OPPORTUNITIES AND CHALLENGES FOR SOLAR PV ROOFTOP IN INDONESIA Dr.-Ing. Oo Abdul Rosyid

The 2nd Asia Renewable Energy Workshop “from Research to Industrialization” Jakarta, December 2-4th, 2015

outline INTRODUCTION POTENSIALS AND DEVELOPMENTS OF SOLAR ENERGY IN INDONESIA SOLAR PV ROOFTOP SYSTEM BARRIERS, OPPRTUNITIES, AND CHALLENGES SUMMARY

Renewable energy is being seen as a transformative solution to meet growing energy needs both globally and nationally. Indonesia ranks amongst the highest recipients of solar irradiation in the world with average solar irradiation of 4.8 kWh/m2.day. It has emerged as a preferred choice to meet the country’s increasing energy requirements. There has been increasing focus on development of solar energy in Indonesia for reasons such as limited and depleting reserves of conventional energy generating fossil fuels, their impact on environment as well as on economy, apart from issues of high losses in transmission and distribution and need for a diversified basket of energy generation sources. Today installed capacity is about 77 MWp (2015), but still low compared with the national target of 2.200 MWp in 2025 (or 160 MWp/year); The government has issued many PV programs (e.g. PV rooftop programs) and regulations (PP No. 5/2006 revised with PP No. 79/2014 ) to increase share of renewable energy in the energy mix national; Implementation of PV rooftop will accelerate the growth of PV development, and the growth will be more significant if the “feed-in tariff (FIT)” is implemented.

Current Status of National Energy National Energy Mix 2014 1.176 millon BOE Geother mal 1.5% Coal 26.38%

Hydro 3.29% Oil 46.93%

Gas 21.9%





Energy costs more expensive, and subsidy become higher;



Energy consumptions is still inefficient;



High dependence to fossil fuels, while reserve is limited;



 

Energy elasticity = 1,60 Non-fossil energy share < 5%

The national energy consumption growth about 6.5% /a, yet balanced with sufficient energy supply;



Electrification ratio in 2014 is about 80.51% (19,49% household is un-electrified yet); Application of RE is still optimal yet; Government issued PP No. 79/2014, RE target of 23% (in 2025) and 31% (in 2050); Government target to reduce GHG emission of 26% in 2020 (PP No. 61/2011)

National Electrification Ratio(2014)

NO

RENEWABLE ENERGY

RESOURCES POTENTIALS

INSTALLED CAPACITY

UTILIZATION RATIO (%)

1

Hydro

75.000 MW

5.250 MW

7,0 %

2

Geothermal

29.475 MW

1.403,50 MW

4,8 %

3

Biomass

32.000 MW

1.740,40 MW

5,4 %

4

Solar

4,80 kWh/m2/day

5

Wind

6

Ocean

7

Uranium

77,02 MW

-

3 – 6 m/s

3,07 MW

-

61 GW ***)

0,01 MW ****)

-

3.000 MW *)

30,00 MW **)

-

*) Only in Kalan – West Kalimantan **) As research centre not for energy utilization

***) Research centre of ESDM, 2014 ****) Prototype BPPT

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Bussiness As Usual 450 Juta TOE

TODAY

EBT 6%

23%

Batubara 30%

Batubara 29%

Batubara 29% Gas Bumi 24% Minyak Bumi 41% 2014

EBT

EBT 17%

215 Juta TOE

 ENERGI PRIMER EBT: 13 MTOE  PANAS BUMI : 6 MTOE  BIOFUEL : 4 MTOE  BIOMASSA : 2 MTOE  AIR : 1 MTOE

KONSERVASI ENERGI PRIMER 11%

400 Juta TOE

290 Juta TOE

 TOTAL ENERGI PRIMER NASIONAL 215 MTOE

TARGET 2025

Gas Bumi 22%

Gas Bumi 22%

Minyak Bumi 32%

Minyak Bumi 25%

2020

2025

7

Energy is obtained from converting sun light into other energy form (electricity and thermal) Solar energy potential in Indonesia is around 4.8 kWh/m2 or equivalent to 112.000 GWp; PV technology is suitable for Indonesia, and has been used since 80s, with current installed capacity of 77 MWp (2015); Solar energy applications can be divided into solar thermal (eg. SWH) and solar PV (Solar PV power); Solar PV technology is pollution free, no CO2 emission, and has minimal impact to environments.

Solar Energy Potensials Temperature Irradiation Insolation = 5.7 kWh/m2.day (or 1500 kWh/m2.year)

Rosyid - 9

Solar Energy Applications I.

II.

