful in developing micro, mini, small, and large hydropower plants over the past decades. Small hydro potential is distributed around islands, can be developed as local energy resources especially in remote areas for rural independent power supply.
One of my colleague yesterday (8/2) asked me what exactly an energy auditor do in energy audit project. It took a minute for me to answer that question because I did not involve directly into that project (I defined myself as expediter in this project, not as engineer. But since I am chemical engineer, I quite understand what we do in energy audit project). About that question, I said an energy auditor does calculation of energy consumption per product, determine if the plant consumes too much energy or not, and give some recommendations to conserve energy. Is that an easy job? I don’t think so. It is not easy, but it’s simple. Read More
Energy Audit especially for buildings and plants is considered as a huge potential business for consulting company especially in Indonesia. The Indonesia ministry of energy and mineral resources has issued law No. 14 year of 2002 about energy management. The law said that every energy user which consumes more than 6000 ton oil equivalent (TOE) is required to implement energy management.
What is energy audit?
Energy audit is evaluation process of energy utilization, identification of energy saving opportunities, and formulate recommendation and energy efficiency improvement. Energy audit is carried out at least to main energy consumers regularly once every three year.
Who does energy audit?
Energy audit should be performed by internal energy auditor or by accredited institutions. The energy auditor should have competence certificate based on Indonesia legislation. Read More
About three weeks ago, I got a chance to participate in a seminar explaining The Result of Energy Potential Scan (EPS) in Indonesia. The seminar was held in Sahid Hotel Lippo Cikarang from 09.00 am to 13.30 pm.
The application of EPS in Indonesia was a form of cooperation between Indonesia with Netherland. Energy Potential Scan is an ideal instrument used to analyze the existing energy consumption and to analyze the possibility to conserve energy. In Netherland, energy efficiency has been started since 1990. At 1990, the target was to achieve 20% of energy efficiency within 10 years. The result was even better. Within 10 years, energy efficiency was 23%. As the follow up of this achievement, energy efficiency is applied to every production line.
There’s evolution in energy valuation. Energy is a cost-center that we must not ignore. Moreover, energy saving has been encourage since 1970. Energy savings is important because utilization of fossil energy leads to climate change. Energy Service Companies (ESCO) mostly don’t have authority to interact with most people in the industry. Read More