Republic Of Indonesia

COORDINATING MINISTRY FOR ECONOMIC AFFARS

SMART GRID DEVELOPMENT POLICY IN INDONESIA

Hanoi, 2 April 2013

What is a Smart Grid? The smart grid will be characterized by  • A two‐way flow of electricity and information  to create an automated, widely distributed  energy delivery network.  • It incorporates into the grid the benefits of  distributed computing and communications  – to deliver real‐time information and  – enable the near‐instantaneous balance of supply  and demand at the device level.

What is a Smart Grid? Distinguishing characteristics of the Smart Grid cited in US‐EISA (US Energy  Independence and Security Act, 2007) include: •Increased use of digital information and controls technology to improve reliability,  security, and efficiency of the electric grid; •Dynamic optimization of grid operations and resources, with full cyber security; •Deployment and integration of distributed resources and generation, including  renewable resources; •Development and incorporation of demand response, demand‐side resources, and  energy‐efficiency resources; •Deployment of ‘‘smart’’ technologies for metering, communications concerning grid  operations and status, and distribution automation; •Integration of ‘‘smart’’ appliances and consumer devices; •Deployment and integration of advanced electricity storage and peak‐shaving  technologies, including plug‐in electric and hybrid electric vehicles, and thermal‐ storage air conditioning; •Provision to consumers of timely information and control options; Source: US‐NIST Framework and Roadmap for Smart Grid interoperability Standards, Release 2.0

What does the concept of Smart-Grid look like?

Electrical Infrastructure

“Intelligence” Infrastructure

Source:   Rochester Institute of Technology 4

Interactions of Smartgrid Actors

Source: US‐NIST Framework and Roadmap for Smart Grid interoperability Standards, Release 2.0

INDONESIA  VISION  2025

6

NATIONAL ENERGY POLICY (PRESIDENTIAL DECREE NO. 5 YEAR 2006)

Target in 2025 1. Less than 1 for energy  elasticity 2.  Optimized primary  energy mix

CURRENT ENERGI MIX (1 million BOE) National  (Primary) Energy Mix Hydro Power,  3.11% Geothermal,  1.32%

Natural Gas,  28.57%

Oil 51.66% Coal, 15.34%

National (Primary) Energy Mix of 2025 (BaU Scenario) (5 million BOE) National Energy Mix 2025 (3 million BOE) (Presidential Decree No. 5/2006)

Power Plant, 1.9% Mini/micro Hydro Power Plant, 0.1% Geothermal,  1.1%

Oil,  20%

Gas, 20.6%

Gas, 30% Oil,  41.7%

7

BIOFUELS, 5% RE,17%

OPTIMIZING ENERGY MANAGEMENT

Geothermal, 5% Biomass, Nuclear, Hydro Solar Energy, Wind  Power, 5%

Coal 34.6%

Coal , 33%

Coal Liquefaction 2%

DEPUTIES DUTIES AND FUNCTIONS OF ENERGY AND MINERAL RESOURCES  COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

•

MAIN TASK – Prepare  coordination  and  preparation  of  Policy  Planning  and  synchronize the implementation of policies, monitoring, analysis, and  evaluation of policy implementation in energy, and mineral resources.

•

FUNCTION – Preparation  of  planning  and  coordination  of  energy  policies  and  mineral resources. – Sync  implementation  of  energy  policies  and  mineral  resources. – Monitoring,  analysis,  evaluation  and  reporting  of  problems  or  policy  implementation  activities  in  the  field  of  energy,  and  mineral  resources.

MAIN TASK COORDINATING MINISTRY FOR ECONOMIC AFFAIRS . VISION

: Realization agency synchronization of development.

coordination and effective economic

. MISION

: Improve coordination of planning and policy making, as well as synchronize the implementation of policies in the field of economy.

. GOAL

: Realize the synchronization of policies for the economy and improve the effectiveness of coordination in achieving sustainable economic growth.

Indonesia Electricity Sytem

• • • •

12 interconnected system, 70 isolated system Installed capacity 26 GW, peak load 22 GW Electrification ratio of 65% Demand growth rate of 9.17%

• • •

240 million population 39 million connected customers Fuel mix 43% coal, 25% gas, 20% fuel‐oil,  6% hydro, 6% geothermal

Projection on Consumption: 2010-2019 Average Growth: 9,2 % per annum 54 TWh 21 TWh IB : 10,2%

