2.
DISCUSSION
2.1 Source of Energy in Indonesia
As known Indonesia is an archipelago country which has in about 13 466 island, a
territorial area of 7 788 810 square km and estimated inhabitants of over 240 million,
Indonesia is the world’s fourth most popular country and known as one of the richest
diversified – natural resources countries. ( MEMR, 2013 )
Indonesia is home to 264 million people and it is become the fourth largest national
population worldwide. Furthermore, its economy is by far the largest among ASEAN’s
10 member nations which is represent by Indinesia, Brunei, Cambodia, Malaysia, Lao
PDR, Myanmar, Philippines, Singapore, Thailand and Vietnam.
More energy is consumed in Indonesia than others the nine ASEAN member nations.
Electricity generation capacity stood at 57.6 gigawatts ( GW ) in 2017. The consumers
are around 220 terawatt per hours ( TWh ) of electricity per year.
2.1.1 Solar Energy
Solar energy and Indonesia seem almost ideally suited for each other in fulfil
their need for domestic use. However, Indonesia has yet to tap into its abundant solar
energy resources potential in any significant way. This country is one of ASEAN
( Association of Southeast Asian Nations ) member, a perty to the U.N. Framework
Convention on Climate Change ( UNFCCC ) and Paris Climate Agreement, the
government of Indonesia has set a target of renewable energy by providing about 23%
of electricity generation by 2025 and up to 31% by 2050. At present, some 13% of
power generation nationwide comes from renewable energy resources, according to
government statistics the energy mainly hydroelectric and some geothermal power
production.
Refer to Bernarto, the development of renewable energy resources including
solar is a priority that the Indonesian government is working towards. IRENA, the
International Renewable Energy Agency, expects Indonesia’s installed solar power
capacity to grow significantly in scale by 2030 driven by initiatives on the part of the
government and PLN ( Perusahaan Listrik Negara ). PLN is one of the company that
investors and developers open market business the state utility.
The potential of solar power capacity was identified by IRENA to deploy 47
Gigawatt by 2030 as reported in Roadmap for a Renewable Energy Future ( REmap,
2017 )
Figure 1 : SolarGIS map of Indonesia Solar Resources
Source : Roadmap Indonesia’s Power Sector Report
2.1.2 Wind Energy
Wind energy is the potential resource in Indonesia. The biggest wind energy in
Asia lead to Philippines with estimated technical potential of around 70 gigawatts
(GW). However, Indonesia is not to be outdone in this regard. Indonesia has a high
demand of power due to it is the largest economy in the region has attractive
demographics. According to the IRENA, the archipelagic country has an estimated
total potential for onshore wind energy of 9.3 GW. Evaluated site and identified short
term potential across wind locations, it is estimated about nearly 85% of wind power
potential in the country is in the Java-Bali, Sulawesi and Nusa Tenggara areas. Irena
also states that Indonesian government has their target 1.8 GW to be installed wind
capacity by 2025 with capacity factors estimated at 20-30 percent.
However, to deploying wind energy have a lot of challenges include it costs.
The cost of deploying wind energy is very high especially with the use of off-shore
wind turbines. To build the off-shore wind turbines need a high cost around US$2 to
US$3 million per megawatt (MW) compared to geothermal power plant and coal
powered plant which is has a lower costs. Another major challenge that Indonesia
faces is the cost for analysis when selecting the best possible energy generation
method to suit the Indonesian geographical landscape.
The first wind farm developed in Indonesia is in Southeast Asia which is
located in Sidrap, South Sulawesi and has inaugurated by Joko Widodo, Indonesian
President. The off-shore wind turbine potential to generate 75 megawatts (MW) of
electricity by using 30 Gamesa 2.5 MW turbines. It has expected to deliver power to
around 70 000 households from the farm. A good achievement in a first farm, a
similar wind project is currently being developed in Jeneponto located in South
Sulawesi. The construction already 80% approximately to complete. Besides, also
several other wind farm projects are currently being developed in Tanah Laut, East
Kalimantan and Sukabumi, located in West Jawa.
Currently, wind contributes just 12% to the country’s energy mix. Globally,
the power rates will be fixed as opposed to traditional power sources, means that price
are vulnerable to a variety of development. It is the benefits of choosing a renewable
energy system such as a wind energy.