Solar thermal; uses heat component of the sun;  Solar water heater  Solar drying  Solar cooking  Solar thermal power, etc Solar photovoltaics:uses light component of the sun to generate electricity.  Solar PV power  BIPV  Pumping system  Solar cars  Street and traffic lights, etc

Rosyid - 10

Solar PV Development  World PV installed capacity is around 200 GWp (2015);  In 2014, the biggest PV installation is Europe 85 GWp, followed by Asia 70 GWp, USA, and Middle East and Africa;  Indonesia ∼ 77 MWp  China contributes more than 50% of the global PV production, very fast growth (where the share is 1% in 2001);  Indonesia ∼ 350 MWp/a (14 PV module manufactures) WORLD INSTALLED CAPACITY (2014)

Total 321 MWp (2024)

Milestones of PV Development in Indonesia •

80 PV SHS 1980s 1st PV Applications • • •

BPPT R&D (TUV, NEDO) Solar Village Indonesia) Solar cell laboratory

• • •

86,400 PV-SHS 14 PV Hybrid Systems Total ∼1 MWp 1990s

Solar Home System (SHS) & Prototype Hybrid System • BPPT R&D (TUV, Worldbank) • REI Projects • PV Rural electrification • Australian Aid (AUSAID) • Solar Energy for 1 Mio Houses

• •

Hybrid (35-350 kWp) Centralized(5 -200 kWp) Total∼13 MWp 2000s

PV Power Plant Off-grid (Centralized & Hybrid System) • BPPT R&D (GEF Worldbank, Ausaid) • PV Laboratory (ISO 17025) • PV module assembly (LEN) • PV Program (ESDM, KPDT, others)

• • •

Hybrid (45-600 kWp) On-grid(1-5 MWp) Total ∼77 MWp 2010s

PV Power Plants (Offgrid & On-grid) • •

•

PLN PV Program 100 & 1000 islands IPP Program open bidding for 80 PVPPs (140 MWp) 14 PV module manufactures (7 APAMSI members), each ∼30 MWp/a

SOLAR PV ROOFTOP SYSTEM  A power plant converting sunlight into electricity with use photovoltaic cells, known as photoelectric effects (Albert Einstein, Physics Nobel 1921);  It consists of solar panels installed on the roof of any residential, commercial, institutional and industrial buildings for generation of electricity.  There two types of PV rooftop systems: 1) PV rooftop system with storage facility: use a battery for storage of power. This can be utilized even during night when the sun is not available. 2) Grid connected PV rooftop system: In a grid connected rooftop system, the DC power generated from PV panel is converted to AC power using power conditioning unit and it is fed to the grid.

ADVANTAGES OF A PV ROOFTOP SYSTEM • Savings in transmission and distribution loss for power not fed into the grid; • No need an additional land for setting up the solar system; • Increase public participation in PV development; • Local employment generation; • No storage losses leading to effective utilization of power; • Etc.

Policy and Regulations  Gov regulation No. 5/2006, National Energy Policy, as a basis of renewable energy development in Indonesia;  Law No. 30/2009, electricity, give a priority to use local energy for electricity generation in the regions;  Ministry decree of ESDM No. 31/2009, PT. PLN obligates to buy electricity from RE based power generation below 10 MW;  Ministry decree of No.21/PMK.011/2010 and No 24/PMK.011/2010, to regulate Mengatur pemberian beberapa fasilitas fiskal untuk perusahaan yang mengembangkan energi terbarukan;  Ministry decree of ESDM No. 17/2013, purchasing electricity by PT PLN from a PV power plant (IPPs);  Regulation of the Board of Directors of PT PLN (Persero) No 0733.K/Dir/2013, Utilization of Photovoltaic Electrical Energy By PLN Customers;

REGULATION OF THE BOARD OF DIRECTORS OF PT PLN (PERSERO) No 0733.K/DIR/2013 •

Article 3: Installation of Photovoltaic-Devices 1. 2. 3. 4.

•

A customer-owned PV device shall be installed and placed on a building owned by the customer. The PV device as referred to in paragraph (1) is allowed to be operated in parallel with PLN electricity system. Customer may send the excess kWh energy from the PV system to PLN electricity system PLN may provide information on electrical energy received by PLN from the PV system, if necessary.

Article 4: Transactions of Electricity 1. 2. 3.

4.

PLN installs the export import (exim) type of kWh meters for PLN customers that utilize PV electrical energy, in addition to the PLN electricity. The electrical energy received by PLN from the PV system will be offset by PLN with the electrical energy delivered to the Customers. In the event that the energy received by PLN from the PV system as referred to in paragraph (2) is greater than the energy delivered by PLN, the differences become kWh deposits to be taken into account in subsequent months thereafter. A Minimum Charge shall still be charged to Customers in accordance with the amount of installed power connected with PLN.