11 TWh

28 TWh

IT : 10,6% 252 TWh 115 TWh

JB : 8,97%

2010

2019

Power System Reliability Trends on SAIDI & SAIFI SAIDI 1,736.4 1,620.8

Good

Menit/Pelanggan

1,800 1,400 946.3

1,000 654.0

950.0

950.0

622.2

600

487.8 565.6

200 2003

2004 Realisasi

2005

2006

2007

Sasaran

SAIFI 15

Kali/Pelanggan

13.85 13.00

13

13.00

12.68

12.51

12.77 12 11.78

11

10.57 10

SAIDI: System Average Interruptions Duration Index SAIFI: System Average Interruptions Frequency Index

2003

2004 Realisasi

2005 Sasaran

2006

2007

Good

13.96

14

ROLE OF THE COORDINATING MINISTRY FOR ECONOMIC DEVELOPMENT POLICY IN SMART GRID Energy Law Article 12 Presidential Regulation No. 5/2006

OPPORTUNITIES

CONSTRAINTS

Strategic Environmental National Energy Board Draft Conditions Expected

Intitutions

TARGET

Recomendation • National Economic Board • National Climate Change Council • National Research Council. • Stake Holder

DETERMINATION BY THE GOVERNMENT With the approval of DPR POLICY AND STRATEGY

ACTION PROGRAM

Resulting Condition

Coordination Planning and Policy Formulation and Implementation Synchronization Smart Grid Development Yes Have  Problem ?

Regulation President 24/2010 Article 24

MONITORING AND EVALUATION 13

PROBLEMS MAP OF SMART GRID IMPROVED IMPROVED SUPPLY SUPPLY EQUIPMENT EQUIPMENT ACCELERATION ACCELERATIONOF OFTHE THE USE OF SMART GRID POLICY USE OF SMART GRID POLICY

TECHNOLOGY  TECHNOLOGY  SECURITY SECURITY

INDUSTRIAL INDUSTRIAL DEVELOPMENT DEVELOPMENT

MASTERY OF MASTERY OF TECHNOLOGY TECHNOLOGY FISCAL POLICY/ FISCAL POLICY/ ENERGY PRICING ENERGY PRICING

DIRECT DIRECT&&INDIRECT INDIRECT SUBSIDIES SUBSIDIES

IMPROVED IMPROVED QUALITY QUALITYGRID GRID ACCELERATION OF THE ACCELERATION OF THE BUSINESS SMART GRID POLICY BUSINESS SMART GRID POLICY

COMMUNITY COMMUNITY AWARENESS AWARENESS

14

IMPROVED IMPROVED MANAGEMENT MANAGEMENT OF OFELECTRICAL ELECTRICAL

SMART GRID  ‐ INDONESIAN VIEW

TODAY’s GRID Vs. TOMORROW’s Today’s Grid

Smart Grid

Consumers are uniformed and nonparticipative with power system

Informed, involved and active consumers; demand response and distributed energy resources

Dominated by central generation: many obstacles exist for distributed energy resources interconnection

Many distributed energy resources with plugand-play convenience:focus on renewables

Limited wholesale markets, not well integrated: limited oppurtunities for consumers

Mature, well-integrated wholesale markets, growth of new electricity markets consumers

Focus on outages: slow response to power quality issues

Power quality is a priority with a variety of quality/price options: rapid resolution of issues

Little integrationof operational data with asset management: business process silos

Greatly expanded data acquisition of grid parameters: focus on prevention, minimizing impact to consumer.

Responds to prevent further damage: focus is on protecting assets following fault

Resillient to attack and natural disasters with rapid restoration capabilities.

Benefits of a Smart Grid • Higher Customer Satisfaction: The combination of lower costs, improved reliability  and better customer control will raise satisfaction among all types of customers  (residential, commercial, industrial, institutional). • Improved Reliability: Smart grid will reduce and shorten outages and improve the  quality of power. • Shorter Outages: The incorporation of advanced sensors and measurement (PMU),  communication networks and smart systems will allow an unprecedented degree  of system visibility and situational awareness of the electric power system. Smart  grid will result in shorter outages through its “islanding” and “self‐healing” features. • Customer Energy/Cost Savings: As pricing becomes more transparent and is  aligned with the underlying economics of generation and distribution, customers’ decisions to save money will benefit society as well. • Highest Security: Security will be incorporated into the design of the smart grid and  will require the implementation of practices and procedures by individual  stakeholders. In this way, the physical and cyber security risks can be managed to  the highest standards possible • Timely renewable: Smart grid is the enabler of more renewable energy. Its  development will allow for the timely incorporation of these sustainable sources of  power in a user‐friendly, cost‐effective manner.