Source : UPC Renewable
2.1.3 Hydropower
A hydropower plant can use a reaction or impulse turbine depending on the available
resources only way to reduce the dependency on fossil fuel is by increasing the renewable
energy production capabilities. It is very important to consider in a short term economic
feasibility of renewable energy resources for developing countrie. Among all renewable
energy resources, hydroelectricity is the most economical and reliable source. Due to
environmental concerns and very large capital cost a large hydropower station has less
attraction in the present world economy. Nonetheless, hydropower has quite large potential
development. Particularly in Indonesia has many island country get huge potential for using
hydropower on many river and high rainfall because many area of Indonesia lie in equator
line.
Indonesia’s technical hydropower potential is estimated around 75 000 MW. The
untapped resources concentrated on the island of Sumatera, Jawa and Sulawesi. There is
currently about 8 GW of economically viable undeveloped hydropower potential, which
would provide almost 33 TWh of electricity per year. Hydropower development will be
driven in part by the government target to increase the power supply due to cover the
increasing of total energy demand in Indonesia. Despites, there have seven hydropower
stations are currently under the construction in Indonesia. A further ten projects totalling
1819 MW are subject to power purchase agreement, while 19 projects totalling 2131 MW are
still in the study and design phase.
Now, Indonesia is also importing hydropower to the West Kalimantan province in
Borneo, Sarawak in Malaysia. The largest project are under construction, a pumped storage
project located in Western Jawa. The total project cost estimated at USD 800 million. It will
bw supported by specific investment loan from the World Bank about USD 640 million. It is
because the goal of the project is to increase the peaking capacity of the Jawa Bali grid in an
environmentally and socially in sustainable way.
2.1.4 Biomass Energy
Biomass is an organic material that from plants and animals. It is also a renewable
source of energy. Biomass contains stored energy from the sun. The examples of biomass is
wood, agricultural crops, food, yard, animal manure, human sewage and some other organic
materials. There has a process before its turn to energy. Plants absorb the sun’s energy in a
process call photosynthesis. When biomass is burned, the chemical energy in biomass is
released as heat. Then, biomass can be burned directly or converted to liquid biofuels or
biogas that can be burned as fuels.
Solid biomass such as wood and garbage can be burned directly to produce heat. It
also can be converted into a gas form that called biogas or into liquid biofuels such as ethanol
and biodiesel. These fuels can then be burned for energy. Biogas forms when paper, food
scraps, and yard waste decomposed in landfills and it can be produced by processing sewage
and animal manure in special vessels called digesters. Ethanol is made from crops such as
corn and sugar cane that fermented to produce fuel ethanol for use in vehicles. Biodiesel is
produced from vegetables oils and animal fats and can be used in vehicles and as heating oil.
Source : The National Energy Education Project
Indonesia estimated to produces 146.7 million tons of biomass per year. The biggest potential
biomass energy can be found in the island of Kalimantan, Sumatera, Irian Jaya and Sulawesi.
Renewable natural resources such as biomass potential to make energy conversion. In
Indonesia, the most raw material used are from the wood from the logging industry, oil-palm
shell waste, coconut shell wastes from coconut plantation that also produce coconut oil and
straw from rice cultivation. However the plantation that contributed the highest energy is
from the pam oil with the efficient systems. There are at least eight new plantation of palm oil
are still under a construction plus already has 39 palm oil plantation currently operating in the
country.
The other potential source of biomass energy can also from municipal wastes.
Indonesia gain high quantity of city or municipal waste compare to others big cities in the
world. The organic wastes contributed mainly from the domestic wastes or household kitchen
wastes. All the wastes are collected by municipalities to be dumped into dumping ground or
landfills. Some of the wastes also burned at each household.
However, Indonesia had been suffering to handle biomass source because of the
increasing populations of the coupled inadequate number of waste treatment facilities. In
addition, the amount of allocated budget for waste management also rise. The energy
consumption in Indonesia has grown rapidly after recovery from the Asian financial crisis in
1998. The Indonesian policy is to reduce the consumption of fossil fuels by utilization of
biomass wastes includes other renewable resources. Indonesia put a priority on renewable
energy development to generate power to increase electricity power to occupied national
demand.
2.1.5 Wave Energy
Ocean energy is one of the abundant resources in promising renewable energy
options. It is significant role for the future of energy management to reduce carbon emission
at the same time improves the economic growth in coastal regions.
Wave energy also categorized as one of the renewable energy. It is also assume the
largest estimated global resources form of ocean energy. Wave energy is the transport and
capture of energy by ocean surface waves. For information, Monsieur Girard and his son
from Paris was the first human attempt wave energy when they trying to use directly
mechanical action to drive a heavy machinery include mills, saws and pumps in 1799. Wave
energy produced with placed the electricity generators on the surface of the ocean. The output
of the energy or power was depend on the height of the wave, wave speed, wave length and
water density also.