PV Rooftop Study for Residential •

In 2015 the Ministry of Energy plans to build PV rooftop on 10 government buildings, airports, and schools with total of 1 MWp (50 kWp/building);

• With existing “net-metering” regulation of PLN No. 0733.K/DIR/2013, possible to install PV Rooftop for the PLN customer residential building. • A brief calculation of the potentials is about 16 GWp (for the PLN tariff category of R1, R2, R3); •

•

The growth development will be more significant if the “feed-in tariff (FIT)” is implemented Public participations would be increased with PV rooftop program; 17

GOL TARIF PLN

JML PELANGGAN (2015)

KONSUMSI DAYA [kWh/BLN]

POTENSI PV ROOFTOP (MWp) 2015

2030

R1/1300

6,837,557

0-100

6,837.56

9,401.64

R1/2200

2,313,834

100-200

4,627.67

6,363.04

R2/3500-5500

864,634

200-500

3,458.54

4,755.49

R3/>6000

181,445

>500

1,451.56

1,995.90

16,375.32

22,516.07

TOTAL POTENSI

Energy Cost Comparison between PLN and PV Rooftop

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Example- PV Rooftop Applications • • • • •

• • • •

BPPT Park building, Jl. MH Thamrin 8, Jakarta PV Array capacity: 10 kWp Technology: On-Grid, direct coupling Inverter: 3 x 4.2 kW (1 fasa) Installed: 2006

Balai Kota DKI Jakarta, Jl. Merdeka Selatan, Jakarta Installed capacity of 190 kWp (area 1330 m2), in 2012 Investation: Rp. 6.08 M (US$3200/kW) Energy production 20 years: 180 MWh; LCOE (20 years): Rp. 1700 /kWh

 Bangunan lain (Jkt): KESDM (10 kWp), Dinas Energi DKI (15 kWp), LPE-ESDM (10 kWp), German School (10 kWp), SMPN 19 (20 kWp), LEMIGAS, dll

Opportunities and Challenges • The potential of solar energy in Indonesia is abundant; • Contribute to decrease CO2 emissions by 26% (relative) till 2020, increase share of renewables 23% (2025); • High upfront cost involved in putting up solar panels on rooftops though PV module prices have declined by about 50% globally since 2011; • Rising electricity prices & net metering, and lack of awareness among consumers; • Power from multiple small solar projects poses challenge to grid stability; • Limitations in FiT approach due to issues of monitoring & verification to avoid misuse of system from feeding subsidised fuels; • Lack of technical specification like voltage, flicker, and synchronization for Net-metering system • Challenges with respect to grid integration with likelihood of reversal of power flow across the network and erratic behaviour of low voltage protection systems.

Barriers and Possible Options N O

BARRIERS

POSSIBLE OPTIONS

1

Lack of the financial mechanism for financing Solar PV roof top

providing customers with appropriate subsidy, incentives, financing assistance, and soft loan to reduce the high investment cost.

2

Insufficient Policies and Regulations

evaluation to the existing, and establishment of a functioning mechanism for sustained periodic review/updating and enforcement of policies, guidelines and incentives

3

Insufficient Technical Know How of Solar PV Rooftop

A Solar PV Technology Support Program would be proposed in addressing the low quality of PV systems and components.

4

Lack of Sufficient Standard, Qualified Testing Laboratory and Certification Body

capacity building is needed to provide qualified human resources in the field of designing, inspecting, operating, and installing solar PV rooftop plant

 Solar PV applications in Indonesia have been started in 1980s;  Rooftop solar PV offers an efficient, emission-free renewable source of electricity which can be used off-grid as well as on-grid.  Implementation of PV rooftop program will increase public participation in PV development program.  PV rooftop will accelerate the growth of PV development, and the growth will be more significant if the “feed-in tariff (FIT)” is implemented;  Public participations would be increased with PV rooftop program;  Rising electricity prices & net metering  new opportunities  Grid interconnection issues for small island grids

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THANK YOU OPPORTUNITIES AND CHALLENGES FOR SOLAR PV ROOFTOP IN INDONESIA

Dr.-Ing. Oo Abdul Rosyid, MSc [email protected]

AREW, Jakarta, December 2-4th, 2015

PV Development in Indonesia  Solar PV applications in Indonesia have been started in 1987, BPPT installed 80 SHS at Sukatani in West Java.  In 1991-2011, the presidential aid for the installation of 13,445 units of SHS in 15 provinces, followed with development of PLTS hybrid, smart micro-grid (500 kWp), PV rooftop (government buildings), etc;  In 2011-2012, the PLN issued the 1000 islands program for isolated island in Indonesia for 3 years;  In 2013, the first biggest PV power plant was build in Bali, with capacity of 2×1 MW, launched in 25/2/2013;  In 2014, Government open bidding for 80 unit PV power plant with the total capacity of 140 MWp;  In 2015, The biggest PV power plant 5 MWp, installed in Kupang, East NTT.  In last 2 years many PVPPs installed by PLN, MoE, and other institutions with the total capacity of 77 MWp.