Indonesian Geographic of Electricity  Service Areas • •

Two of main islands have own interconnected systems The rests are: – Clusters of service areas with main grids, including remote off‐grid distributed systems  (Kalimantan, Sulawesi, Papua) – Small islands: clusters of grids mainly of diesel systems, off‐grid distributed systems 

Interconnected Systems

Smart Grid – Indonesian View • Smart interconnection  grids – Improved reliability – Energy savings – Robustness of operation  and control (Self‐Heals) – Etc.

• Smart microgrids with  distributed energy  resources (DER) where  applicable – Distribution systems  containing high DER  penetration may require  considerable operational  control capabilities.

Smart Interconnection Systems • • • • • • • • •

Faster Protection & Control / Self‐Heals More robust More renewable More efficient Higher Power Quality More MicroGrids Improved Capacity Factor More Reconfigurable Demand Response/Control  – Smart meters for large loads at commercial and industrial facilities

Smart Microgrids and Renewable Energy Penetration – Remote, Isolated Areas Paradigm Shift in Energy System Increasing penetration of renewable energy, diversification in electricity  generations, reduction in carbon emission, etc. Future Chalenges • Enhanced compatibility of electricity network with increased penetration of  renewable energy  • Communications between the network and various types of generations • Providing services for various consumers’ electricity needs, mainly in remote  and isolated areas

A key solution Smart MicroGrid could efficiently control integration of renewable energy to  the main grid. 21

CHALLENGES / ENABLERS CHALLENGES

ENABLERS

Communication Infrastructures * Big Cities: Available but Expensive * Small Towns: Not all available

Development of communication infrastructure

Information Technology * Limited SCADA capabilities * Smart meters only for large consumers

SCADA Improvement Proliferation of smart meter

Non-competitive Electricity Market

Opening up electricity market

Regulated Government Pricing

Policies & Regulations: * Dynamic Pricing

Unsteady supply from Renewable Energies (Micro Hydro, Solar, etc.)

Incentives for Renewable Energy

Participation from consumers difficult

Incentives for Consumer Participations

Very few Smart Building applications

Energy efficiency awareness

Investments are expensive

Incentives for Investments

PILOT PROJECTS AGENCY FOR ASSESMENT AND  APLICATION TECHNOLOGY (BPPT‐PLN)

Smart Microgrid on Sumba

Source : BPPT, 2013

Main Powerplant Sites

Source : BPPT, 2013

Sumba Barat Load Profile

(Waitabula+Waikabubak) Source : BPPT, 2013

Simulasi Smart Grid

Source : BPPT, 2013

Pilot Plant – Sumba Smart Microgrid  with a Large PV System 

Example Scenario :  Energy Control for Smart Solar in Smart Micro‐grid Photovoltaic

Diesel Generator

Batteries

Master Controller

Micro Hydro

Control System: Diesel

Master

Hydro

Start..!!

Max

Photovoltaic Load

Min

Battery

Other Potential Project

Jakarta Smart City (Consist Of 

Ring SDH STM-4

MKR

KRT

ACL

PRK DKB GTS GBR PLP PST MPG PLM PLG GND BKS CWG CLG SRGTGR

Many Superblock Smart Micro Grid) JKT

Ring PDH 140M

CKP

TBL

JTH

CBG

KRP

SMD CRB

BGR

PWD

CJR

TGL PKL

CGR

UJB BDC

BJG

KBS

TSK

BJR

RWL

KLT PJO

BDG

YGA

Ring SDH STM-16

SDH STM-16 LINK SDH STM-4 LINK SDH STM-1 LINK PDH 140M LINK PDH 34M LINK

Ring SDH STM-4

DJT

KRN

SWH

GRT PDL

PLM SMG UGR

METRO

SLO MDU

BGL PSU KDR

MLG

GRI

PJB WRU

SBY

STB PTN PBO LMJ

BYW JMB

NODE WITH FO EQUIPMENT NODE WITHOUT FO EQUIPMENT

JAWA & BALI BACKBONE NETWORK TOPOLOGY

GLM

KPL NGR DPS

Load Management

Micro Grid/Gen

Micro Grid/Gen Micro Grid/Gen

Micro Grid/Gen

Micro Grid/Gen

Smart Grid

Micro Grid/Gen Micro Grid/Gen Micro Grid/Gen

Micro Grid/Gen

Micro Grid/Gen Micro Grid/Gen

Energy Control Networking Platform AMM+

Control Nodes are  either Data  Concentrators or Edge  Control Nodes

Any TCP/IP Network

Control Node

Smart Street Lighting

Control Node

Smart Metering

Control Node

Smart Grid Optimization

Control Node

Smart Solar

Control Node

Smart Buildings

Smart Grid Vision – Summary Indonesian vision for the future ‐ a network of integrated  systems that can monitor and heal itself

Part of interconnection

Smart Microgrid

Thank you for your attention…