Indonesia, considered to produce a highest power by the ocean because of the
demographic factor, an archipelagic country in South East but it has still not been able to
maximize its ocean potential. Indonesia should be able to achieve the targets because the area
of the country, two third was covered by the ocean plus the length of the coastline is around
54 716 km. So, there no has any excuse to generate power from the ocean with the
combination of the oceans thermals, waves and the tidal currents around 216GW ( ESDM,
2017 ).
Figure : Potential Areas of Wave Energy Development in Indonesia
Sources :
From the figure, it shows the highest potential wave energy in Indonesia is in
Meulaboh with the wave height ranging from 0.72m to 5.33m in 4.46s to 5.68s. Then,
followed by South Kuta with the range wave height from 0.39m to 5.57m in 3.29s to
10.21s. In Manokwari, the significant wave height ranging from 0.53m to 5.85m in
significant period about from 3.29s until 9.90s.
However. Indonesia also faced many challenges to develop wave energy, the
main problems is about the costs. The electricity production cost of the wave energy
generator is relatively higher compare to the others conventional power plants. Plus,
the limited of some equipment and components has hampered due to the increasing of
the interest of investors.
2.1.6 Geothermal Energy
Geothermal energy is relatively form from heat in the inner earth. Pumped
water into the earth is collected at the earth’s surface in the form of steam, the vapour
used to drive the turbines and produce an electricity energy for human use. Even
though geothermal looks more environment friendly but the exploration costs of the
geothermal plant is higher than for plants that run on fossil fuels. However, once in
use, production costs are low compared to the fossil fuel-fired plants.
The uses of the geothermal energy is used for heat pumps, bathing, space
heating, green houses, aquaculture and industrial processes. Indonesia stick at 3 rd
places in the world that generate electricity from the geothermal energy (International
Geothermal Association). Due to economic growth, geothermal power market grew
significantly. This is because of more low income and rural communities are
connected to the electricity grid. Many governments are also increasingly focused on
lessening dependence on expensive and environmentally unfriendly fossil fuels. As
energy demand is rising quickly in Southeast Asia’s largest economy on the back of
population growth in combination with structural economic expansion giving rise to a
rapidly expanding middle class as well as the influx of new investments and
industrialization.
2.2 Demand of Energy in Indonesia
The primary energy supply in Indonesia is mainly based on fossil fuels like oil, gas
and carbon. In 2015, 41% of Indonesian energy consumption was based the oil 24% on coal.
Renewable energy, particularly hydro and geothermal have a share of 6%, but statistic do not
cover the traditional use of biomass as energy for cooking, lighting and process heat in rural
areas, which is estimated to comprise 21% up to 29% of the total energy demand. In the past,
the prolonged prise subsidies and availability of oil, resulted in low oil prices in Indonesia.
Currently, the gasoline market has been opened for private players and gasoline price for
transportation in fluctuates adapting to changes in oil prices.
Renewable energies include wind, solar, biomass and geothermal energy sources.
This means all energy sources that renew themselves within a short time or are permanently
available. Energy from hydropower is only partly a renewable energy. This is certainly the
case with river or tidal power plants. Otherwise, numerous dams or reservoirs also produce
mixed forms, e.g. by pumping water into their reservoirs at night and recovering energy from
them during the day when there is an increased demand for electricity. Since it is not possible
to clearly determine the amount of generated energy, all energies from hydropower are
displayed separately. In 2015, renewable energies accounted for around 36.9 percent of actual
total consumption in Indonesia.
Indonesian primary energy demand increased by 4.9 % in 2018, well ahead of its 10 -
year average annual growth rate of 2.8 % 2007 – 2017. Most of the new consumption was
underpinned by increased demand for transportation services, reflected in higher demand for
gasoline, diesel and jet fuel. Energy consumption per capita has increased steadily over the
past decade. This was unpinned by steady economic growth 5.2 %, marginally below its
average annual rate of 5.8 % 2007-2017.
Wind and solar power generation remain negligible in Indonesia, but biomass and
geothermal output increased 8.9% in 2018 to reach 3Mtoe. Renewable accounted for 5.5% of
total generation in 2018, slightly up from 5.3% in 2017. Indonesia can provide itself
completely with self-produces energy. The total production of all electric energy producing
facilities is 235 kWh, also 110% of own requirements. The rest of the self-produce energy is
either exported into other countries or unused. Along with pure consumption the production,
imports and exports play an important role. Other energy sources such as natural gas or crude
oil also used.
